The Gujarat Electricity Regulatory Commission (GERC) has notified the Grid Interactive Battery Energy Storage System regulations, 2026 to provide a framework for integrating battery energy storage into the state electricity network. The regulations aim to improve grid reliability, support renewable energy integration and help Gujarat meet its Energy Storage Obligation targets. The Commission sets out definitions, deployment models and procedural requirements for developers, utilities and consumers.

A Battery Energy Storage System (BESS) is defined as an electrochemical device that draws electricity from the grid or generators, stores it as chemical energy and supplies it back to the network when required. The regulations recognise deployment models such as co located with power plants, standalone grid connected facilities and storage embedded within transmission and distribution infrastructure. Consumers and prosumers may install battery systems under net metering and virtual net metering arrangements.

Technical requirements are prescribed for utility scale projects. Systems connected at 11 kV and above must have a minimum project size of one megawatt (MW) with at least two hours of storage, while smaller installations at distribution transformer level or those by individual consumers are exempt. Ownership is open to generating companies, transmission and distribution licensees and independent storage service providers, with procurement primarily through competitive bidding and tariffs discovered as availability based fixed charges.

All projects must register with the Gujarat Energy Development Agency (GEDA), and co located storage integrated with new renewable plants may be covered by the primary registration. The State Load Despatch Centre (SLDC) will schedule and dispatch grid connected BESS, with charging treated as drawal and discharging as injection, and standalone projects may undertake energy arbitrage, ancillary services and peak management. Developers must follow Central Electricity Authority technical standards, comply with cybersecurity and environmental protocols including the Battery Waste Management Rules, 2022, and consumer billing disputes will be handled by the Consumer Grievance Redressal Forum while other disputes will fall under the Commission.