Need to update Electricity Act to include provisions for energy storage: FICCI-EY study

There is a need to update the current Electricity Act to incorporate provisions for ensuring the deployment of storage infrastructure according to a joint report by the Federation of Indian Chambers of Commerce and Industry, and EY.

The report titled Battery Storage-The Next Big Energy Frontier said, “Since, there is no section on energy storage in the Electricity Act, there is a need of an updated Act which defines energy storage.”

Power distribution companies

The report said that there is a need of a revised Regulatory Framework for power distribution companies (DISCOMs). Highlighting the provisions that need to be updated, the report suggested that the Central Electricity Regulatory Commissions and the State Electricity Regulatory Commissions can introduce some guidelines to provide clarification about requirement of licence for setting up energy storage systems.