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JSA Prism | Energy | July 2025

Solar panels and wind turbines on a grassy field under a blue sky, symbolizing clean and renewable energy generation.

Please click here to download the Prism as a PDF.

A snapshot of the Approved List of Models and Manufacturers introduced by the Ministry of New and Renewable Energy

The Approved List of Models and Manufacturers (“ALMM”) is a regulatory mechanism introduced by the Ministry of New and Renewable Energy (“MNRE”) in January 2019 to ensure the quality and authenticity of solar photovoltaic (“PV”) modules and cells used in certain projects. ALMM was conceived to address concerns regarding misrepresentation by solar manufacturers about products’ origin or quality etc.

Under the ALMM framework, MNRE enlists eligible models and manufacturers of solar PV cells and modules that comply with Bureau of Indian Standards (“BIS”) quality standards along with efficiency threshold requirements viz:

ALMM Order dated January 2, 2019 (“2019 ALMM Order”) provided for 2 (two) separate lists i.e. List-I for solar PV modules and List-II for solar PV cells;
the first formal ALMM List-I (for modules) was approved and published by MNRE on March 10, 2021. This list required BIS compliance; and
an efficiency threshold was introduced by MNRE in its Office Memorandum (“OM”) dated May 10, 2023.

Only the models and manufacturers included in the ALMM list are permitted for use in the designated solar power projects (detailed below). This ensures use of tested quality products from vetted manufacturing facilities.

The conditions have undergone several changes from time to time to meet the industry demands. Initially, in 2019 ALMM requirements applied only to solar projects that are implemented by the Government or receive Government support and projects set up for sale of electricity to the Government under Section 63 of Electricity Act, 2003. In January 2022, MNRE, vide OM dated January 13, 2022, expanded the scope of ALMM to include renewable energy projects under open access and net metering arrangements. After this amendment, any new solar projects applying for open access (third-party sale of power) or net metering (rooftop solar with grid feed-in) would also need to use ALMM-listed modules.

Key developments (2019 till 2025)

January 2022 – Scope expansion: An amendment on January 13, 2022 broadened ALMM’s applicability to include open-access and net-metered projects (in addition to government and utility-scale projects). Consequently, from a set date, even privately developed projects using open access or net metering would need ALMM-approved modules.
October 2022 – Exemption: MNRE clarified that private rooftop or captive self-consumption projects i.e. projects without any export to grid are not subject to ALMM (modules or cells).
March 2023 – Temporary suspension: In a significant move reflecting industry supply considerations, MNRE put ALMM on hold for 1 (one) year. An OM dated May 10, 2023, announced that the ALMM Order (for modules) is “held in abeyance for one financial year, i.e. FY 2023-24.”. This meant that solar projects commissioned by March 31, 2024, were exempted from the ALMM module procurement requirement. This pause was likely aimed at relieving supply constraints or high costs.
Early 2024 – Reinstatement and refocusing: As FY 2023-24 drew to a close, MNRE prepared to reimpose ALMM from April 2024, but with some refinements. On February 9, 2024, an order was issued stating that ALMM for modules would again be mandatory w.e.f. April 1, 2024. This directive sought to narrow the scope of ALMM to its original intent (government and subsidized projects only). MNRE signalled that purely commercial projects without government support would be out of ALMM’s ambit going forward.
However, shortly after, on February 15, 2024, MNRE put this re-imposition order on hold until further notice.
Ultimately, MNRE did confirm the end of the ALMM suspension through a clarification on March 29, 2024, stating that the ALMM (List-I for modules) would come back into effect from April 1, 2024 (after the 1 (one) year hiatus). Specific proposal to permanently exclude open access and captive projects was not formally enacted (since the February 9^th order was suspended).
As of April 2024, the ALMM requirement for modules is in force generally for Government, open access, and net-metered projects as per the earlier framework.
Mid/Late 2024 – Additional exemptions and reforms: In May 2024, MNRE issued an order providing a special exemption for renewable energy projects dedicated to green hydrogen production. Specifically, any solar/wind plants located in a Special Economic Zone (“SEZ”) or Export Oriented Unit (“EOU”) that supply power exclusively to an electrolyser facility (for green hydrogen or its derivatives) located within an SEZ/EOU are exempted from ALMM requirements until December 31, 2030.
October 2024 – Reiteration of exemptions: On October 14, 2024, MNRE issued a clarification essentially reiterating the earlier exemption for open access and net-metering projects with prior approvals (pre-October 1, 2022).
Mid 2025: On May 16, 2025, MNRE confirmed that behind-the-meter captive plants owned by Government entities or public sector undertakings have never been exempt from ALMM modules (List I). On July 10, 2025, MNRE issued a clarification on applicability to Government/ public sector undertaking behind-the-meter solar projects commissioned before and after June 1, 2026. For projects commissioned after June 1, 2026, MNRE mandates usage of ALMM cells. For projects commissioned before June 1, 2026, MNRE exempts usage of ALMM cells.

