Background
Gujarat Electricity Regulatory Commission (Grid Interactive Battery Energy Storage System) Regulations, 2026 were notified vide Notification No. 10 of 2026, published in the Gujarat Government Gazette (Extraordinary) on October 16, 2026, under Section 181(2) of the Electricity Act, 2003. The Regulations establish Gujarat’s first dedicated framework for the registration, connectivity, operation, scheduling and safety of grid-interactive BESS, covering co-located and standalone BESS, Consumer/Prosumer installations and Aggregators.
Framework mandates GEDA registration for BESS connected to intra-State networks, prescribes a minimum capacity of above 1 MW with at least two hours of storage at 11 kV or above, and treats charging and discharging as drawal and injection for scheduling and energy accounting. Co-located BESS operates as part of the generating station, while standalone BESS is scheduled independently under the Intra-State ABT/DSM mechanism. SLDC directions on despatch and curtailment are binding, with grid security receiving priority in multi-use operations. Safety, cyber security and battery disposal obligations are governed by applicable CEA, MeitY, MoP and Battery Waste Management requirements. No amendments have been notified so far. The Regulations prescribe no independent penalties; contraventions are enforceable under Sections 142 and 146 of the Electricity Act, 2003.
Applicability
Regulations apply to all BESS projects connected to the intra-State transmission or distribution network in Gujarat, with obligations falling on: Generating Companies and Captive Generating Plants, which may install only co-located BESS charged from the associated plant, must schedule it as part of the station and keep total injection within the granted quantum; Standalone BESS Developers, who are restricted to storage services for licensees, market sales and Ancillary Services and must schedule independently, earmark capacity for each function and keep separate accounts; Consumers/Prosumers, including those under net metering and similar arrangements, who must register with GEDA, obtain licensee permission and meet CEA connectivity standards before commissioning; Aggregators, who must be registered with or appointed by the Distribution Licensees; Transmission and Distribution Licensees in their system-planning and certification roles; owners of pre-existing BESS, who must hold a valid BESPA and GEDA registration; and all BESS owners and operators, who must follow SLDC directions and the safety, cyber security, data-submission, commissioning, battery-disposal and Open Access requirements.
Compliance Requirements under the Rules in accordance with the Code
Following section sets out the key compliance obligations under the GERC (Grid Interactive Battery Energy Storage System) Regulations, 2026, along with the applicable penalty framework.
All types of BESS projects connected to the Intra-State Transmission Network or Distribution Network and to be installed in the State of Gujarat are required to be registered with the Gujarat Energy Development Agency (GEDA). No separate registration is required for a BESS which is integrated and installed as part of a new Renewable Energy project, subject to the condition that the registration of such Renewable Energy project clearly includes the BESS component, its capacity, configuration, technical particulars, location and interconnection details as may be required under the Standard Operating Procedure (SOP) to be published by GEDA.
Every Consumer/Prosumer installing a BESS, including those availing Net Metering, Gross Metering, Net Billing, Group Net Metering or Virtual Net Metering arrangements, shall register itself with GEDA before commissioning the BESS. Such installations shall also comply with the applicable technical standards and connectivity requirements specified by the CEA and other relevant Regulations in force, and the Consumer/Prosumer shall take prior permission of the Distribution Licensee/Transmission Licensee before commissioning.
Every Consumer/Prosumer installing a BESS shall take prior permission of the Distribution Licensee/Transmission Licensee before commissioning the BESS, in addition to registering itself with GEDA. Such installations shall comply with the applicable technical standards and connectivity requirements specified by the CEA and other relevant Regulations in force.
Aggregators aggregating BESS resources from grid-connected standalone storage across multiple sites shall be registered with or appointed by the Distribution Licensees and shall follow the protocols issued by the SLDC. The SLDC, in consultation with the Distribution Licensees and other concerned licensees, shall specify the minimum technical and financial eligibility criteria, registration procedure, applicable fees and other related terms and conditions for registration of Aggregators, in accordance with the Ancillary Services Regulations to be notified separately by the Commission.
Where a BESS is integrated and installed as part of a new Renewable Energy project and no separate registration is obtained for it, the developer shall ensure that the registration of such Renewable Energy project with GEDA clearly includes the BESS component, its capacity, configuration, technical particulars, location and interconnection details as may be required under the SOP to be published by GEDA.
