Provisions on energy storage systems included in draft multi-year tariff regulations in Keralam

The Kerala State Electricity Regulatory Commission (KSERC) has drafted regulations governing the operation of large-scale energy storage systems in Keralam's power sector. This is a first-of-its-kind move, with provisions for energy storage systems now included in the draft multi-year tariff (MYT) regulations. The draft MYT, valid from 2027-28, covers aspects of community and collective energy storage services, tariffs for peak-hour support from energy storage systems (ESS), and operating parameters for ESS.

It also introduces Energy Storage System Developers (ESSD) as a new class of regulated entities. The draft recognises BESS, pumped storage projects (PSP), and other storage systems, including their tariff determination. The existing MYT regulations will end in March 2027, making way for the new draft. Keralam's solar power capacity, which has been hindered by the absence of large-scale energy storage systems, could now benefit from the proposed regulations.

The state government's revised budget for 2026-27 includes plans for installing large-scale battery storage systems to meet peak power demand and deploy community-based BESS projects in all panchayats.