With a view to modernizing India's Power sector over next 2 decades, the Ministry of Power released the Draft National Electricity Policy (NEP) 2026.
The main aim is to increase per capita electricity use from 1,460 units (kWh) today to 2,000 units by 2030 and 4,000 units by 2047 and aligning with India's target of Net-Zero emissions by 2070.
Key reforms:
Financial reforms:
• Currently, power companies often wait years for state regulators to approve price hikes, leading to massive debt. Now, the hikes will be automatic and index linked.
• Manufacturing, Railways, and Metros will likely be exempt from the extra surcharges - enabling the "Make in India" process further.
• The policy also aims to remove monopoly by providing Multiple providers on shared lines.
The Nuclear and Green Energy push:
• Aim for 100 GW Nuclear Energy by 2047. The critical impact of Shanti Bill has been discussed in our Newsletter dated Dec 31, 2025.
• Renewable Energy will be treated as mature industry with full grid responsibility. For coal, old plants will be repurposed to support the grid.
Technology & Security:
• This section focuses on making India’s power grid self-reliant and smart. It moves away from just managing cables and poles to managing a digital, data-driven network.
Our view:
The introduction of the Shanti Bill, for unshackling the nuclear energy sector a few weeks back, followed by the Draft National Electricity Policy now shows the intent of the Government to make the Indian Power sector more reliable, green and cheap for Industry. This is another sector where India gives priority to become Viksit Bharat by 2047, with an ultimate aim of Net-Zero Green House emissions by 2070.
The demand for electricity has shot up in countries leading in AI, and India will be no exception. Though only 50 percent of our installed capacity of 500 GW plus is utilised on any day, there are plenty of issues in the distribution market that makes availability of power, costly in India. The CERC has to pick up the ball from here.
___________________
Press Release:Press Information Bureau
"All comments are welcome. However, please note that they will be moderated to ensure no abusive content is posted."