The Regulations apply to BESS developed and deployed under them. BESS projects which were commissioned, or were under construction or execution, prior to the notification of these Regulations shall be governed by these Regulations subject to the condition that such projects have a valid Battery Energy Storage Purchase Agreement (BESPA) with the concerned Distribution Licensee and are registered with GEDA.
BESS may be deployed and operated under one or more business models, including co-location with new or existing Renewable or Conventional Generators. A Generating Plant/Captive Generating Plant shall, however, be allowed to install only a co-located BESS, which shall be charged using electricity generated from the associated Generating Plant/Captive Generating Plant.
A co-located BESS shall be charged only through its associated Generating Station. For the purpose of scheduling, despatch and energy accounting, (a) charging of a BESS from the grid shall be treated as drawal of electricity, and (b) discharging of a BESS into the grid shall be treated as injection of electricity.
Where a Generating Plant/Captive Generating Plant draws electricity from the grid for charging of the BESS, it shall maintain a corresponding Contract Demand with the Distribution Licensee, in which case the energy drawn for charging the co-located BESS, or for any other purpose permitted under the applicable Orders/Regulations of the Commission, will be charged at the applicable category-specific tariff. Where such drawal is found to be made without maintaining the corresponding Contract Demand, the electricity so consumed shall be charged at the applicable HT or LT Temporary Supply tariff, as the case may be.
Grid-connected Standalone BESS is a recognised business model under the Regulations. Such projects shall be permitted only for providing Storage Services to Licensees, selling power into the Power Market and/or participating in Ancillary Services.
A Standalone BESS shall not be permitted to provide storage services to Renewable Energy power projects in the State that are set up for captive use or for the sale of energy to third-party consumers.
Subject to Regulation 6.1, a standalone BESS may serve multiple functions, provided that the capacity allocated to each function is earmarked accordingly and each allocated capacity abides by its own commitments so as not to violate the commitments of any other earmarked allocation.
All entities shall consider the deployment of BESS as an integral component of system planning, resource adequacy and grid flexibility enhancement. The planning, procurement and deployment of BESS shall be undertaken in a manner that ensures (a) optimal utilisation of storage capacity; (b) efficient integration of Renewable Energy sources; (c) enhancement of system reliability, resilience and security; (d) economic efficiency in comparison with alternative solutions; and (e) alignment with applicable policies, including Energy Storage Obligations (ESO) and Renewable Energy targets.
The minimum individual BESS project size shall be above 1 MW (power rating), with a corresponding energy storage rating of at least two hours, and the project shall be connected at 11 kV or above. This minimum size does not apply to BESS installed at the Distribution Transformer (DTR) level, BESS co-located with Generating Plants/Captive Generating Plants, or BESS installed by Consumers/Prosumers under Net Metering, Gross Metering, Net Billing, Group Net Metering or Virtual Net Metering arrangements. For BESS co-located with existing Generating Stations, the minimum energy rating may be reduced to less than two hours where the primary application is Ancillary Services/Frequency Regulation.
The technical standards for construction of BESS and its safety aspects shall be guided by the CEA (Technical Standards for Construction of Electrical Plants and Electric Lines) Regulations, 2022, and other applicable norms/Regulations, as amended from time to time.
A Captive Generating Plant (CGP) carries the meaning assigned to it under the Electricity Act, 2003, and the captive status of a CGP with a co-located BESS shall be determined in accordance with the applicable captive policy framework and the relevant Regulations, Rules or Orders, as amended from time to time. Generating entities may procure or develop BESS through (a) competitive procurement, or (b) third-party arrangements, including leasing or service contracts. Where a Captive Consumer installs a BESS, the verification of captive status shall be carried out for the project as a whole in accordance with the Electricity Rules, 2005, as amended from time to time, and other applicable Regulations and Orders.
A co-located BESS shall be operated as part of the Generating Station for the purpose of scheduling and despatch, unless otherwise specified. Scheduling shall be undertaken as part of the associated Generating Station, and such BESS shall not be scheduled as a separate entity, subject to the provisions of applicable Regulations.
