What this means
Gujarat's first dedicated framework for battery storage: how BESS is planned, owned, procured and paid for across generation, transmission, distribution and standalone deployments, plus open access and aggregator rules. Published as a draft on 12 May 2026 — not yet in force.
What changed
Until this draft, battery storage in Gujarat sat in the gaps between generation, open-access and tariff rules — there was no dedicated framework for it. GERC’s draft Battery Energy Storage System (BESS) Regulations, 2026 define a BESS as any electrochemical device that absorbs electricity from the grid or generation, stores it, and discharges it on demand, and set out how such systems are planned, procured, owned, operated and settled — Gujarat’s first standalone storage rulebook.
It applies broadly: generating companies, transmission and distribution licensees, standalone BESS developers, captive plants, consumers or prosumers with storage, and aggregators are all covered. Every grid-connected BESS must register with GEDA, unless storage is already declared as part of a new renewable energy project’s registration.
Who this affects
- Commercial & industrial consumers — behind-the-meter storage becomes usable for peak shaving and bill management (subject to DISCOM approval), open access to third-party storage is introduced, and aggregators can pool a site’s battery capacity for grid-service revenue.
- Developers & generators — standalone storage of at least 1 MW / 2-hour duration can participate in arbitrage and ancillary services, and BESS co-located with captive or RE plants can firm up otherwise-variable output.
- Residential consumers — a battery paired with rooftop solar is recognised under net, gross, group and virtual metering, and is exempt from the 1 MW minimum size that applies to grid-scale storage.
- DISCOMs & government — distribution- and transmission-linked BESS can be procured competitively for resource adequacy, peak management and RE integration, hosted on public land or at substations.
Four ways to deploy BESS in Gujarat
The draft treats storage differently depending on where it sits in the system — each model carries its own planning, procurement and scheduling rules.
| Model | Typical use |
|---|---|
| Generation-linked | Co-located with a renewable or conventional plant for firming and despatchability; scheduled as part of the host station. |
| Transmission-linked | Part of the state transmission plan — congestion management and deferring network build-out, under SLDC control. |
| Distribution-linked | Deployed at substation, feeder or consumer level for peak management, loss reduction and voltage support. |
| Standalone | Independent storage trading in energy, capacity and ancillary-service markets under merchant or bilateral contracts. |
Standalone/grid-scale BESS must be at least 1 MW with 2-hour energy rating, connected at 11 kV or above — this minimum does not apply to distribution-transformer-level units, captive co-located storage, or consumer/prosumer storage under net/gross/virtual metering.
Ownership, procurement & cost recovery
BESS may be owned by generating companies, transmission or distribution licensees, independent power producers, captive plants, RE developers, independent storage providers, consumers, prosumers, or aggregators — the asset takes the legal status of whoever owns it.
The default procurement route is competitive bidding under Section 63 of the Electricity Act, with tariff discovered as an availability-based fixed charge following the Ministry of Power’s March 2022 guidelines (or their Gujarat-adopted equivalent). Section 62 cost-plus procurement is allowed only in exceptional cases with the Commission’s prior approval. Licensees may also evaluate BESS as an alternative to conventional network augmentation, backed by a techno-commercial cost-benefit case submitted for Commission approval.
Open access, aggregators & revenue stacking
Open access and related charges for BESS follow the same framework C&I consumers already use for Green Energy Open Access — the GERC Intra-State Open Access Regulations, 2011 and the Green Energy Open Access Regulations, 2024 — now extended to storage.
DISCOM-registered aggregators may pool standalone BESS across multiple sites to provide grid services, opening participation to smaller consumers who couldn’t otherwise meet minimum size thresholds alone. A single standalone BESS may also serve multiple functions — arbitrage, ancillary services, peak management, congestion relief — provided capacity is earmarked per function and revenue is accounted separately to prevent double recovery. When functions compete for the same capacity, the draft fixes a priority order: grid security first, then ancillary obligations, then contractual commitments, then market participation — with SLDC holding override control during contingencies.
Safety, prosumer storage & end-of-life
Consumers and prosumers under net/gross/group/virtual metering may install BESS at their premises — standalone or paired with renewable generation — with prior DISCOM approval and GEDA registration. Storage integrated with EV charging is recognised, including Vehicle-to-Grid and Grid-to-Vehicle services. All systems must comply with CEA safety regulations (2023), CEA technical standards (2022), and MeitY/CEA/MoP cybersecurity guidelines, with real-time data reporting to SLDC. Battery disposal follows the Battery Waste Management Rules, 2022, with responsibility resting on the BESS owner.
What happens next
- 12 May 2026 — Draft BESS Regulations published for stakeholder consultation.
- Now — Public comments open; project sizes, procurement routes and settlement mechanisms as drafted may still change before notification.
- Post-notification — SLDC and GEDA are expected to frame detailed operating procedures (scheduling, ancillary services, pool accounting) over the following 1–4 months before the framework is fully operational.
Sources & references
- Draft GERC (Grid Interactive Battery Energy Storage System) Regulations, 2026, Gujarat Electricity Regulatory Commission, published 12 May 2026 under the Electricity Act 2003 (ss. 61, 66, 86, 181). Full draft and consultation details at gercin.org. This page summarises the draft for reference and is not legal advice — refer to the official regulation for binding text.
Quick answers
- Is this regulation already in force?
- No. This is a draft published for public consultation on 12 May 2026 and has not been notified. Provisions may change before it takes effect.
- Does this apply to rooftop solar with a home battery?
- Yes, but on easier terms than grid-scale storage — residential prosumer storage under net/gross/virtual metering is exempt from the 1 MW minimum size that applies to standalone BESS.
- Can I combine battery storage with an existing Open Access contract?
- The draft extends the existing GERC Open Access framework (2011 and 2024 regulations) to storage, so C&I consumers already using open access would apply the same rules to a co-located or third-party BESS.