With large-scale energy storage systems set to become a reality soon in Keralam’s power sector, the Kerala State Electricity Regulatory Commission (KSERC) has drawn up regulations for governing their operations.Special provisions for the deployment and operation of energy storage systems are part of a draft multi-year tariff (MYT) regulations published by the KSERC on Monday. This is also the first time that provisions for energy storage systems have been proposed as part of the MYT regulations, KSERC officials said.In the case of energy storage, the draft regulations cover aspects of community and collective energy storage services (ESS), tariffs for peak-hour support from ESS and operating parameters for ESS. Importantly, they also contain provisions for providing incentives for early commissioning of storage systems. Further, the draft recognises Energy Storage System Developers (ESSD) as a new class of regulated entities in the State’s power sector.These provisions are part of the Draft KSERC (Multi-Year Tariff (MYT)) Regulations, 2026, meant for determining power tariffs for a five-year control period starting 2027-28. The validity of the existing MYT regulations end in March 2027. The provisions for determining the tariffs of energy storage systems cover battery energy storage systems (BESS), pumped storage projects (PSP) as well as other storage systems, according to the Commission.“A comprehensive framework has been introduced for the determination of tariff for Energy Storage Systems, including Battery Energy Storage Systems, Pumped Storage Projects, and other storage systems and for the recognition of ESSD as a new class of regulated entities. ESSD is defined as an entity owning or operating the ESS facility for the storage and supply of electricity to the beneficiary.Earlier this year, the Kerala State Electricity Board (KSEB) had informed the commission that it planned to complete five BESS projects by October this year. Absence of large-scale energy storage systems has prevented Keralam from benefitting from the surge in its solar power capacity.Two of the systems are coming up in Kasaragod district - the first one at Mylatti with a proposed capacity of 125 megawatts (MW)/500 megawatt hours (MWh) and a second 15MW/60MWh project at Mulleria. The other three are a 40 MW/160 MWh BESS at Sreekantapuram, a 30 MW/120 MWh project at Areacode, and a 40 MW/160 MWh BESS in Pothencode.The Revised State Budget for 2026-27 presented by the State government in June had announced plans for installing large-scale battery storage systems to meet the peak power demand. It also promised measures for deploying community-based BESS projects in all panchayats. Published - August 25, 2026 12:31 pm IST