SDG 7: Affordable and Clean Energy | SDG 9: Industry, Innovation and Infrastructure
Ministry of Power | Central Electricity Authority (CEA)
The Ministry of Power has released the Draft National Electricity Policy 2026 for public consultation, aiming to replace the two-decade-old policy of 2005. The draft sets a roadmap for India’s power sector to support the vision of Viksit Bharat @ 2047, targeting a leap in per capita electricity consumption from 1,460 kWh in 2024–25 to 2,000 kWh by 2030 and over 4,000 kWh by 2047. To ensure these goals are met with high reliability, the policy introduces Resource Adequacy (RA) as a core planning intervention, mandating decentralized capacity expansion through coordinated plans at the utility, state, and national levels.
Strategically, the policy aligns with India’s climate goals of reducing emissions intensity by 45% by 2030 and achieving Net-Zero by 2070, necessitating a rapid shift toward low-carbon pathways.
Key Strategic Interventions
Nuclear Expansion: In line with the SHANTI Act, 2025, the policy targets 100 GW of nuclear capacity by 2047 through advanced Small Modular Reactors (SMRs) and commercial adoption.
Financial Viability: Introduction of an automatic annual tariff revision index and demand charges to recover fixed costs, aimed at eliminating cross-subsidization that currently inflates industrial tariffs.
Renewable Energy & Storage: Aims for parity between RE and conventional sources in scheduling by 2030, supported by Viability Gap Funding (VGF) for Battery Energy Storage Systems (BESS).
Distribution Reform: Targets single-digit AT&C losses and the creation of Distribution System Operators (DSO) to manage distributed renewables and Vehicle-to-Grid (V2G) integration.
Grid Resilience: Mandatory storage of power sector data within India for data sovereignty and transition to indigenous SCADA systems by 2030.
What is ‘Resource Adequacy (RA)’ planning and how does it change under the Draft NEP 2026? Resource Adequacy (RA) is a planning process to ensure that there is sufficient generating capacity and energy available to meet projected demand with a required degree of reliability. Under the Draft NEP 2026, RA planning is being decentralized. DISCOMs and State Load Despatch Centres (SLDCs) are now mandated to prepare long-term RA plans at the utility and state levels. The Central Electricity Authority (CEA) will then consolidate these into a National Resource Adequacy Plan to ensure grid stability and prevent future power deficits across the country.
Policy Relevance
The policy shifts India from a phase of “universal access” (achieved in 2021) to “high-consumption reliability” and global competitiveness.
Industrial Competitiveness: Exemption of cross-subsidies for the manufacturing sector, railways, and metros will significantly reduce logistics and production costs.
Technology Sovereignty: Developing domestic software for critical power applications reduces reliance on foreign SCADA and cybersecurity frameworks.
Energy Security: Prioritizing storage-based hydro and multi-purpose nuclear projects ensures water, food, and energy security simultaneously.
Market Efficiency: A stronger regulatory framework for market monitoring aims to prevent price manipulation and “gaming” in power exchanges.
Relevant Question for Policy Stakeholders: How can State Regulatory Commissions effectively balance the phase-out of cross-subsidies for industrial consumers while maintaining affordable electricity rates for low-income domestic households?
Follow the full news here: DRAFT NATIONAL ELECTRICITY POLICY (NEP), 2026