The Ministry of New and Renewable Energy (MNRE) has issued an important clarification regarding NOC requirements for energy storage systems (ESS) in Firm and Dispatchable Renewable Energy (FDRE) projects. This update brings relief to developers facing regulatory uncertainty.
As per the latest clarification released on April 13, 2026, developers are not required to obtain a No-Objection Certificate (NOC) for selling electricity from ESS when the stored energy comes from non-renewable sources, especially during the pre-commissioning stage of renewable projects.
Understanding the MNRE NOC Exemption ESS Rule
FDRE projects are often developed in multiple phases. Components such as solar plants, wind systems, and Battery Energy Storage Systems (BESS) may not become operational at the same time.
In many cases, BESS infrastructure is completed earlier and charged using grid electricity. Since this power may not be renewable, confusion existed regarding its sale.
The MNRE NOC Exemption ESS clarification confirms that:
- NOC is not required for selling non-renewable stored power
- Such electricity cannot be classified as renewable energy
- It cannot be sold under renewable PPAs
Impact of the Clarification on FDRE Projects
This update removes a major compliance hurdle for developers. Earlier, due to ambiguity in regulations, some agencies required NOCs before allowing power sale.
Now, with the MNRE NOC Exemption ESS rule:
- Developers can monetize storage assets earlier
- Project execution becomes more flexible
- Financial risks are reduced
Right of First Refusal Clause Explained
The confusion mainly arose from the “Right of First Refusal” clause. The MNRE has clarified that this clause applies only to renewable energy generated from commissioned solar or wind plants.
It does not apply to non-renewable electricity discharged from ESS during the interim phase. This clarification ensures clear regulatory boundaries for developers.
Benefits for Renewable Energy Developers
The MNRE NOC Exemption ESS update provides several benefits:
- Faster project execution
- Reduced regulatory delays
- Improved investment confidence
- Better utilization of storage systems
This is especially useful for large-scale hybrid and storage-based projects across India.
Future of ESS in India
Energy Storage Systems (ESS), particularly BESS, are becoming critical for integrating renewable energy into the grid. With clear policies like MNRE NOC Exemption ESS, India is moving towards a more flexible and efficient energy ecosystem.
The clarification is expected to accelerate the adoption of hybrid renewable projects and strengthen the country’s clean energy transition.
The MNRE NOC Exemption ESS clarification is a major step forward for India’s renewable sector. By removing the need for NOC in specific cases, the government has simplified regulations and improved project viability for developers.
This move will help boost renewable + storage integration and support India’s long-term energy goals.
