The Ministry of Power announced the release of a new “Draft National Electricity Policy (NEP) 2026”. The Draft NEP 2026 aims to transform the power sector for meeting the vision of Viksit Bharat @2047. The policy, once finalised, intends to replace the existing NEP which was notified in 2005. The first National Electricity Policy, notified in February 2005, addressed fundamental challenges of the power sector, including demand–supply deficits, limited access to electricity, and inadequate infrastructure. Since then, India’s power sector has witnessed transformational progress. Installed generation capacity has increased fourfold with significant private sector participation; universal electrification was achieved by March 2021; a unified national grid became operational in December 2013; and per capita electricity consumption reached 1,460 kWh in 2024–25. Power markets and exchanges have improved flexibility and efficiency in power procurement across the country.
In spite of these achievements, persistent challenges remain, particularly in the distribution segment like high accumulated losses and outstanding debt. Tariffs in several segments remain non–cost reflective, and high cross-subsidisation has resulted in elevated industrial tariffs, adversely affecting the global competitiveness of Indian industry. Against this backdrop, the Draft NEP 2026 sets ambitious yet necessary goals. The Policy targets per capita electricity consumption of 2,000 kWh by 2030 and over 4,000 kWh by 2047. It also aligns with India’s climate commitments, including reduction of emissions intensity by 45 percent below 2005 levels by 2030 and achievement of net-zero emissions by 2070, necessitating a decisive shift towards low-carbon energy pathways.