Rajasthan Makes Energy Storage Mandatory for Renewable Projects Above 5 MW

Rajasthan Makes Energy Storage Mandatory for Renewable Projects Above 5 MW

The Rajasthan Electricity Regulatory Commission (RERC) has introduced a landmark amendment that aims to strengthen renewable energy integration and ensure long-term grid stability. According to the new regulation, all upcoming renewable energy projects in the state, with an installed capacity of more than 5 MW (excluding hydroelectric projects), must install energy storage systems (ESS) equivalent to at least 5% of their capacity, with a minimum of two hours of storage.


This decision comes at a time when Rajasthan is emerging as a renewable energy hub, with its vast solar and wind potential. However, grid instability and curtailments have posed significant challenges. By mandating ESS, the state is taking a crucial step toward building a more reliable and flexible renewable energy ecosystem.



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Green Open Access and Storage Requirements


The new rules also empower consumers by broadening the scope of green open access. Consumers with a contract demand or sanctioned load of at least 100 kW, either through a single connection or multiple connections in the same division, are now eligible for green open access projects.


Captive renewable energy projects can procure up to 200% of their contract demand. However, projects with a contract demand between 100% and 200% must install battery energy storage systems for at least 20% of the excess generation beyond their contract demand. These storage systems will require separate metering to record charging and discharging activities.


This ensures that the grid can absorb higher levels of renewable energy without compromising stability, while also encouraging industries to adopt cleaner and more sustainable power.



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Banking and Scheduling Reforms


To further support renewable adoption, the policy introduces flexible banking provisions. Renewable energy projects with a capacity of up to 100% of the contract demand can bank up to 25% of the energy injected or 30% of monthly consumption, whichever is higher, on an annual basis.


Projects between 100% and 200% of the contract demand can bank up to 30% of their monthly electricity consumption, with banking allowed on a billing cycle basis. This offers businesses greater flexibility in managing their energy usage and costs.


In terms of scheduling, consumers are required to submit block-wise schedules for both injection and drawal of power. These schedules must remain uniform across at least 12 time blocks. Such measures are designed to minimize demand fluctuations, reduce deviations, and improve the overall efficiency of the power system.



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Curtailment Rules and Grid Security


The framework also clarifies how power will be curtailed in case of transmission constraints or grid instability. Short-term transactions will be curtailed first, followed by medium-term and then long-term transactions. Intrastate projects will face curtailment before interstate projects.


This structured approach not only prioritizes grid security but also provides clarity to stakeholders regarding their rights and obligations.



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A Path Toward a Greener Rajasthan


With this progressive policy, Rajasthan is setting a benchmark for renewable energy adoption in India. By mandating energy storage, improving open access, and introducing banking and scheduling reforms, the state is addressing key challenges in renewable integration.


These measures will not only enhance the reliability of renewable power but also attract more investment into the state’s clean energy sector. Ultimately, this move strengthens Rajasthan’s position as a leader in India’s renewable energy transition.

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