Madhya Pradesh Electricity Regulator Expands Renewable Regulations to Include Energy Storage Systems

Madhya Pradesh Electricity Regulator Expands Renewable Regulations to Include Energy Storage Systems

November 13, 2025

In a major policy move to reinforce the adoption of clean energy technologies, MPERC has revised its existing renewable energy regulations to officially bring ESS under the ambit of the state’s power ecosystem. Third Amendment, 2025, dated October, expands the scope of earlier rules related to forecasting, scheduling and deviation settlement for renewable generation, thus marking a step toward a more resilient and flexible electricity grid in the state.

Under the revised regulations, all standalone energy storage projects of 10 MW or more would now come under MPERC’s regulatory ambit, along with wind, solar and hybrid wind-solar generating stations that meet certain size thresholds. The changes also cover projects combining renewable generation with storage facilities, as well as those selling electricity outside Madhya Pradesh to customers under open access arrangements. It updates the definition of major technical terms, such as “Energy Storage System,” defined as a facility able to convert electrical energy to another form that may be stored and then reconverted to supply electricity to the grid. Terms have also been clarified, such as “Area Clearing Price” and “Reference Charge Rate,” to support enhanced grid management and accounting for deviation in this new framework. One of the striking features is how the updated rules integrate energy storage into the state’s scheduling and settlement mechanisms. All qualified renewable and storage projects shall be treated as a single virtual pool for deviation calculation, with the SLDC responsible to compute charges w.r.t. forecast versus actual generation.

This is expected to improve overall grid stability and reward accurate forecasting and energy dispatch. MPERC’s revision has also brought in financial safeguards against the Quality Control Agencies operating forecasting and scheduling on behalf of the developers, necessitating bank guarantees that could be encashed by SLDC in case of default in payment of deviation charges. These are only some of the measures to drive better compliance and reliability for renewable energy operations in the state. The regulatory update is the reflection of a series of efforts by Madhya Pradesh as a whole for facilitating the transition towards renewable energy, along with storage technologies that help reduce variability in wind and solar generation, and provide much flexibility to the grid.