Modular ESS container project financing options in India 2026

Can ESS developers sell energy storage space?

ESS developers or owners are permitted to use, or lease or sell storage space to utility companies or load dispatch centers to buy and store electricity for future sale. As per Section 7 of the Electricity Act, 2002, the independent energy storage system shall be a delicensed activity at par with a generating company.

What are the applications and use cases of ESS?

Applications and Use Cases of ESS in Power Sector: ESS can be integrated at various levels of power sector, (i.e., generation, transmission, distribution) and therefore find use in applications such as storage with generation, transmission, distribution, standalone ESS, lease and sale of ESS and storage for ancillary services.

What are the challenges facing the ESS industry?

The Standalone ESS industry continues to face persistent challenges such as project cancellations, supply-chain constraints, weak domestic manufacturing and power purchase agreement delays. Players such as IndiGrid and HG Infra Engineering are focused on Battery + ESS (BESS).

Are ists transmission charges waived for ESS projects?

In pursuance of the National Tariff Policy, 2016, the transmission charges for using ISTS have been waived for ESS including BESS and PSPs projects commissioned up to June 30, 2025, subject to certain conditions.

Can electricity duty be levied on input of power for ESS?

Following the principle of avoidance of double taxation, electricity duty (ED), and cross subsidy surcharge (CSS) may not be levied on input of power for ESS as they merely facilitate conversion of energy where electricity is stored during off peak hours and discharged during peak hours.