No, 28/26:2021-RAR Government of india Ministry of Power SShram Shakt hawan, Rafi Marg ‘New Delhi, 20" January, 2022 Te 1. Secrotary, MIRE, New Deh, 2. The Ghatrparson, CEA, R K Puram, New Delhi 3. ACSIPrncipal Secretaries/ Secretaries (PowerlEnergy) of al Slate Governments/UTS. 4 Secretaries of All Sate Electicty Regulatory CommissionsiJERCs. 5. CMDMDs ofall Gencos/DiscomsTranscos, 8. Secretary, Central Electcty Regulatory Commission (CERC), Now Del 7. CMDIMDS ofall CPSUs under administrative conto of Ministry of Powers. MNRE Sub:- Clarification regarding usage of Energy Storage System(=SS) in various applications. across the entire value chain of Power Sector Reg, Sir In the ambitious journey of instating 175 GW of Renewable Energy b 2022 &500 GW of capacity from Nonossi sources by 2030, India has already achieved installation of 150 GW of, RE capacity. To meet this target itis pertinent to plan for optimum uiization of resources and ‘selection of right resource mix to meet the projected energy demand ofthe county maintaining ‘he energy security of the county 2. Inorder to integrate large volumes of Renewable Energy, Energy StorageSystem(ESS)s essential. Energy Storage System may be Battery Energy Storage System or Pumped Hydro Energy Storage System or phasechange energy systemincluding energy sto'age in the form of Green Hydrogen or Green Ammenia.Eneray Storage System (ESS) can play an important roe in ‘rid balancing inthe wake of large scale penetration of renewable energy in the power system. ‘can provide fast response / ramping up or downipeaking suppor, thereby enabling exit in the system operation, frming up of RE sources, energy shiing, enabing optimum J higher utlization of transmission network, enabling transmission and distibutin capex deferal, arbitrage, peak shiting ote. 3, Various stakeholders have been seeking clarifications about its statis ie whether itis Under generation or transmission or distribution. Its clanfied a follows: (0) The ESS isa pat ofthe power system defined under sub-section (50) af Secon 2 of the Electricity Act, 2003. a(i) ESS can be utlised either on standalone basie or in complementary with generation, transmission and distribution. ESS shall be accorded status based on its application ‘area ie, generation transmission and cstoution. (i) ESS can be utlised as generator, grid element or network asset. These assets can be veloped, owned, leased and operated by a generating company ar a transmission licensee or a distribution licensee or a system operator or a standalene energy storage service provider. When an ESS is owned and operated by and co-located with a ‘generating station or a transmission licensee or a distribution lcenese, i wil have the ‘same legal status as that of the ower. If such an ESS isnot co-located with, but owned ‘and operated by, the generating station or distribution licensee, the legal status shal sti be that ofthe owner but forthe purpose of scheduling and dispatch end other matters it willbe treated at par with a standalone ESS, (i) The developerouner of the ESS may sel/ lease / ent out the storge space in whole ‘rin part to any utlty engaged in generation or transmission or distitution; orto a Load Despatch Centre. The over of the ESS may use part / whole of the storage space hime to buy and store electricity and sellthe stored electricity at eter timelate, (u) The standalone ESS shal bea delcensed activity at par with a generating company. f the owner / developer seck to operate the ESS on a standalore basis it wil be registered with the Authocty (The Centra Electrcty Authotty), ging the capacity and the locaton, I wil also need to comply wth rules garding safety atc. as lad down by the Authority. The capacty shall be vecfied by the Authority (uA standalone ESS shall be granted connectivity under the Electsty (Transmiesion System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 202 ‘Yours faithfully, SA (Ghanshyam Prasad) Joint Secretary tothe Govt. of inca “Tet:2371 0189 Copy for information to 1. PS to Honible Minister of Power & NRE, APS to Hon'ble MeSP, Sr. PPS to Secretary, Mop. 2, All Additional Secretaries, Ministry of Power. 3. All Joint SecretariesfEconamic AdvserICE, Ministry of Power. ‘Gopy to:- Technical Director, NIC for uploading in Ministry's Website under ‘New Notices" with {he heacing of ‘Clarification regarding usage of Energy Storage System (ESS) in various applications across the entire value chain of power Sector”.