The policy, released by the Ministry of Power, is to replace the existing NEP notified in 2005.
- The Policy targets per capita electricity consumption of 2,000 kWh by 2030 and over 4,000 kWh by 2047.
Key Achievements of India’s Power Sector
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Key Features of Policy
- Index-Based Annual Revision: Tariffs will be linked to a suitable index for automatic annual revision.
- Cybersecurity: Establishment of a robust cybersecurity framework and mandatory storage of power sector data within India.
- Establishment of a Distribution System Operator (DSO): To facilitate the sharing of the network and integration of distributed renewables, storage, and Vehicle-to-Grid (V2G) systems.
- Renewable Energy Generation & Storage: Promotes Market-based deployment of storage, use of emerging Battery Energy Storage System (BESS) technologies, etc.
Need for the Policy
- Financial Sustainability of DISCOMs (Distribution Companies): They have accumulated significant losses and carry substantial outstanding debt.
- Cost-Reflective Tariffs: Absence of reflection of actual costs, creating revenue gaps and inefficiencies.
- Boosting Industrial Competitiveness: Cross-subsidisation has resulted in high industrial tariffs, undermining global competitiveness of Indian industry.