Where a BESS is co-located and integrated with a Thermal or Renewable Energy Generating Station, no separate connectivity/Open Access approval is required for the BESS so long as the total injection at the interconnection point does not exceed the Connectivity Capacity/Open Access quantum granted to that Generating Station. The total injection from the project, including injection from the Generating Station and the BESS component, shall not exceed the Connectivity Quantum/Sanctioned Capacity/Open Access quantum granted to the project, as applicable. Such integration is further subject to compliance with the applicable Grid Code, connectivity, metering, protection, scheduling and communication requirements and the Orders/Regulations of the Commission. Any injection beyond the granted quantum shall be treated as inadvertent injection, shall not be eligible for any commercial settlement, and shall attract action under the Gujarat Electricity Grid Code.
Standalone BESS Developers may establish storage systems at locations identified on the basis of market opportunities, grid requirements or contractual arrangements. Such planning shall consider (a) proximity to load centres or renewable generation; (b) grid connectivity; and (c) market participation opportunities.
A Standalone BESS shall be treated as an independent entity for scheduling, despatch and market participation as per the prevailing Regulations. It shall be scheduled as an independent entity for charging and discharging of energy in line with the applicable Intra-State Availability Based Tariff (ABT)/Deviation Settlement Mechanism (DSM) specified under the relevant Regulations and Orders of the Commission, as amended from time to time, and its scheduling and despatch requirements shall be governed by that mechanism.
A Standalone BESS shall submit schedules for (a) charging; (b) discharging; and (c) Ancillary Services, where applicable.
All grid-connected BESS shall be operated in accordance with the provisions of the Gujarat Electricity Grid Code and other applicable Regulations.
The operation of BESS shall be governed by the CEA (Technical Standards for Connectivity to the Grid) Regulations, 2007, as amended from time to time, and shall, inter alia, adhere to the following principles: (a) grid security and reliability shall have overriding priority; (b) optimal utilisation of storage capacity shall be ensured; (c) compliance with contractual obligations shall be maintained; (d) efficient participation in electricity markets and Ancillary Services shall be enabled; (e) balancing of generation and consumption; and (f) reactive power compensation.
All grid-connected BESS shall be scheduled and despatched in accordance with these Regulations and the applicable scheduling and despatch procedures under the Gujarat Electricity Grid Code, as well as other applicable Orders/Regulations of the Commission, as amended from time to time.
The scheduling and forecasting requirements applicable to a Renewable Energy (RE) Generating Station with a co-located BESS shall be governed by the GERC (Forecasting, Scheduling, Deviation Settlement and Related Matters of Solar and Wind Generation Sources) Regulations, 2019, as amended from time to time, and other applicable Regulations and Orders of the Commission. The BESS may be utilised for firming, smoothing and time-shifting of renewable energy, subject to compliance with the applicable scheduling, despatch and deviation settlement provisions notified by the Commission.
The scheduling and despatch requirements of a Conventional Generating Station with a co-located BESS shall be governed by the applicable Intra-State Availability Based Tariff (ABT)/DSM mechanism specified under the relevant Regulations and Orders of the Commission, as amended from time to time.
The SLDC has overriding authority to issue despatch instructions to all grid-connected BESS during grid disturbance in the interest of grid security and reliability, notwithstanding the contractual arrangements of the BESS Operator, and every BESS Operator shall comply with such instructions. In normal scenarios, scheduling shall be carried out as per these Regulations.
A BESS Developer designated or contracted for the provision of Ancillary Services shall comply with the despatch instructions issued by the SLDC for such services.
A BESS Developer may provide Ancillary Services as a standalone resource, as part of a Generating Station or through aggregation, subject to compliance with the technical and operational requirements specified by the SLDC under the Ancillary Services framework to be specified by the Commission.
Where a BESS is deployed for multiple uses, its operation shall be subject to technical feasibility, contractual obligations and system constraints. In case of competing requirements, priority shall be given in the following order: (a) grid security and reliability; (b) Ancillary Service obligations; (c) contractual commitments; and (d) market participation.
Revenues and performance obligations for different services shall be accounted for separately to prevent double accounting or double recovery of benefits or liabilities.
The SLDC may curtail or reschedule the operation of a BESS in the interest of (a) grid constraints or grid security; (b) system reliability; or (c) emergency conditions. Such directions shall be binding on all BESS Operators.
