New Delhi, Jan 21 (NationPress) In an effort to build a future-ready, financially sustainable, and environmentally friendly power sector, the government announced on Wednesday the release of a new 'Draft National Electricity Policy (NEP) 2026' for public consultation with stakeholders.

The 'Draft NEP 2026' is designed to revolutionize the power sector to fulfill the vision of Viksit Bharat by 2047. The policy sets a target of 2,000 kWh per capita electricity consumption by 2030 and aims for over 4,000 kWh by 2047.

Additionally, it is aligned with India's climate commitments, which include reducing emissions intensity by 45% from 2005 levels by 2030 and achieving net-zero emissions by 2070, requiring a significant transition to low-carbon energy sources.

Once finalized, this policy will replace the current NEP established in 2005, as stated by the Ministry of Power.

As per the 'Draft NEP 2026', to ensure necessary capacity expansion through decentralized advanced planning, DISCOMs and SLDCs will create Resource Adequacy (RA) plans at both utility and state levels, in compliance with State Commissions' regulations.

“The CEA will develop a corresponding national plan to ensure adequacy at a national level,” the policy indicates.

Moreover, tariffs should be linked to a suitable index for automatic annual revisions if the State Commission does not pass a tariff order.

“Tariffs should progressively recoup fixed costs through demand charges to eliminate cross-subsidization among different tariff components and consumer categories,” it added.

Exempting cross-subsidies and surcharges on manufacturing industries, railways, and metro railways will enhance the economic competitiveness of Indian goods and lower logistics costs.

“Regulatory Commissions, in consultation with the Appropriate Governments, may exempt distribution licensees from the Universal Service Obligation for consumers with a contracted load of 1 MW and above,” the policy suggests.

Notably, strengthening the dispute resolution mechanism will alleviate the burden on Regulatory Commissions, enable quicker resolutions, and lessen the financial strain on consumers.

Regarding renewable energy generation and storage, it advocates for RE capacity increases through market-based mechanisms and captive power plants.

“Distribution licensees will install storage on behalf of small consumers, benefitting from economies of scale, while bulk consumers will facilitate the adoption of Distributed Renewable Energy (DRE) sources,” it states.

It also recommends trading surplus energy from DRE, as well as self-storage (P2P) or through aggregators, ensuring parity between RE and conventional sources in scheduling and deviations by 2030.

In accordance with the provisions of the SHANTI Act, 2025, the adoption of advanced nuclear technologies, development of Modular Reactors, establishment of Small Reactors, and use of nuclear energy by commercial and industrial consumers to reach 100 GW by 2047 are also advised.

The first National Electricity Policy, released in February 2005, tackled crucial challenges in the power sector, including demand-supply deficits, limited electricity access, and inadequate infrastructure.

Since then, India's power sector has undergone significant improvements. With its new provisions, the 'Draft NEP 2026' offers a detailed framework to deliver reliable and quality power at affordable prices.