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Date: 2025-09-23 Category: Not Applicable State: Union Government Country: India

Electricity (Amendment) Rules, 2025

Issued by Ministry of Power · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document is a notification from the Ministry of Power, Government of India, published on September 19, 2025, in the Gazette of India. It announces amendments to the Electricity Rules, 2005, under the authority of Section 176 of the Electricity Act, 2003. These amendments concern the regulations surrounding energy storage systems. The rules come into force on the date of their publication in the Official Gazette. **Key Points / Main Content** * **Amendment to Rule 18 of the Electricity Rules, 2005:** * **Sub-rule (2) Replacement:** The Energy Storage System (ESS) can be used as an independent system or as part of generation, transmission, or distribution. * **Sub-rules (4) and (5) Replacement:** * **Ownership and Operation of ESS:** ESS can be developed, owned, leased, or operated by various entities, including generating companies, transmission/distribution licensees, consumers, system operators, or independent energy storage service providers. * **Co-located ESS Legal Status:** ESS co-located with a generating station, transmission/distribution licensee, or consumer will have the same legal status as that of the owner. However, if not co-located, it will be treated as a separate storage element for scheduling and dispatch purposes. * **ESS Capacity Usage:** The developer/owner has the option to sell, lease, or rent out the storage capacity to consumers, utilities, load dispatch centers, or other persons. **Impact Analysis** **Generating Companies, Transmission Licensees, Distribution Licensees, Consumers, System Operators, and Independent Energy Storage Service Providers** * **Impact:** Will be able to develop, own, lease, or operate energy storage systems and have expanded options regarding their utilization, sales, lease, and rental of storage capacity. The legal status of owned and co-located energy storage systems will be equivalent to that of the owner, with special consideration for scheduling and dispatch if not co-located. * **Action Required:** Review the amended Electricity Rules to understand the implications for their operations and business models, and adapt to the new regulatory landscape. **Load Despatch Centers and Other Persons** * **Impact:** Can potentially purchase, lease, or rent out energy storage capacity from developers or owners of ESS. * **Action Required:** To consider the possibilities to engage into new energy storage solutions and capacity management strategies.

