The Rajasthan Electricity Regulatory Commission has issued new rules called the “RERC (Battery Energy Storage Systems) Regulations, 2026” to support the growing need for energy storage and improve grid stability in the state. These regulations replace the earlier draft released in 2025 and come after detailed discussions with stakeholders and public hearings held toward the end of that year. The move is seen as an important step to help Rajasthan manage rising renewable energy capacity, especially solar and wind power.
The new framework focuses on promoting the use of Battery Energy Storage Systems across the entire power value chain, including generation, transmission, and distribution. The regulations are designed to be technology-neutral, meaning any type of battery storage system can be used as long as it meets the required technical and performance standards. This approach is expected to encourage innovation and wider adoption of storage technologies.
A key feature of the regulations is the flexibility in ownership and development of storage projects. Battery storage systems can be developed, owned, or leased by distribution companies, transmission utilities, power generators, independent power producers, and even consumers. The commission has clearly included consumers and prosumers—those who both produce and consume electricity—under the eligibility criteria. This includes users operating under net metering or green energy open access, allowing more participants to invest in and benefit from storage solutions.
The regulations specify that grid-connected storage projects must have a minimum capacity of 1 MW with at least two hours of energy storage for systems connected at 11 kV or higher voltage levels. However, smaller systems installed at the distribution transformer level or behind the meter for individual users are exempt from this requirement. This ensures that both large-scale and small-scale applications can grow simultaneously.
To ensure fairness and cost efficiency, the commission has made it mandatory for utilities to procure storage capacity or services through transparent and competitive bidding processes. This is expected to bring down costs and improve efficiency in project allocation.
On the operational side, the State Load Despatch Centre will act as the nodal agency for implementing ancillary services. Battery storage systems will be allowed to participate in activities such as energy arbitrage, frequency regulation, and providing spinning reserves. Importantly, the regulations state that electricity generated from renewable sources and stored in batteries will continue to be treated as renewable energy when it is supplied back to the grid. This will help entities meet their Renewable Purchase Obligation targets.
The regulations also cover safety, cybersecurity, and environmental requirements. Proper disposal and recycling of batteries must follow the Battery Waste Management Rules, 2022, with producers responsible under the Extended Producer Responsibility framework. The commission has also included provisions to protect existing projects and contracts, ensuring a smooth transition to the new regulatory regime.
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