The Andhra Pradesh Electricity Regulatory Commission (APERC) has released new regulations for the planning, procurement, deployment, and utilization of Battery Energy Storage Systems (BESS), establishing a comprehensive regulatory framework to support renewable energy integration and enhance grid stability across the state. The regulations were announced on September 12, 2025.

The state's Integrated Clean Energy Policy, 2024, has set a target of adding approximately 25 GWh of BESS capacity to support its goal of integrating over 160 GW of renewable energy. This new regulation represents a critical step in turning that vision into reality.

Multi-Stakeholder Framework and Deployment Models

APERC's new BESS regulation seeks to create a structured approach for BESS deployment across generation, transmission, distribution, and consumer-end applications. The framework encourages participation from a wide range of stakeholders, including DISCOMs, transmission licensees, generating companies, renewable developers, independent power producers (IPPs), storage service providers, aggregators, and consumers.

The regulation establishes flexible ownership and deployment models, allowing BESS to be co-located with renewable energy projects, installed as standalone grid assets, embedded in networks, or set up behind the meter by consumers. The systems can be integrated with EV charging stations and battery swapping stations, and can provide Vehicle to Grid (V2G) services and Grid-to-Vehicle (G2V) services when integrated with electric vehicles.

Grid Services and Revenue Mechanisms

The regulation clearly establishes Battery Energy Storage Systems as a core component of grid management, enabling them to deliver essential grid support services with defined revenue streams. These services include frequency regulation across all levels (primary, secondary, and tertiary), spinning and non-spinning reserves, voltage stabilization, black start capabilities, and demand response services.

Aggregators will play a key role in consolidating BESS services from multiple sites to provide services to the grid or to market participants. The Andhra Pradesh State Load Dispatch Centre (APSLDC) has been designated as the nodal agency responsible for implementing ancillary services using BESS. APSLDC will also oversee eligibility, performance monitoring, and the development of scheduling, metering, and remuneration protocols.

Technical Requirements and Procurement Framework

For DISCOMs and transmission licensees, the regulation mandates inclusion of BESS in resource planning and procurement via competitive bidding, subject to APERC approval. Preference will be given to co-located systems to reduce grid integration costs. The regulation defines a minimum individual project size of 1 MW with at least four hours of energy rating. However, smaller systems at the distribution transformer (DTR) level for rooftop solar storage locally are also allowed.

Tariff mechanisms for BESS include cost recovery through Commission-approved tariffs for licensee-owned assets and competitive bidding for third-party providers. Market-linked services will be compensated based on market-clearing prices in ancillary markets.

Compliance and Integration Standards

The regulation sets out technical standards and compliance requirements related to safety, cybersecurity, and environmental norms in line with CEA, MeitY, and MoEFCC guidelines. It mandates regular data submissions, system inspections, and integration protocols for both grid-connected and standalone systems. The regulation provides open access for BESS under the state's Green Energy Open Access framework and includes mechanisms for dispute resolution, amendments, and removal of operational difficulties.

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