Future Outlook – ALMM List-II (Solar PV Cells)

One major development as of late 2024 is MNRE’s plan to finally operationalise ALMM List – II for solar cells. Although the 2019 ALMM Order envisioned an effective List-II alongside List – I, in practice no List-II was launched for years. The reason was that India’s domestic solar cell manufacturing capacity was insufficient to meet demand. ALMM thus focused on modules (List-I) while developers were free to import solar cells for use in domestic module assembly.
By 2024, with Government incentives spurring new cell factories, MNRE determined that List-II can be implemented in the near future. An amendment announced in late 2024 sets a timeline: ALMM List-II (Approved List of solar PV cell manufacturers) will come into effect from June 1, 2026. This lead time gives cell manufacturers a window to ramp up and obtain BIS certification and ALMM listing.
When List-II becomes effective the ALMM policy will require that any solar module used in an ALMM-mandated project must be made with solar cells sourced from ALMM List-II manufacturers.
By mid-2026, India intends to have ALMM fully spanning the solar supply chain. This will ensure both modules and the key components (cells) are used in government facilitated projects.

Compliance of ALMM requirements for manufacturers

For manufacturers, getting onto the ALMM List is a detailed process aimed at verifying both quality and genuine manufacturing capability viz:

BIS certification: A manufacturer must first obtain BIS registration/certification for each model of PV module or cell it wants to list. This refers to the compulsory product certification scheme under the ‘Solar Photovoltaics Systems, Devices and Components Goods (Requirements for Compulsory Registration) Order, 2017’.
Application: The manufacturer must submit an application in the prescribed format for each model along with an application fee and documentary evidence of its financial and manufacturing capabilities for the past 3 (three) years (or since inception, if newer). This includes data on raw material purchases, production output, sales, and financial statements (P&L, balance sheet). In 2023 MNRE revamped application/inspection fees (scaled to nameplate capacity) and set a uniform 2 (two) year validity for all listings (so that adding models does not extend expiry).
Preliminary assessment: MNRE examines the documents and may conduct a preliminary verification especially for new or foreign applicants where domestic filings are not available. If a unit operates outside Indian jurisdiction (e.g. a foreign module maker applying for ALMM) and necessary data isn’t otherwise verifiable, MNRE can do an initial inspection to confirm the existence and operations of the factory.
Factory inspection: Before enlistment, a team from MNRE (or an authorized agency, such as NISE) conducts a thorough inspection of the manufacturing facility.
Enlistment decision: If all criteria are met MNRE issues an order enlisting the model and manufacturer in ALMM List-I or II as applicable.
Validity and renewal: The ALMM enlistment initially lasts 2 (two) years after which a manufacturer must apply for renewal to stay on the list. Renewal involves showing continued satisfactory performance of the products i.e. providing updated documents, evidence of quality maintenance and fresh inspection etc.
Oversight and removal: MNRE retains the right to conduct random audits, quality tests, and inspections at any time on ALMM-listed companies. If an enlisted manufacturer is found non-compliant, for instance, product quality issues, failure to meet standards, or evidence that they are outsourcing production contrary to ALMM’s intent, MNRE can remove (delist) the manufacturer/model from the ALMM.

Therefore, manufacturers seeking ALMM listing must prove their credibility (via certifications and audits) and continually comply with monitoring.

Conclusion

ALMM has become a cornerstone of India’s renewable energy procurement policy, marrying quality assurance with an implicit industrial policy to boost domestic manufacturing. For project developers and EPC contractors, ALMM compliance is now a critical checkpoint.

This Prism has been prepared by:

Poonam Verma Sengupta
Partner

Gayatri Aryan
Principal Associate

For more details, please contact [email protected].

Tags ALMM, Clean Energy, Energy Policy, JSA, JSA Newsletter, Leading Law Firm, Leading Lawyers, Legal Updates, Made In India, MNRE, Renewable Energy, Solar Energy India, Solar PV

JSA Prism | Energy | July 2025

Please click here to download the Prism as a PDF.

Environment rules amended: Revised legal framework for sulphur dioxide emission by thermal power plants

On July 11, 2025, the Ministry of Environment, Forest and Climate Change (“MoEFCC”) notified the Environment (Protection) Fourth Amendment Rules, 2025 (“Fourth Amendment Rules”). The Environment (Protection) Rules, 1986 (“Principal Rules”) have been amended from time to time by the MoEFCC to prescribe revised timelines for thermal power plants to comply with the emission standards for pollutants pertaining to sulphur dioxide which were originally notified by the Central Government by its notification dated December 7, 2015. The Fourth Amendment Rules prescribes revised timelines for compliance by thermal power plants in a graded manner.

