The Central Electricity Regulatory Commission (CERC) has introduced the Terms and Conditions of Tariff (Second Amendment) Regulations, 2026 (notified around March 20, 2026), to accelerate integration of Integrated Energy Storage Systems (IESS) into India's grid. This framework provides a supplementary tariff structure for co-located battery storage systems, establishing fixed storage charges and energy charges to enhance grid reliability.

The Central Electricity Regulatory Commission (CERC) has introduced the Terms and Conditions of Tariff (Second Amendment) Regulations, 2026 (notified around March 20, 2026), to accelerate integration of Integrated Energy Storage Systems (IESS) into India's grid. This framework provides a supplementary tariff structure for co-located battery storage systems, establishing fixed storage charges and energy charges to enhance grid reliability. 

Key Features of the CERC 2026 Tariff Rules:-
Definition of IESS: -
Focuses on energy storage co-located with generating stations or transmission substations, connected via a common busbar.
Cost Recovery & Depreciation:-
 Lithium-ion battery systems have a defined 15-year life with straight-line depreciation at 6.33% per annum.
Operational Norms: -
Normative availability is set at 90%, with a round-trip efficiency threshold of 85%.
Degradation Factor: -
An annual capacity degradation of 2% is mandated for billing, subject to review.
Operational Expense (O&M):-
 Fixed at 2% of the admitted capital cost at the Commercial Operation Date (COD), escalating at 5.25% for the first two years.
Revenue Sharing: -
A 50:50 sharing mechanism is established for gains from energy storage operations, such as arbitrage or ancillary services, after recovering costs. 
These rules align with India's goal of expanding renewable energy by ensuring financial viability for battery storage systems (BESS). 
Does this summary cover the specific aspects of the CERC 2026 regulations .

MJF Lion ER YK Sharma 

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