The state now requires all green open access power projects above 5MW to include battery energy storage systems, the move aims to boost grid stability and accelerate the state’s renewable energy transition.
In a significant regulatory move, the state of Rajasthan has officially implemented the Central Green Open Access (OA) Rules, 2022, with its own updated framework—aimed at boosting the renewable energy (RE) market. A key highlight of Rajasthan’s new Green Open Access (GEOA) rules is the compulsory integration of battery energy storage systems (BESS) for all renewable power projects exceeding 5 MW in capacity.
Under these rules, any green OA project over 5 MW must include a battery storage system capable of storing at least 5% of the plant’s capacity for a minimum of two hours. This requirement also applies to captive projects where the RE plant size is greater than the user’s contracted electricity demand.
Key Highlights of the Policy:
- The allowed size for captive renewable projects has been doubled to match twice the consumer’s contract demand.
- Rajasthan is the first Indian state to mandate BESS for large green open access projects.
- A minimum BESS of 5% capacity earns a 75% exemption on transmission and wheeling charges.
- Projects with BESS sized at 30% of plant capacity are eligible for 100% charge exemption.
- These financial incentives apply only to the first 2000 MW of BESS deployments or until the year 2030, whichever comes earlier.
While the policy has been positively received, industry experts have raised concerns about a lack of clarity around various OA charges. One particularly vague category—“Any other charges”—could introduce financial unpredictability, potentially deterring investment. Additionally, while consumers paying fixed charges are exempt from the “Additional Surcharge,” this may still apply in cases where distribution companies (DISCOMs) are unable to recover their costs.
The new GEOA regulations are expected to strengthen Rajasthan’s renewable infrastructure and encourage the adoption of energy storage in the Commercial & Industrial (C&I) sector. When combined with industrial incentives from the state’s “Rajasthan Investment Promotion Scheme 2024,” these rules are likely to catalyze further growth in the green power segment. Looking forward, Rajasthan’s regulatory model could influence similar updates in states like Maharashtra and Gujarat. The inclusion of BESS in policy frameworks marks a major shift, reinforcing the importance of energy storage in supporting India’s clean energy and decarbonization goals.
