The Chhattisgarh State Electricity Regulatory Commission (CSERC) has issued draft regulations proposing the Third Amendment to the Grid Interactive Distributed Renewable Energy Sources Regulations, 2019. Released on September 22, 2026, the draft seeks to update the regulatory framework in line with emerging technologies, including battery energy storage systems, while addressing operational issues raised by renewable energy developers, distribution licensees and the State Load Despatch Centre.
A key proposal is the mandatory integration of battery storage for new distributed renewable energy projects above 5 MW that achieve commercial operation on or after April 1, 2027. Such projects will be required to install battery storage equivalent to at least 5% of their renewable energy capacity, with a minimum storage duration of two hours.
Additional storage requirements have been proposed for captive renewable energy plants. Where a captive plant’s capacity exceeds 100% of the consumer’s contract demand, battery storage equivalent to 20% of the capacity exceeding the contract demand will be required. Existing renewable energy projects will also be permitted to co-locate battery storage systems, subject to applicable regulations based on the project’s operational date.
The draft also introduces formal definitions for Behind-the-Meter renewable energy projects. These include grid-connected systems using reverse power protection relays as well as off-grid configurations. To prevent operational conflicts, prosumer distributed renewable energy sources and grid-connected Behind-the-Meter solar systems will not be allowed to operate simultaneously.
Under the proposed framework, Behind-the-Meter systems will not be permitted to directly bank electricity with distribution licensees. However, distantly located renewable energy projects may bank energy with the distribution licensee or through on-site battery storage facilities.
The commission has also proposed an incentive for prosumers supplying electricity to the grid during evening demand hours. Distribution companies would purchase electricity injected by prosumers between 19:00 and 24:00 hours at Rs. 8 per kWh, with the settlement to be made through the monthly billing cycle. Any surplus banked energy remaining unused at the end of the settlement period would be purchased by the local distribution licensee at Rs. 1.94 per kWh and accounted for towards its Renewable Purchase Obligation.
For green energy open access projects commissioned from April 1, 2027, banking would shift to a monthly settlement cycle. Consumers would be allowed to bank up to 30% of their total monthly consumption, subject to an 8% banking charge in kind. Withdrawal during off-peak hours between 09:00 and 17:00 would not attract a charge. Withdrawals during normal hours from 23:00 to 09:00 would attract a 10% charge, while peak-hour withdrawals between 17:00 and 23:00 would carry a 30% charge in kind.
The draft further proposes a seven-year waiver of transmission charges, wheeling charges, cross-subsidy surcharges and State Load Despatch Centre fees for open access projects above 5 MW commissioned after April 1, 2027.
Consumers with contract demand of up to 1 MVA would also be exempted from telemetry and remote terminal unit requirements until they become subject to deviation settlement mechanisms. For installations up to 5 kW, distribution strengthening costs would be included in the distribution licensee’s aggregate revenue requirement, reducing the upfront burden on small consumers.
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