Hyderabad – The Andhra Pradesh Electricity Regulatory Commission (APERC) has notified comprehensive Battery Energy Storage Systems (BESS) Regulations 2025, establishing a robust framework for energy storage deployment across the state. The regulations set ambitious targets for integrating 25 GWh of battery storage capacity by 2029, positioning Andhra Pradesh as a leader in India’s energy storage market development.
Comprehensive Regulatory Framework for Energy Storage
The BESS regulations establish a minimum project size of 1 MW with at least two hours of storage duration, creating standardized parameters for commercial-scale energy storage deployments. The framework applies across diverse stakeholder categories including Distribution Companies (DISCOMs), transmission licensees, Independent Power Producers (IPPs), renewable energy developers, aggregators, and independent storage providers.
The regulations enable multiple ownership and deployment models, including co-located storage with renewable projects, standalone grid-connected systems, embedded network storage, and behind-the-meter installations. This comprehensive approach ensures flexibility in storage deployment while maintaining grid stability and operational efficiency.
Strategic Integration with Renewable Energy Goals
Andhra Pradesh’s BESS regulations align with the state’s renewable energy targets and grid modernization objectives, addressing the intermittency challenges associated with solar and wind power generation. The 25 GWh storage target by 2029 represents substantial capacity that can significantly enhance grid flexibility and renewable energy utilization.
The regulatory framework supports various grid services including peak shaving, load balancing, frequency regulation, and voltage support. These ancillary services are critical for maintaining grid stability as renewable energy penetration increases, making battery storage an essential component of the state’s energy infrastructure.
Market Development and Investment Attraction
The clear regulatory framework provides investment certainty for energy storage developers and technology providers, potentially attracting significant capital to Andhra Pradesh’s energy storage sector. The regulations establish transparent processes for licensing, interconnection, and operations, reducing regulatory risk for investors.
APERC’s proactive approach to energy storage regulation positions Andhra Pradesh to benefit from the rapidly declining costs of battery technology while building expertise in storage operations and maintenance. This early mover advantage can establish the state as a hub for energy storage manufacturing and deployment.
