The Gujarat Electricity Regulatory Commission (GERC) has notified the “Grid Interactive Battery Energy Storage System (BESS) Regulations, 2026” to create a clear framework for integrating battery energy storage systems into the state’s electricity network. The new regulations are aimed at improving grid reliability, supporting renewable energy integration, and helping Gujarat meet its Energy Storage Obligation (ESO) targets.
Under the regulations, a Battery Energy Storage System is defined as an electrochemical device capable of drawing electricity from the grid or generation sources, storing it as chemical energy, and supplying it back to the grid whenever required. The Commission stated that BESS will play an important role in balancing power demand and supply, especially as renewable energy capacity continues to increase across the state.
The regulations recognize multiple deployment models for BESS projects. These include systems co-located with renewable or conventional power plants, standalone storage facilities connected directly to the grid, and storage systems embedded within transmission and distribution infrastructure. The framework also allows consumers and prosumers to install battery storage systems under arrangements such as Net Metering and Virtual Net Metering.
GERC has prescribed technical requirements for utility-scale projects. Most BESS installations connected at 11 kV and above must have a minimum project size of 1 MW with at least two hours of energy storage capacity. However, smaller systems connected at the distribution transformer level or installed by individual consumers are exempted from these minimum capacity requirements.
Ownership of BESS projects has been opened to a wide range of stakeholders, including generating companies, transmission licensees, distribution companies, and independent storage service providers. The Commission has also emphasized transparent procurement mechanisms for these systems.
According to the regulations, procurement of BESS services will mainly be carried out through a competitive bidding process. Tariffs will generally be discovered as availability-based fixed charges. However, in special cases, procurement under different terms may be allowed with prior approval from the Commission.
All BESS projects are required to register with the Gujarat Energy Development Agency (GEDA). For co-located storage projects integrated with new renewable energy plants, separate registration will not be necessary if the storage details are already included in the primary project registration documents.
The State Load Despatch Centre (SLDC) has been given authority for scheduling and dispatch of all grid-connected BESS projects. Charging of batteries will be treated as electricity drawal from the grid, while discharging will be treated as electricity injection into the network. Standalone BESS projects will also be permitted to perform multiple functions, including energy arbitrage, ancillary services, frequency regulation, and peak demand management.
The regulations further highlight safety, cybersecurity, and environmental compliance requirements. Developers must follow technical standards issued by the Central Electricity Authority (CEA) and comply with cybersecurity protocols. Battery owners will also be responsible for safe disposal and recycling under the Battery Waste Management Rules, 2022. Consumer-related billing disputes will be addressed through the Consumer Grievance Redressal Forum (CGRF), while other disputes will fall under the jurisdiction of GERC.
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