Significant changes under the Fourth Amendment Rules

Category ‘C’ thermal power plants are exempt from complying with sulphur dioxide emission standards so long as such Category ‘C’ plants adhere to the stack height requirements prescribed by the notification dated August 30, 1990 and ensure such compliance by December 31, 2029.
Levy of environment compensation on non-compliant thermal power plants starting with INR 0.20/unit and increasing to INR 0.40/unit for non-compliance for a period of 366 (three hundred and sixty-six) days and beyond.
The Central Pollution Control Board (“CPCB”) had issued phase-wise timelines to 189 (one hundred and eighty-nine) thermal power plants in the country aggregating to approx. 166.7 GW (one hundred and sixty-six point seven gigawatt) of the installed thermal capacity to comply with the revised emission norms prescribed by MoEFCC notification dated December 7, 2015 (“2015 Notification”). This entailed an approx. expenditure of INR 80,000 crore (Indian Rupees eighty thousand crore) which is only the base cost of Flue Gas Desulphurisation (“FGD”) system and excludes soft cost such as Interest during Construction (IDC), taxes and duties, Foreign Exchange Rate Variation, expenditure towards project management and engineering services and pre-operative expenses, which is to be allowed at actuals after commissioning of the FGD system.
In response to multiple representations from stakeholders and due to supply chain delays, the timelines stipulated under the 2015 Notification have been periodically revised, with the most recent extension provided by MoEFCC, vide its notification dated December 30, 2024 (“2024 Notification”). The timelines were extended as follows:-
- category A: up to December 31, 2027 (initially it was December 31, 2024);
- category B: up to December 31, 2028 (initially it was December 31, 2025); and
- category C: up to December 31, 2029 (initially it was December 31, 2026).
Following the revision of timelines under the 2024 Notification, MoEFCC received multiple representations seeking exemptions or relaxations in timelines of these emission standards. These representations were due to limited availability of technology providers, techno-economic feasibility, negative impact of COVID19 pandemic on supply chain, price escalation due to high demand and low supplies, low concentration of sulphur dioxide in ambient air and heavy burden on consumers due to increase in electricity prices etc. Notably, the MoEFCC also acknowledged receiving a recommendation from the Ministry of Power in this regard.
Thereafter, a committee was constituted in the CPCB to examine these issues in totality, assess the study reports and make a recommendation on applicability of the revised emission standard and the timelines. The Fourth Amendment Rules have been notified after taking into consideration the recommendation made in its Report by the CPCB.
The monitoring of emission standards will now be monitored by a task force which will be constituted by the CPCB comprising of representatives from the MoEFCC, Ministry of Power, Central Electricity Authority and CPCB.
The category wise classification of thermal power plants is provided below:-

Category	Location/area
Category A	Within 10 km radius of National Capital Region or cities having million plus population
Category B	Within 10 km radius of Critically Polluted Areas or Non-attainment cities
Category C	Other than those included in Category A and B

The revised timelines for thermal power plants to comply with the emission standard norms for sulphur dioxide is provided below:-

Category	Revised Timelines
Category A	December 31, 2027
Category B	To be decided on a case to case basis by the Central Government based upon the recommendation of the Expert Appraisal Committee in charge of the thermal power projects constituted under the Environment Impact Assessment notification, 2006 as per the following procedure:- a) in case environmental clearance has already been granted, such plants or units may opt for review of the applicability of sulphur dioxide standards provided that concerned project proponent applies for such review on the PARIVESH portal within 6 months from the date of issue of this notification. In case the sulphur dioxide standards are decided as applicable, the same will be effective from December 31, 2028 and in all other cases, the thermal power plant will comply with the stack height criteria by December 31, 2028 as notified vide notification[1] dated August 30, 1990 (“1990 Notification”); b) in the case of upcoming thermal power plants for which environmental clearance has not yet been granted, the applicability of sulphur dioxide standards and the effective date thereof will be as specified in environmental clearance granted to each such projects, following the procedure as laid down in Environment Impact Assessment notification, 2006 as amended from time to time. Where the sulphur dioxide standards are not made applicable, the thermal power plants will comply with the stack height criteria specified in the 1990 Notification; and c) these standards for sulphur dioxide emissions will be applicable with effect from December 31, 2028, in respect of all those plants or units which have not opted for review within the given timeframe as specified in para (a) above.
Category C	Sulphur dioxide emission standards will not be applicable to all Category C thermal power plants subject to ensuring compliance of stack height criteria specified under the 1990 Notification. The time lines for ensuring compliance of stack height criteria by the existing Category C Thermal Power Plants will be December 31, 2029.

Thermal power plants that are declared to retire before December 31, 2030 will be exempt from complying with the prescribed sulphur dioxide emission standards, provided an undertaking is submitted to the CPCB and the Central Electricity Authority seeking exemption on the ground of proposed retirement of such plant. However, if any such plants continue to operate beyond December 31, 2030, environment compensation at the rate of INR 0.40/unit will be levied on the electricity generated.
The Central Government may on the recommendation of the CPCB, by an order grant extension of timelines to thermal power plants from compliance of sulphur dioxide emission standards.
Environment compensation will be levied on non-retiring and non-compliant thermal power plants after the revised timelines for compliance as follows:-

Non-compliant operation beyond the timeline	Environment compensation (INR per unit of electricity generated)
0 – 180 days	0.20
181 – 365 days	0.30
366 days and beyond	0.40

Conclusion

Since the issuance of the 2015 Notification by MoEFCC, the thermal power plants in the country have been battling before various regulators, the Appellate Tribunal for Electricity and Supreme Court due to the huge capital expenditure involved in complying with the revised emission standards and the resultant compensation claims in terms of their respective power purchase agreements. Interestingly, the question of whether the 2015 Notification is a change in law event necessitating compensation to thermal power plants due to compliance with the revised emission standards for both Section 62 (cost-plus) and Section 63 (competitively bid out) projects is pending before the Supreme Court.

The Fourth Amendment Rules provide much needed clarity insofar as the Category ‘C’ thermal power plants are concerned which have now been exempted from complying with the sulphur dioxide emission standards so long as such Category ‘C’ plants adhere to the stack height requirements specified under the 1990 Notification and ensure such compliance by December 31, 2029.

This Prism has been prepared by:

Amit Kapur
Partner

Akshat Jain
Partner

For more details, please contact [email protected].

[1] Notification number GSR 742 (E)

Tags Emission Standards, Environment Rules, JSA, JSA Legal Update, Leading Law Firm, Leading Lawyers, Legal Updates, MoEFCC, Pollution Control, SO2 Emissions, Thermal Power Plants

APTEL upholds procedural fairness; WBERC’S order against Surya Alloy set aside and remanded.

