Government Issues Fast-Track Rules for Energy Storage in Accelerated Green Energy Transition

The Ministry of Power announced on January 15 that consumers surpassing a specified load threshold and equipped with Energy Storage Systems (ESS) are now permitted to independently establish, operate, and maintain dedicated transmission lines without the need for a license.

This decision opens the door for a new category of bulk consumers in the country, enabling them to access more cost-effective electricity and bolstering grid reliability. While this provision was already available to generating companies and captive generating stations, its extension to a broader consumer base is expected to have significant economic and environmental implications.

Power Minister R K Singh highlighted that eliminating the licensing requirement for dedicated transmission lines in the industrial sector would streamline processes, fostering ease of doing business and catalyzing faster industrial growth with increased job creation. This move, coupled with the rationalization of open access charges, is anticipated to accelerate the adoption of renewable energy by industries, consequently reducing emissions.

Minister Singh emphasized the government's commitment to reducing losses incurred by distribution companies (Discoms), noting a substantial reduction from 27% in 2014 to 15.41% in 2022-23. The newly implemented rules aim to further diminish these losses, enhancing the viability of Discoms and enabling them to deliver improved services to consumers.

HBL