Provisions on energy storage systems included in draft multi-year tariff regulations in Keralam

The Kerala State Electricity Regulatory Commission has introduced new draft regulations for energy storage systems, including battery and pumped storage projects. These rules establish a framework for tariffs and recognize storage developers as a new class of regulated entities.
Why it matters
This regulatory shift is essential for integrating large-scale renewable energy storage into the power grid, supporting the state's transition to sustainable energy.
With large-scale energy storage systems set to become a reality soon in Keralam’s power sector, the Kerala State Electricity Regulatory Commission (KSERC) has drawn up regulations for governing their operations.
Special provisions for the deployment and operation of energy storage systems are part of a draft multi-year tariff (MYT) regulations published by the KSERC on Monday. This is also the first time that provisions for energy storage systems have been proposed as part of the MYT regulations, KSERC officials said.
In the case of energy storage, the draft regulations cover aspects of community and collective energy storage services (ESS), tariffs for peak-hour support from ESS and operating parameters for ESS. Importantly, they also contain provisions for providing incentives for early commissioning of storage systems. Further, the draft recognises Energy Storage System Developers (ESSD) as a new class of regulated entities in the State’s power sector.
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