Glowing light bulb with justice scales symbol inside, representing regulatory clarity and legal insight in the power sector.

JSA Advocates and Solicitors successfully represented Surya Alloy Industries Ltd. (“Surya Alloy”) before the Appellate Tribunal for Electricity (“APTEL”) challenging the Order dated 12.08.2022 (“Impugned Order”) passed by West Bengal Electricity Regulatory Commission (“WBERC”) in Case No. C15/993, which related to Damodar Valley Corporation’s (“DVC”) demand for additional energy charges during the restricted drawal period. While setting aside the Impugned Order, APTEL has reaffirmed the importance of procedural compliance and the principles of natural justice in regulatory proceedings.

The brief facts leading up to the passing of the Judgment are summarised below:-
- On 06.02.2019, Surya Alloy had filled in a Writ Petition before the Calcutta High Court inter alia, challenging the vires of Regulation 4.4 of the WBERC (Terms and Conditions of Tariff) Regulations, 2011 and seeking a direction for refund of all payments made by the Appellant towards the additional energy charges levied by DVC, for the months of June 2015 to December 2018.
- On 12.02.2021, Calcutta High Court disposed of the Writ Petition filed by Surya Alloy, while:-
  - Permitting Surya Alloy to approach Ld. WBERC on the aspect of additional energy charges for the months of June 2015 to December 2018, while keeping the issue relating to the vires of Regulation 4.4 of the Tariff Regulations open.
  - Directing Ld. WBERC to pass the order within 6 months after hearing parties.
- On 26.02.2021, Surya Alloy filed the Petition before WBERC, wherein:-
  - (On 31.01.2022, the Petition was heard by a quorum consisting of the Chairperson and two Members.
  - On 28.04.2022, one of the Members of Ld. WBERC retired.
  - On 18.07.2022, the Petition was heard by quorum consisting of the Chairperson and the remaining Member.
  - On 01.08.2022, the Chairperson retired.
  - On 12.08.2022, the Impugned Order was passed by Ld. WBERC. Notably, while the covering page of the Impugned Order notes the presence of the Chairperson (who had retired by then) along with another Member, the Impugned Order was signed by only one Member.
The Impugned Order passed by WBERC was principally challenged on the ground that the Impugned Order was passed in contravention of:-
- Regulation 2.14.1 and 2.14.2 of WBERC (Conduct of Business) Regulations, 2013 (“CBR Regulations”), which envisages that the Orders passed by WBERC shall be signed by (all) the members who considered and/or heard the matter; and
- The settled principle of natural justice that “one who hears must decide”.
By its Judgment dated 04.07.2025 (“Judgment”), APTEL set aside the Impugned Order and remanded the matter to WBERC for fresh consideration. The key findings of APTEL are summarised below:-
- The principle of ‘one who hears must decide’ would apply where the Appropriate Commission exercises adjudicatory powers under Section 86(1)(f) of the Electricity Act, since a personal hearing is invariably provided in such cases to parties on either side.
- Regulation 2.14 of the CBR Regulations excludes the application of this principle during the tariff determination exercise, since it permits:-
  - Even a member who has not heard the matter to sign the order, in order to validate it. Such instances may arise during the tariff determination exercise.
  - Existing members, who either heard or considered the matter to sign the order, even if one of them retired, resigned or been removed after the hearing but before the order was signed.
- While tariff determination is a quasi-judicial exercise, it does not mandatorily require an oral hearing, since:-
  - If Parliament had intended an oral hearing to be mandatory in such cases, it would have explicitly provided, instead of confining the requirement of an oral hearing only to a situation where the tariff application, is intended to be rejected by the Commission, under Section 64(3)(b) of the Electricity Act
  - Unlike an adjudicatory order passed under Section 86(1)(f) of the Electricity Act, which may be required to be preceded by a hearing being afforded to the parties concerned, reading such a requirement, into the provisions of the Electricity Act and the Rules and Regulations made thereunder, may not be justified where the order passed by the Commission relate to matters other than those specifically falling under Section 86(1)(f) of the Electricity Act.
- The principle of ‘one who hears must decide’ may not apply in situations where the Commission undertakes a tariff determination exercise under Section 62 read with Section 64 of the Electricity Act, unless the applicable regulations expressly stipulate an oral hearing to be provided to the applicant, before orders are passed by the Commission.
- WBERC’s contention that its actions are saved by Section 93 of Electricity Act do not hold merit, since, in terms of the directions of the Calcutta High Court and, since three Members of WBERC had initially heard the matter pursuant to the directions of the Calcutta High Court, the order ought to have been passed and signed by all the three Members, and not just by one of them. The fact that two of them had retired in the interregnum, would require the remaining member to hear the matter afresh and pass a reasoned order.

APTEL has reaffirmed the importance of procedural compliance and the principles of natural justice in regulatory proceedings. The decision underscores that orders must reflect proper constitution and participation of the adjudicating authority to ensure fairness and transparency.

JSA’s Disputes team was led by Amit Kapur (Lead Partner), along with Akshat Jain (Partner) and Sayan Ghosh (Associate).

Tags APTEL judgment, Electricity Act, Energy Law, JSA Disputes, JSA Victory, Legal Compliance, Natural Justice, Power Sector India, Regulatory Law, Surya Alloy, Tariff Regulations, WBERC

JSA Prism | Electricity & Power | July 2025

High-voltage power transmission towers with dynamic neon light trails and an energy pulse symbol at night.

