The Central Electricity Regulatory Commission (CERC) has notified the Tariff (Second Amendment) Regulations, 2026, finally formalizing the role of storage co-located with thermal and ISTS projects.
Key Regulatory Shifts:
- Life Expectancy: Lithium-ion BESS now assigned a formal useful life of 15 years.
- Performance Norms: Round-trip efficiency (RTE) mandated at 85% with an auxiliary consumption cap of 5%.
- Cost Recovery: Introduction of ‘Supplementary Fixed Storage Charges’ to allow generators to recover BESS capital expenditure through tariffs.
- Incentives: A ₹0.10/kWh incentive for discharge exceeding normative efficiency targets.
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