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. Opera...