Original Coverage & Source Attribution: solarquarter.com
The Union Ministry of Power has proposed amendments to four key tariff-based competitive bidding guidelines governing renewable energy and battery energy storage procurement, introducing mandatory domestic content requirements for energy storage systems (ESS) and revising payment security provisions for battery storage projects. The draft amendments were issued on November 10, 2026, and circulated to state governments, electricity regulatory commissions, power exchanges, and industry associations for feedback. Stakeholders have been given 15 days, until November 25, 2026, to submit their comments and suggestions.
The proposed amendments seek to strengthen domestic manufacturing while supporting the wider integration of energy storage into India’s renewable energy procurement framework. The changes cover solar PV projects, grid-connected wind-solar hybrid projects, firm and dispatchable renewable energy projects, and standalone battery energy storage systems (BESS).
Under the proposed amendments to the Solar PV Power Projects guidelines, originally issued in July 2023, the ministry has revised Clause 1.1.3 to introduce additional requirements for energy storage integration. Solar power projects may continue to be developed with or without storage. However, developers will be required to comply with central government orders and Central Electricity Authority regulations mandating the installation of energy storage systems alongside solar projects. Any storage capacity integrated into these projects must also meet the applicable domestic content requirements.
The ministry has proposed similar changes to the guidelines for Grid Connected Wind Solar Hybrid Projects, originally notified in August 2023. The amendment to Clause 3.3 replaces the existing optional provision with a mandatory requirement for adding energy storage to the solar component of hybrid projects, wherever required under government orders and regulatory provisions. The proposed change aims to improve power supply stability, reduce fluctuations in renewable generation, and increase the ability of hybrid projects to deliver reliable electricity. The integrated storage systems will also be required to comply with domestic sourcing requirements.
For Firm and Dispatchable Power from Grid Connected Renewable Energy Projects, the ministry has proposed an amendment to Clause 1.1.8 of the June 2023 guidelines. The revised provision requires energy storage systems integrated into renewable energy projects to meet specific electricity demand profiles to comply with central government orders on domestic content. This requirement is intended to ensure that storage deployment under firm and dispatchable renewable energy procurement supports local manufacturing.
The fourth amendment concerns the March 2022 guidelines for the Procurement and Utilization of Battery Energy Storage Systems across generation, transmission, distribution, and ancillary services. Under the proposed changes to Section III, bidding agencies will be required to incorporate suitable provisions in their Request for Selection documents to ensure that BESS projects comply with applicable domestic content requirements. The minimum tenure of the Battery Energy Storage Purchase Agreement will remain eight years, with provisions for extending the agreement according to procurement requirements.
The ministry has also proposed changes to the Payment Security Mechanism under Section IV of the BESS guidelines. The revised framework allows intermediary procurers to collect a non-refundable contribution of up to ₹5 lakh per MWh from BESS developers to maintain a Payment Security Fund covering at least three months of billing.
However, the draft clarifies that contributing to this fund will be optional for developers. Developers choosing to participate will have their contributions, along with accrued interest, deposited into a dedicated Payment Security Fund established by the Government of India.
The proposed amendments represent an important policy step towards strengthening domestic energy storage manufacturing and improving payment security in India’s renewable energy sector. The final provisions will depend on stakeholder feedback and the ministry’s subsequent decisions following the November 25, 2026, consultation deadline.
