Image-bing
India Unveils Draft National Electricity Policy 2026 to Power Viksit Bharat @2047
Summary: India has released the Draft National Electricity Policy (NEP) 2026, a landmark roadmap to modernise the power sector, boost clean energy, cut losses, and ensure affordable, reliable electricity for all-supporting the national vision of Viksit Bharat @2047.
The Ministry of Power has officially released the Draft National Electricity Policy (NEP) 2026, signalling a major policy shift to prepare India’s power sector for the next two decades. Once finalised, it will replace the existing NEP of 2005, which laid the foundation for India’s electricity reforms.
Over the last 20 years, India’s power sector has transformed dramatically-generation capacity has grown four times, 100% household electrification was achieved in 2021, and a unified national grid has enabled seamless power flow across states. Per-capita electricity consumption reached 1,460 kWh in 2024–25, reflecting rising demand from households, industry, and infrastructure.
Yet, challenges remain-especially in power distribution, where high losses, mounting debt, and non-cost-reflective tariffs continue to affect efficiency and competitiveness.
The Draft NEP 2026 aims to build a future-ready, financially viable, and climate-aligned power sector, while ensuring affordable and quality electricity for citizens and businesses.
Key National Targets
Resource Adequacy Planning
Financial Viability & Lower Power Costs
Exemption of cross-subsidy surcharge for:
Renewable Energy & Energy Storage
Thermal Power Transformation
Nuclear Power Expansion
Hydropower Boost
Power Markets & Transmission
Distribution Sector Reforms
Grid Operations, Cybersecurity & Skills
With its strong focus on clean energy, cost efficiency, grid resilience, and consumer protection, the Draft NEP 2026 offers a comprehensive blueprint to support India’s economic growth, climate goals, and energy security.
The policy is expected to invite stakeholder feedback before final notification.
(Source-pib)
Draft National Electricity Policy 2026 India,India Power Sector Reforms 2026,Viksit Bharat 2047 Electricity Policy
Draft National Electricity Policy 2026: A New Power Blueprint for India’s Growth
The Ministry of Power has officially released the Draft National Electricity Policy (NEP) 2026, signalling a major policy shift to prepare India’s power sector for the next two decades. Once finalised, it will replace the existing NEP of 2005, which laid the foundation for India’s electricity reforms.
Over the last 20 years, India’s power sector has transformed dramatically-generation capacity has grown four times, 100% household electrification was achieved in 2021, and a unified national grid has enabled seamless power flow across states. Per-capita electricity consumption reached 1,460 kWh in 2024–25, reflecting rising demand from households, industry, and infrastructure.
Yet, challenges remain-especially in power distribution, where high losses, mounting debt, and non-cost-reflective tariffs continue to affect efficiency and competitiveness.
Why Draft NEP 2026 Matters
The Draft NEP 2026 aims to build a future-ready, financially viable, and climate-aligned power sector, while ensuring affordable and quality electricity for citizens and businesses.
Key National Targets
- 2,000 kWh per capita electricity consumption by 2030
- Over 4,000 kWh by 2047
- 45% reduction in emissions intensity by 2030 (vs 2005)
- Net-zero emissions by 2070
Major Reforms & Interventions in Draft NEP 2026
Resource Adequacy Planning
- DISCOMs and SLDCs to prepare advance capacity planning
- CEA to ensure national-level power adequacy
Financial Viability & Lower Power Costs
- Automatic annual tariff revision linked to inflation index
- Fixed costs to shift towards demand-based charges
Exemption of cross-subsidy surcharge for:
- Manufacturing industry
- Railways & Metro systems
- Option to relax Universal Service Obligation for consumers above 1 MW load
- Faster and stronger dispute resolution mechanism
Renewable Energy & Energy Storage
- Market-based RE capacity addition
- Large-scale deployment of Battery Energy Storage Systems (BESS)
- Peer-to-Peer (P2P) energy trading from rooftop solar & storage
- Equal grid treatment for renewable and conventional power by 2030
- Incentives like VGF for storage & pumped hydro
- Push for domestic battery manufacturing
Thermal Power Transformation
- Integration of storage with thermal plants
- Repurposing old units for grid balancing
- Exploring industrial steam & district cooling use
Nuclear Power Expansion
- Adoption of Small Modular Reactors (SMRs)
- Commercial and industrial nuclear usage
- 100 GW nuclear capacity target by 2047
Hydropower Boost
- Faster development of storage-based hydro projects
- Benefits for flood control, irrigation, and energy security
Power Markets & Transmission
- Strong market surveillance to prevent manipulation
- Parity in transmission tariffs for RE by 2030
- Fair land compensation for Right of Way (RoW)
- Utilisation-based allocation of transmission connectivity
Distribution Sector Reforms
- Target of single-digit AT&C losses
- Shared distribution networks for competition
- Creation of Distribution System Operator (DSO)
- Support for EV-to-Grid (V2G) systems
- N-1 redundancy in cities with population over 10 lakh by 2032
- Underground cabling in congested urban areas
Grid Operations, Cybersecurity & Skills
- Functional unbundling of STUs
- Alignment with Indian Electricity Grid Code
- Mandatory India-based data storage
- Real-time visibility of Distributed Energy Resources
- Indigenous SCADA systems by 2030
- Domestic software for critical power applications
A Power Policy for Viksit Bharat @2047
With its strong focus on clean energy, cost efficiency, grid resilience, and consumer protection, the Draft NEP 2026 offers a comprehensive blueprint to support India’s economic growth, climate goals, and energy security.
The policy is expected to invite stakeholder feedback before final notification.
(Source-pib)
Draft National Electricity Policy 2026 India,India Power Sector Reforms 2026,Viksit Bharat 2047 Electricity Policy
Post a Comment