The Gujarat Electricity Regulatory Commission (GERC) has finalized the Gujarat Electricity Regulatory Commission (Grid Interactive Battery Energy Storage System) Regulations, 2026, establishing a regulatory framework for integrating Battery Energy Storage Systems (BESS) into Gujarat’s electricity grid. The regulations aim to improve grid stability, enhance operational flexibility, and support the growing integration of renewable energy sources, particularly solar and wind power, whose generation depends on weather conditions.
The new framework aligns with guidelines issued by the Ministry of Power, Government of India, which recognize energy storage as an important component of electricity generation, transmission, distribution, and ancillary services. Battery energy storage systems can help balance electricity supply and demand by storing surplus power and releasing it when required, thereby supporting reliable grid operations.
GERC initiated the regulatory process by publishing the draft regulations on May 12, 2026. The Commission subsequently conducted a public consultation process to gather feedback from stakeholders. Written comments and objections were received from 20 stakeholders, followed by a public hearing on June 15, 2026. The finalized regulations incorporate the Commission’s decisions on key aspects of BESS procurement, project registration, operating models, charging arrangements, and grid control.
Under the finalized framework, electricity distribution licensees and other applicable licensees are primarily required to procure BESS capacity through competitive bidding under Section 63 of the Electricity Act, 2003. This approach is intended to promote transparent procurement and cost-effective tariff discovery. Procurement under Section 62 will be permitted only in exceptional circumstances, subject to prior approval from the Commission and the submission of adequate techno-commercial justification.
The regulations also establish registration and minimum project-size requirements for grid-connected battery storage installations in Gujarat. All grid-connected BESS projects must register with the Gujarat Energy Development Agency (GEDA). For standalone installations, the minimum individual project size has been specified as above 1 MW in power capacity, with an energy storage duration of at least two hours. Such projects must connect to the electricity network at 11 kV or higher.
The framework allows battery storage systems to operate under different business models, including co-located projects alongside renewable energy plants, standalone installations, systems embedded within transmission or distribution networks, and consumer or prosumer arrangements. These provisions are intended to accommodate different applications of energy storage across the power sector.
For co-located BESS installations, the Commission has specified that charging must take place exclusively from the associated renewable energy plant. This restriction is designed to avoid complications in energy accounting and Renewable Purchase Obligation (RPO) compliance. Grid charging without the appropriate contract demand will attract temporary supply tariffs, discouraging unauthorized electricity consumption through the grid.
The regulations also clarify the role of the State Load Despatch Centre (SLDC) in maintaining grid security. The SLDC will retain overriding authority to issue dispatch instructions to all grid-connected BESS during grid disturbances, helping safeguard system reliability.
With these regulations, Gujarat has established a framework for the controlled deployment and operation of battery energy storage systems. The measures are expected to support renewable energy integration, improve grid flexibility, and strengthen the state’s ability to manage changing electricity demand and generation patterns.
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