Andhra Pradesh Issues New Regulations For BESS To Boost Renewable Integration

The Andhra Pradesh Electricity Regulatory Commission has taken an important step toward modernizing the state’s power sector with the introduction of new regulations for the use of Battery Energy Storage Systems. The rules, published on September 11, 2025, are designed to create a flexible and stable electricity grid while supporting the goals of the Andhra Pradesh Integrated Clean Energy Policy, 2024. This policy aims to expand renewable energy capacity, and the new framework for battery storage is a direct response to both state and national-level initiatives for energy storage.

The regulations provide a clear structure for the ownership, deployment, and operation of battery storage systems across the power sector. Their main objective is to allow storage systems to be used as part of generation, transmission, and distribution networks, while also making it easier for them to take part in energy markets. By enabling these systems to serve multiple purposes, the state expects to support renewable energy integration, stabilize grid frequency and voltage, and build a market for ancillary services. These services, which include backup support and system balancing, are increasingly critical in a power sector where renewable sources like solar and wind are becoming dominant.

Ownership of battery systems will not be limited to one group. Distribution and transmission companies, system operators, power generators, renewable energy developers, and even independent service providers are now eligible to set up BESS projects. This wide participation is expected to drive innovation and competition in the sector. The systems themselves can be deployed in different forms depending on the needs of the grid. They can be installed alongside existing power plants, connected to the grid as standalone units, or even integrated at the consumer level, such as at electric vehicle charging stations. This flexibility of deployment ensures that storage can serve multiple roles, from supporting large-scale generation to stabilizing smaller distribution networks.

The planning and procurement process outlined in the rules is focused on efficiency and cost management. The selection of BESS locations will be based on detailed studies of grid power flows to ensure they are placed where they are most needed. Distribution companies and other licensees are encouraged to install storage systems at renewable energy generation sites, as this reduces grid integration costs and makes renewable power more reliable. The regulations also set a minimum size of one megawatt for individual projects, ensuring that installations are meaningful in scale. All procurement of capacity will take place through tariff-based competitive bidding, which is aimed at keeping costs low while attracting private investment.

The range of services that BESS can provide has also been clearly identified. These include frequency regulation, voltage support, and black start services, which are essential for restarting power systems after a blackout. To increase participation and effectiveness, the rules also create a role for aggregators. These entities can pool together multiple small storage units located in different places and offer them as a single resource to the grid, making smaller projects commercially viable.

By introducing these regulations, Andhra Pradesh is positioning itself as a pioneer in energy storage and clean energy innovation. The framework not only supports renewable integration but also ensures that the state’s grid becomes more resilient, reliable, and capable of handling future energy demands.