Please click here to download the Prism as PDF.

Draft amendments proposed in Rule 18 (relating to Energy Storage Systems) of Electricity Rules, 2005

The Ministry of Power on June 11, 2025, issued the draft Electricity (Amendment) Rules, 2025 (“Draft Rules”), proposing to make amendments to Rule 18 of the Electricity Rules, 2005. Rule 18 relates to Energy Storage Systems (“ESS”). The Draft Rules are in furtherance of notification dated January 29, 2022, issued by Ministry of Power, titled ‘Clarification regarding usage of Energy Storage System (ESS) in various applications across the entire value chain of Power Sector’. This notification first clarified ESS as part of the ‘power system’ as defined under Section 2(50) of the Electricity Act, 2003, that a standalone ESS is a delicensed activity, and outlined its legal status and usage. This notification was followed by issuance of the Electricity (Amendment) Rules, 2022, which introduced Rule 18.

The Draft Rules introduce revisions in terms of the utility and beneficiaries of the storage system. The Draft Rules have been issued to invite comments and suggestions from the industry.

Key proposed changes

ESS will be utilised either as an independent ESS or, as a part of the generation, transmission or distribution. Reference to the ESS as a ‘network asset’ will be omitted.
ESS may be developed, owned, leased or operated by a generating company or a transmission licensee or a distribution licensee, or a consumer, or a system operator or an independent energy storage service provider.
The legal status of an ESS will be the same as that of the owner. However, if such an ESS is not co-located with, but owned and operated by, the generating station or distribution licensee or consumer, the legal status will still be that of the owner but for the purpose of scheduling and dispatch and other matters it will be treated at par with a separate storage element.
The owner or developer of the ESS will have an option to sell or lease or rent out the storage space in whole or in part to any consumer or utility engaged in generation or transmission or distribution; or to a Load Despatch Centre.

Conclusion

ESS is vital for integrating the large volumes of renewable energy penetrating in India’s energy mix and will play a significant role in grid balancing and providing fast response/ramping up or down, thereby enabling flexibility in system operation. The Draft Rules provide greater clarity and certainty regarding the growing dimensions and opportunities related to ESS. Particularly, the proposal to allow consumers to develop, own or operate ESS, or avail energy storage facilities at their end, would represent a major change in how energy storage is integrated into the power sector landscape. It will foster greater decentralisation and empower demand-side participation in energy markets.

This Prism has been prepared by:

Vishnu Sudarsan
Partner

Sugandha Somani Gopal
Partner

Mehar Vasant
Senior Associate

For more details, please contact [email protected].

Tags Draft Amendment, Electricity Rules 2025, Energy Storage, ESS Policy, Grid Balancing, JSA News, Leading Law Firm, Leading Lawyer, Legal Updates, MoP India, Power Sector Reforms, Renewable Integration

JSA Prism | Energy | July 2025

Please click here to download the Prism as a PDF.

Draft regulations on battery energy storage systems released by the Andhra Pradesh Electricity Regulatory Commission

The Andhra Pradesh Electricity Regulatory Commission (“APERC”) on June 30, 2025, released the draft APERC [Planning, Procurement, Deployment, and Utilisation of Battery Energy Storage Systems (BESS)] Regulations, 2025 (“Draft BESS Regulations”). The Draft BESS Regulations aim to establish a comprehensive framework for the deployment, ownership, and operation of Battery Energy Storage Systems (“BESS”) in the state of Andhra Pradesh, aligned with national guidelines and policies, including the 2022 Guidelines and the National Framework for Energy Storage Systems, 2023 released by the Ministry of Power. The Draft BESS Regulations seek to catalyse private investment, promote grid stability, and enable market-based participation in ancillary services. Comments and suggestions on the draft may be submitted to APERC on or before July 21, 2025.

Salient features

Enabling BESS across the value chain: BESS may be developed and owned by distribution and transmission licensees, generating companies, renewable energy developers, aggregators, system operators, independent service providers or any other third-party investors. The systems may be deployed as standalone installations, co-located with generation sources, embedded within network infrastructure, or installed behind the meter at the consumer end.
BESS planning and procurement criteria: Distribution and transmission licensees are required to determine BESS locations in the distribution or transmission system based on reverse power flow at substations and should also seek prior approval from the APERC for procurement. While a minimum project size of 1 MW (one megawatt) and above (with at least 4 (four) hour energy storage) is prescribed, exemptions are provided for BESS set up at the distribution transformer level to support local solar rooftop generation.
Third-party and open access participation enabled: The draft regulations expressly allow renewable energy developers, including independent power producers (IPPs), to set up BESS either at the generation site or separately for use by their consumers through open access. However, the draft does not clearly address whether BESS can be independently used by third-party consumers, leaving ambiguity on this aspect.
Participation in ancillary service markets: BESS is eligible to provide frequency regulation (primary, secondary, and tertiary), spinning and non-spinning reserves, voltage support, and black start services. Aggregators may combine BESS capacity from multiple sites to offer grid services, subject to registration and approval by the State Load Despatch Centre (“SLDC”).
Market and tariff framework: Licensee-owned BESS assets will be subject to cost recovery through tariff determination by APERC, based on prudent investment norms. BESS services procured from private developers must follow competitive bidding. For market-linked services, compensation will be based on market-clearing prices or such other mechanism as approved by APERC.
Role of utilities in BESS planning: The Draft BESS Regulations require distribution licensees to include BESS in their resource planning and submit investment proposals to the Commission. However, it does not explicitly require utilities to factor BESS into demand forecasting, load dispatch planning, or renewable energy integration strategies, which may warrant further regulatory clarity.
Operational framework and governance: SLDC is designated as the nodal agency for registering BESS and aggregators, determining ancillary service requirements, scheduling and dispatch, and settlement. SLDC must also publish annual and real-time estimates of ancillary service requirements and monitor key performance indicators including state of charge (SoC), efficiency, response time, and availability.
Consumer and prosumer participation: Consumers and prosumers not covered under net metering or billing may install behind-the-meter BESS without the prior approval of the Distribution Company (“DISCOM”), subject to compliance with the technical standards prescribed by the Central Electricity Authority (“CEA”). For systems integrated with the grid, inspection and certification by the concerned DISCOM or transmission licensee is required. Standalone systems are exempt from this requirement.
Compliance and oversight: APERC will approve BESS procurement proposals, investment and tariff filings, SLDC procedures for ancillary services, eligibility criteria for aggregators, and standard agreement formats. The APERC is also empowered to issue directions, amend provisions, relax regulations, and remove implementation difficulties as needed.
Technical and performance oversight: All BESS installations must conform to technical standards specified by the CEA and comply with specifications approved by the Ministry of New and Renewable Energy. BESS providers must also submit periodic operational data to the SLDC and the APERC in the formats prescribed by the SLDC.

