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Legal Central Ministry of Power Electricity Act, 2003

Notification regarding Central Electricity Regulatory Commission (Terms and Conditions of Tariff) (Second Amendment) Regulations, 2026

20-Mar-2026 | . L-1/268/2022/CERC

The Central Electricity Regulatory Commission (Terms and Conditions of Tariff) (Second Amendment) Regulations, 2026 introduce a comprehensive framework to incorporate integrated energy storage systems (ESS) particularly battery storage into tariff determination for generating stations and inter-state transmission systems. These amendments expand the scope of existing tariff regulations to include ESS, define key technical and operational parameters (such as auxiliary consumption, round-trip efficiency, state of charge, and declared capacity), and prescribe a useful life of 15 years for lithium-ion battery systems. They also mandate separate tariff mechanisms, including supplementary fixed storage charges and energy charges, to be determined based on capital expenditure and operational parameters. Generating companies and transmission licensees are required to file tariff petitions within 90 days of commercial operation of the ESS. Overall, the regulations aim to enable grid reliability, flexibility, and efficient energy management by formally integrating storage systems into the regulatory tariff framework. The amendments in Regulations 51 and 52 shall be applicable from 1.4.2024.

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