BESS installations shall conform to the technical standards specified by the Central Electricity Authority (CEA) and the policies and guidelines issued by the Ministry of Power and the Ministry of New and Renewable Energy (MNRE), Government of India, and other relevant authorities. They shall also abide by the relevant Rules and Regulations framed under the Electricity Act, 2003, including the Indian Electricity Grid Code (IEGC), grid connectivity standards and other relevant Rules/Codes/Procedures issued by the Commission from time to time.
BESS providers shall submit real-time and periodic data to the SLDC in the prescribed format notified by the SLDC and approved by the Commission.
The procedure for first-time charging, testing and commissioning of BESS shall be as specified in the Gujarat Electricity Grid Code, as amended from time to time, and shall be followed by the BESS owner before commercial operation.
BESS systems shall comply with the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2023, the Central Electricity Authority (Safety Requirements for Construction, Operation and Maintenance of Electrical Plants and Electric Lines) Regulations, 2022, each as amended from time to time, and other applicable standards and codes.
The BESS owner shall ensure that the cyber security and communication protocols of the BESS adhere to the guidelines of the Ministry of Electronics and Information Technology (MeitY), the Central Electricity Authority (CEA) and the Ministry of Power (MoP).
Environmental management and end-of-life disposal of batteries shall be carried out in accordance with the Battery Waste Management Rules, 2022, or any other guidelines/regulations of the Government of India or the Government of Gujarat, as amended from time to time. The responsibility for disposal lies with the owner of the BESS.
All Consumers/Prosumers, including those availing Net Metering, Gross Metering, Net Billing, Group Net Metering or Virtual Net Metering arrangements, are allowed to install a BESS in accordance with the applicable Regulations of the Commission, as amended from time to time. Such installations shall comply with the applicable technical standards and connectivity requirements specified by the CEA and other relevant Regulations in force.
Any deviation from the prescribed technical standards shall be rectified by the BESS developer and certified by the concerned Distribution Licensee or State Transmission Utility prior to synchronisation with the grid. A BESS operating in complete isolation from the grid is not subject to these requirements relating to intimation, inspection or certification.
Open Access to BESS and the related charges shall be governed by the GERC (Terms and Conditions of Intra-State Open Access) Regulations, 2011 and the GERC (Terms and Conditions for Green Energy Open Access) Regulations, 2024, together with other Orders/Regulations of the Commission, each as amended from time to time, as applicable.
Penalty and Consequences
Section 142 of the Electricity Act, 2003 — Penalty for Contravention of the Act, Regulations or Directions
If, on receipt of a complaint or otherwise, the Appropriate Commission is satisfied that any person has contravened any provision of the Act or the rules or regulations made under it, or any order or direction issued under the Act, it may, after giving such person an opportunity of being heard, direct by written order that the person pay a penalty of not less than ₹10,000, which may extend to ₹5,00,000 for each contravention. In case of a continuing failure, an additional penalty of not less than ₹1,000, which may extend to ₹10,000, is payable for every day during which the failure continues after contravention of the first such direction.
Section 146 of the Electricity Act, 2003 — Punishment for Non-compliance of Orders or Directions
Whoever fails to comply with any order or direction given under the Act within the time specified in it, or contravenes, attempts to contravene or abets the contravention of any provision of the Act or the rules or regulations made under it, shall be punishable with a fine of not less than ₹10,000, which may extend to ₹10,00,000. In case of a continuing failure, an additional fine of not less than ₹1,000, which may extend to ₹50,000, is payable for every day during which the failure continues after conviction for the first such offence.
Regulation 6.1(i), second proviso and Regulation 13.2, second proviso of the GERC (Grid Interactive BESS) Regulations, 2026 — Grid Charging without Contract Demand
Where a Generating Plant/Captive Generating Plant is found to be drawing electricity from the grid for charging its BESS without maintaining a corresponding Contract Demand with the Distribution Licensee, the electricity so consumed shall be charged at the applicable Temporary Supply tariff, that is, the HT or LT Temporary Tariff, as the case may be.
Regulation 8.3, second proviso of the GERC (Grid Interactive BESS) Regulations, 2026 — Injection beyond Granted Quantum
Any injection by a co-located project beyond the granted Connectivity Quantum/Sanctioned Capacity/Open Access quantum shall be treated as inadvertent injection, shall not be eligible for any commercial settlement, and shall additionally attract action in accordance with the Gujarat Electricity Grid Code, as amended from time to time.
Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article.
