Law Updates

The Ministry of Power, Government of India, has issued a notification to amend the Electricity Rules, 2005. The new Electricity (Amendment) Rules, 2025, highlight the use and operation of Energy Storage Systems (ESS). According to the amendment, ESS can be used as independent systems or as part of power generation, transmission, or distribution. The rules clarify that ESS can be developed, owned, leased, or operated by generating companies, transmission licensees, distribution licensees, consumers, system operators, or independent service providers. If the ESS is located with a power station, transmission licensee, or consumer, it will have the same legal status as its owner. Even if not co-located, it will still hold the legal status of the owner but be treated as a separate storage element for scheduling and dispatch. The amendment also gives ESS owners the option to sell, lease, or rent storage capacity to utilities, consumers, or load dispatch centres.