Conclusion

The Draft BESS Regulations represent a crucial step towards operationalising Andhra Pradesh’s ambitious clean energy goals under its 2024 Integrated Clean Energy Policy. By enabling both centralised and decentralised storage, the framework supports renewable energy integration, enhances grid reliability, and opens new avenues for market participation in ancillary services. Regulatory certainty and competitive procurement models aim to attract private investment and drive innovation. Stakeholders are encouraged to engage in the consultation process and assess opportunities for deployment and participation across the electricity value chain.

This Prism has been prepared by:

Vishnu Sudarsan
Partner

Sugandha Somani Gopal
Partner

Vihaan Pathak
Associate

For more details, please contact [email protected].

Tags Andhra Pradesh Power, APERC, Battery Storage, BESS, Electricity Regulation, Energy Storage India, Grid Flexibility, JSA Legal Update, Leading Law Firm, Leading Lawyer, Leading Lawyers, Renewable Integration, Sustainable Energy

JSA advises Crédit Agricole Corporate and Investment Bank and Mizuho Bank, Ltd.

Hand stacking coins on solar panels during sunset, symbolizing investment in solar energy

JSA Advocates and Solicitors advised Crédit Agricole Corporate and Investment Bank and Mizuho Bank, Ltd., in connection with financing 135 MWp commercial and industrial (C&I) solar power project set up by a project company of AMPIN Energy Transition in Rajasthan.

JSA’s team led by Karan Mitroo (Lead Partner), along with the Project Finance team, including Surbhi Jain (Principal Associate), Pragya Verma (Senior Associate), and Harshil Kakkar(Associate).

The Due Diligence team included Vishnu Sudarsan (Partner), Sugandha Somani Gopal (Partner) and Asmita Maan (Senior Associate).

The teams guided Crédit Agricole and Mizuho Bank on the financing of AMPIN Energy’s 135 MWp solar project.

Tags AMPIN Energy, Credit Agricole, Energy Transition, Green Energy, JSA Deal Alert, JSA Law, Mizuho Bank, Project finance, Renewable Energy, Solar Energy India

JSA successfully represented Tata Power’s Mundra Plant (4150 MW) before Central Electricity Regulatory Commission (CERC) qua grant of capital cost on account of installation of Flue Gas Desulphurisation (FGD)

Nuclear power plant cooling towers with an electricity transmission tower at sunset.

JSA successfully represented Tata Power’s Mundra Plant (4150 MW) before Central Electricity Regulatory Commission (CERC). On 22^nd June 2020, CERC allowed additional capital cost and recurring operational cost to be incurred by Tata Power for retrofitting of FGD, to meet revised emission norms. While CERC allowed the capital cost and operating cost, it denied capital expenditure of over INR 100 Crores and recurring annual operational expenditure by approx. 3.75%.

Tata Power challenged CERC’s Order before APTEL. APTEL vide its Judgment dated 14.05.2024 held that CERC’s deduction is illegal and bereft of any reasoning. Consequently, CERC’s Order was set aside with directions to CERC to consider this issue afresh.

CERC, in remand proceedings concluded that since FGD is installed based on fuel consumption and not merely installed capacity, an increase in capacity of 150 MW without increase in fuel consumption, will not lead to change in FGD configuration. Hence, Tata Power was awarded compensation re. entire capex requirement for installation of FGD for 4150 MW in contrast to the earlier 4000MW. Therefore, the earlier denied capital cost has now been allowed to Tata Power.

CERC’s Order rightly recognizes that Change in Law compensation cannot be reduced arbitrarily on unfounded assumptions. Such compensation must correlate with the technology and equipment concerned so as to restitute the impacted party fully to the same economic position as if the Change in Law did not exist.

JSA’s team led by Abhishek Munot (Lead Partner), along with support from JSA disputes team, including Kunal Kaul (Partner) and Samikrith Rao (Senior Associate), guided in securing a favourable outcome for Tata Power.

