CHENNAI: The Central Electricity Regulatory Commission (CERC) has invited stakeholder suggestions on proposed amendments relating to Integrated Energy Storage Systems (IESS) under the Electricity Act, 2003. Around 42 stakeholders submitted comments, and the commission recently held consultations with them.
According to details available on the CERC website, the Tamil Nadu Power Distribution Corporation Limited (TNPDCL), in its submission on the Draft CERC (Terms and Conditions of Tariff) (Second Amendment) Regulations, 2025, pointed out that the absence of clear legal recognition for IESS as a distinct entity has created multiple challenges.
TNPDCL flagged ambiguity in licensing and regulatory oversight, confusion over cost-sharing among generation, transmission and distribution segments, and the lack of a clear mechanism to recover capital and operational expenditure. It argued that energy storage should be treated separately from generation, transmission and distribution, and granted independent legal status. Such clarity, it said, would enable appropriate policy framing, ensure uniform regulations nationwide and provide long-term confidence to investors, thereby attracting higher investment.
The utility emphasised that expanding storage capacity is vital to support India’s renewable energy goals and maintain grid stability.
The Bharathiya Electricity Engineers Association (BEEA) backed large-scale storage deployment but opposed proposals to implement certain provisions retrospectively from April 1, 2024.
Reopening settled bills, it said, could disrupt discom finances and raise tariffs. It urged safeguards and stressed that higher costs of older systems should not burden consumers.