Key Entities Referenced

Electricity Act, 2003: The primary legislation that empowers the Central Government to make rules regarding electricity. Electricity Rules, 2005: The rules being amended by this notification, originally issued under the Electricity Act, 2003. Ministry of Power: The central government ministry responsible for issuing the amendment. Energy Storage System: Subject of the amended rules, defining its utilization and ownership.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 xxxGIDHxxx सी.जी.-डी.एलxx.x-GअID.-E2x0xx0 92025-266274 CG-DL-E-20092025-266274 असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 611] नई दिल्ली, िुक्रिार, जसतम्ब र 19, 2025/भाद्र 28, 1947 1947 No. 611] NEW DELHI, FRIDAY, SEPTEMBER 19, 2025/BHADRA 28, 1947 1947 जिद्यतु मत्रं ालय अजधसचू ना नई दिल् ली, 19 जसतम्बर, 2025 सा.का.जन. 688(अ).––केंद्रीय सरकार, जिद्युत अजधजनयम, 2003 (2003 का अजधजनयम 36) की धारा 176 द्वारा प्रित्त िजियों का प्रयोग करते हुए जिद्युत जनयम, 2005 का और संिोधन करने के जलए जनम्नजलजखत जनयम बनाती ह,ै अर्ाात् - 1. सजं िप्त नाम और प्रारंभ -(1) इन जनयमों का संजिप्त नाम जिद्युत (संिोधन) जनयम, 2025 ह।ै (2) ये रािपत्र में उनके प्रकािन की तारीख को प्रिृत्त होंगे। 2. जिद्युत जनयम, 2005, के जनयम 18 म,ें- (i) उप-जनयम (2), के स्ट्र्ान पर जनम्नजलजखत उप-जनयम रखा िाएगा, अर्ाात:् - “(2) ऊिाा भंडारण प्रणाली का उपयोग या तो स्ट्ितंत्र ऊिा ा भडं ारण प्रणाली के रूप म ें या उत्पािन, पारेषण या जितरण के भाग के रूप म ेंदकया िाएगा।” (ii) उप-जनयम (4) और (5), के स्ट्र्ान पर जनम्नजलजखत उप-जनयम रखे िाएगं े, अर्ाात्:- “(4)(क) ऊिाा भडं ारण प्रणाली का जिकास, स्ट्िाजमत्ि, पट्टा या संचालन दकसी उत्पािन कंपनी या दकसी पारेषण अनुज्ञजप्तधारी या दकसी जितरण अनुज्ञजप्तधारी या दकसी उपभोिा या दकसी प्रणाली प्रचालक या दकसी स्ट्ितंत्र ऊिा ा भंडारण सेिा प्रिाता द्वारा दकया िाएगा। 6224 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (ख) दकसी उत्पािन स्ट्टेिन या दकसी पारेषण अनुज्ञजप्तधारी या दकसी जितरण अनुज्ञजप्तधारी या दकसी उपभोिा के स्ट्िाजमत्ि और संचालन िाली तर्ा उनके सार् सह-अिजस्ट्र्त ऊिाा भडं ारण प्रणाली की जिजधक प्राजस्ट्र्जत िही होगी िो स्ट्िामी की ह:ै परंत ु यदि ऐसी ऊिा ा भंडारण प्रणाली उत्पािन स्ट्टेिन या जितरण अनुज्ञजप्तधारी या उपभोिा के सार् सह-अिजस्ट्र्त नहीं ह,ै ककंतु उसके स्ट्िाजमत्ि में ह ै और उनके द्वारा प्रचाजलत है, तो जिजधक प्राजस्ट्र्जत तब भी िही होगी िो स्ट्िामी की है, ककंतु समय-जनधाारण और प्रेषण तर्ा अन्य मामलों के प्रयोिन के जलए इसे एक पृर्क भडं ारण तत्ि के समतुल्य माना िाएगा। (5) ऊिाा भडं ारण प्रणाली के जिकासकताा या स्ट्िामी के पास भंडारण िमता को पूणता ः या आंजिक रूप से दकसी उपभोिा को या उत्पािन या पारेषण या जितरण म ें लगी दकसी यूटटजलटी को या दकसी भार प्रषे ण केंद्र को या दकसी अन्य व्यजि को जिक्रय करने या पट्टे पर या दकराए पर िेने का जिकल्प होगा। ” [फा. सं. 23/2/2022-आरएंडआर] श्रीकांत नागलु ापल्ली, अपर सजचि टटप्पणी: मलू जनयम भारत के रािपत्र भाग II, खंड 3, उपखडं (i) म ें संखयांक सा.का.जन. 379(अ), तारीख 8 िून, 2005 द्वारा प्रकाजित दकए गए र् े और अंजतम बार संखयांक सा.का.जन. 181(अ), तारीख 12 माच,ा 2024 द्वारा संिोजधत दकए गए र्े। MINISTRY OF POWER NOTIFICATION New Delhi, the 19th September, 2025 G.S.R. 688(E).––In exercise of the powers conferred by section 176 of the Electricity Act, 2003 (Act 36 of 2003), the Central Government hereby makes the following rules further to amend the Electricity Rules, 2005, namely:- 1. Short title and commencement. - (1) These rules may be called the Electricity (Amendment) Rules, 2025. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Electricity Rules, 2005, in rule 18,- (i) for sub-rule (2), the following sub-rules shall be substituted, namely:- "(2) The Energy Storage System shall be utilised either as independent energy storage system or as part of generation, transmission or distribution.” (ii) for sub-rules (4) and (5), the following sub rules shall be substituted, namely:- “(4)(a) The Energy Storage System may be developed, owned, leased or operated by a generating company or a transmission licensee or a distribution licensee or a consumer or a system operator or an independent energy storage service provider. (b) The Energy Storage System owned and operated by and co-located with a generating station or a transmission licensee or a distribution licensee or a consumer, shall have the same legal status as that of the owner: Provided that if such an Energy Storage System is not co-located with, but owned and operated by, the generating station or distribution licensee or consumer, the legal status shall still be that of the owner but for the purpose of scheduling and dispatch and other matters it shall be treated at par with a separate storage element. (5) The developer or owner of the Energy Storage System, shall have an option to sell or lease or rent out the storage capacity in whole or in part to any consumer or utility engaged in generation or transmission or distribution or to a Load Despatch Centre or any other person.” [F. No. 23/2/2022-R&R] SRIKANT NAGULAPALLI, Addl. Secy. Note: The Principal rules were published in the Gazette of India Part II, Section 3, Sub-section(i), vide number G.S.R. 379(E), dated the 8th June, 2005 and were last amended vide number G.S.R 181(E), dated the 12th, March 2024. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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