Tags APTEL, CERC, Change in Law, Emission Norms, Energy Law, Environmental Compliance, FGD, Infrastructure Law, JSA, JSA Legal Update, Leading Law Firm, Leading Lawyer, Legal Updates, Legal Victory, Mundra Plant, Power Sector, Tata Power

UltraTech Cement Limited Secures Regulatory Clarity for Hybrid Wind-Solar Connectivity with JSA’s

Hybrid wind-solar energy project at sunset with solar panels and wind turbines in a clean energy farm.

JSA successfully represented UltraTech Cement Limited (UTCL)before the Maharashtra Electricity Regulatory Commission (MERC) in securing directions that will enable greater efficiencies in granting connectivity for co-located and non-co-located hybrid wind-solar projects.

Considering the scope for optimising transmission capacity for hybrid renewable energy generation, UTCL filed a petition before MERC seeking that connectivity be granted based on the higher of the installed solar or wind capacity, instead of the cumulative capacity of both sources — which had been the prevailing practice in Maharashtra.

After hearing UTCL’s submissions and taking into account the State Transmission Utility’s revised connectivity procedure issued during the proceedings, MERC upheld UTCL’s position for co-located hybrid wind-solar projects. This landmark clarification will facilitate better planning and utilisation of transmission infrastructure for hybrid renewable projects in the State.

With respect to non-co-located hybrid projects, MERC appreciated UTCL’s submissions and directed the Grid Co-ordination Committee to undertake a detailed study addressing the feasibility of granting connectivity at multiple locations for renewable energy hybrid projects. The study will examine critical aspects including metering, connectivity, scheduling, energy accounting and settlement, deviation settlement mechanism (DSM) accounting, and transmission and wheeling charges. The Committee has been directed to submit a draft framework within six months for MERC’s consideration towards amending existing Regulations or notifying new ones.

This Order is significant since it proactively addresses a critical regulatory gap by tackling the complexities of non-co-located hybrid projects and their interaction with the grid. It is a first of its kind in India and would pave the way for providing regulatory frameworks and certainty for developers of non-co-located hybrid projects. It also enables more efficient use of existing transmission infrastructure and thus save costs.

The matter was handled by the JSA Disputes team, comprising Abhishek Munot (Lead Partner) and Kunal Kaul (Partner) along with Samikrith Rao (Senior Associate).

Tags Energy Regulation, Grid Connectivity, Hybrid Energy, JSA, JSA Deal Alert, MERC Order, Renewable Energy India, Transmission Efficiency, Ultratech Cement, Wind Solar Projects

JSA acts as legal counsel to IndiGrid in the acquisition of assets from ReNew, for INR 2,100 Crores

High-voltage power transmission towers across green fields at sunset, symbolizing large-scale energy infrastructure in India

JSA advised IndiGrid, a listed power sector InvIT, on its ₹2,100 crore acquisition of two assets:

Koppal-Narendra Transmission Limited (KNTL), a transmission project in Karnataka.
Renew Surya Aayan Private Limited (RSAPL), a 300 MW solar project in Rajasthan.

KNTL is a Build-Own-Operate-Maintain (BOOM) Inter-State Transmission System project located in Karnataka, which has been operational since October 2023, KNTL comprises approximately 276 circuit kilometers of transmission lines and ~2,500 MVA of transformation capacity.

RSAPL is a 300 MW (AC) operational project located in Barmer, Rajasthan. The project has been operational since March 2024 and has a long-term 25-year Power Purchase Agreement (“PPA”) with SECI at a fixed tariff of INR 2.37 per unit. The acquisition of RSAPL will be in line with the regulatory conditions stipulated under the PPA.

IndiGrid is India’s first listed power sector Infrastructure Investment Trust (InvIT) established in 2016. It owns, operates, and manages power transmission, renewable generation, and energy storage assets that deliver reliable power throughout India. Sponsored by KKR and listed on Indian stock exchanges, IndiGrid operates with the objective to empower the nation by delivering reliable power to each and every home while also creating value for its investors.

JSA’s role included structuring the transaction, which entailed the exit of joint venture shareholders in KNTL (RTVPL and KNI India AS), negotiating, and finalizing definitive documents for the transactions, while also identifying key project development and regulatory risks and suggesting optimal mitigation measures. This acquisition aligns with IndiGrid’s strategy to own assets with long-term contracts and ensure stable distributions to unitholders.

JSA team was led by Vishnu Sudarsan (Lead Partner), along with Shashank Vikram Singh (Partner) and Kartikeya GS (Partner) who were supported by Siddhant Thakar (Senior Associate), Mehar Vasant (Senior Associate), Priyanka Barik (Senior Associate), Ravneet Gill (Associate), Vignesh Ravichandran (Associate), Komal Karnik (Associate).

JSA Dispute team comprised Poonam Verma Sengupta (Partner) and Sakshi Kapoor (Senior Associate).

JSA Real Estate team comprised Upendra Nath Sharma (Partner), Bharat Bushan Sharma (Partner) and Mohit Aggarwal (Principal Associate).

JSA Competition team comprised Vaibhav Choukse (Partner) and Ela Bali (Partner).

Tags Energy Law, IndiGrid, InvIT, JSA Deal Alert, JSA Law Firm, Power Infrastructure, ReNew Power, Renewable Energy India, Solar Energy, Transmission Assets

JSA Prism | Electricity & Power | June 2025

Please click here to download the Prism as PDF.

India’s RE evolution- CERC issues draft guidelines on Virtual PPAs

On May 22, 2025, the Central Electricity Regulatory Commission (“CERC”) released draft guidelines to establish a regulatory framework for Virtual Power Purchase Agreements (“VPPAs”), marking a significant step in India’s Renewable Energy (“RE”) policy evolution. This initiative follows the Central Government’s October 2023 notification under Sections 14(n) and 14(x) of the Energy Conservation Act, 2001, which, in consultation with the Bureau of Energy Efficiency (“BEE”), introduced Renewable Energy Consumption Obligations (“RCO”) for designated consumers. These obligations require a minimum share of electricity consumption to come from non-fossil sources and may be fulfilled either through direct procurement or via Renewable Energy Certificates (“RECs”), with non-compliance attracting penalties.

In this context, the Ministry of Power (“MoP”), vide its communication dated March 3, 2025, requested CERC to develop a framework recognising VPPAs as Non-Transferable Specific Delivery (“NTSD”), Over-the-Counter (“OTC”) contracts, to aid compliance with RCO targets. The Securities and Exchange Board of India (“SEBI”) has confirmed that such contracts fall outside the purview of the Securities Contracts (Regulation) Act, 1956, thereby placing them squarely under CERC’s jurisdiction. The draft guidelines are intended to offer designated consumers, particularly those in the Commercial and Industrial (“C&I”) sectors, a new mechanism for RE procurement, alleviating some of the challenges associated with existing routes such as open access and captive generation.

CERC has invited stakeholder comments on the draft guidelines by July 11, 2025.

Overview of the Draft Guidelines

VPPA is a form of a corporate power purchase agreement (“CPPA”). A VPPA or a CPPA is not defined under the Indian legislation yet. However, the same is already internationally recognised. VPPAs, though not yet defined under Indian law, are internationally recognised contractual arrangements, functioning as financial contracts for difference, whereby corporates agree to pay RE generators a fixed price over a fixed term, while the power is sold on the exchange. The differential between the exchange price and the agreed VPPA price[1] is settled financially, and RECs corresponding to the power sold are transferred to the corporate buyer. This model enables compliance with RE obligations without requiring physical delivery of electricity.

The CERC draft guidelines set out the following key provisions:

a VPPA is defined as a bilateral NTSD-based OTC contract between a consumer or designated consumer and a registered RE generator, with the consumer committing to pay the VPPA price for the term of the contract;
the RE generator may sell electricity through power exchange or any other mode authorised under the Electricity Act 2003, and the difference between the VPPA price and the market price will be settled bilaterally between the contracting parties as per mutually agreed terms;
if the RE generator sells electricity components through power exchanges (in Day Ahead Market (the “DAM”) and/or Real Time Market (the “RTM”) market segments) or any other mode authorised under the Electricity Act 2003, the RECs received thereby will be transferred to the consumer or designated consumer who can use such RECs for RCO compliance or for claiming green attributes. Such RECs will not be allowed to be traded;
the RE project must be registered under the Central Electricity Regulatory Commission (Terms and Conditions for Renewable Energy Certificates for Renewable Energy Generation) Regulations, 2022, or as amended;
VPPA contracts are non-tradable and non-transferable and are binding on the parties for their full duration. The contract may be executed directly, through a trader, or via a CERC-registered OTC platform; and
upon receipt of RECs, the consumer must notify the REC Registry, which will then extinguish the certificates accordingly.

Context and implications

Historically, C&I consumers in India have pursued RE procurement through 3 (three) primary routes: (a) on-site generation; (b) intra-state offsite generation, and (3) REC purchases. However, regulatory barriers at the state level such as cross-subsidy surcharges, wheeling charges, and net metering limitations have constrained uptake.

The introduction of VPPAs provides a fourth route that enables inter-state RE procurement without physical delivery. This approach aligns with international practices where VPPAs operate outside the purview of traditional energy regulatory approvals but are subject to financial regulations in some jurisdictions. By facilitating financial settlements tied to RE generation, VPPAs support designated consumers in meeting statutory and voluntary RE targets under the RCO framework introduced by the Energy Conservation (Amendment) Act, 2022.

Conclusion

The CERC draft guidelines represent a welcome and timely intervention in India’s RE transition. By formalising VPPAs as legitimate instruments under Indian law and clarifying their regulatory treatment, the draft lays the groundwork for broader participation by C&I consumers in the RE market. While the guidelines address key jurisdictional and structural aspects, they stop short of detailing monitoring mechanisms, dispute resolution frameworks, or comprehensive risk mitigation protocols, gaps that must be addressed in the final regulation or through follow-on implementation rules.

Maintaining price competitiveness will also be crucial for the viability of VPPAs, especially in a market heavily influenced by long-term thermal contracts. Nonetheless, by reducing geographic and regulatory friction in RE procurement, the framework opens the door to more dynamic and market-aligned approaches for both consumers and generators.

This Prism has been prepared by:

Karan Mitroo
Partner

Poonam Verma Sengupta
Partner

Gayatri Aryan
Principal Associate

For more details, please contact [email protected]

[1] the “VPPA Price” is a pre-agreed price of electricity between a consumer or a designated consumer and an RE generator either directly or through a trader or by listing on an OTC platform.

Tags CERC, Clean Energy India, Energy Transition, India RE, JSA Legal Update, Power Purchase Agreements, RE Policy, Renewable Energy, Sustainability Law, Virtual PPA

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