Revamping Power: The NEP 2026 Vision

The draft National Electricity Policy 2026 seeks comments to address distribution challenges, high tariffs, and cross-subsidisation. It proposes grid resilience, consumer services, cybersecurity, and a shift to low-carbon pathways to meet India's climate goals. The plan also includes skill development, market regulation, and renewable energy integration.

The Ministry of Power has invited stakeholder comments on the draft National Electricity Policy (NEP) 2026, aiming to tackle persistent distribution challenges, such as high losses and debts faced by discoms, along with non-cost-reflective tariffs and cross-subsidisation. These issues have led to elevated industrial tariffs, thus affecting India's global competitiveness.

The draft policy focuses on enhancing competition, grid resilience, and consumer-centric services. It aligns with national climate commitments, promoting a shift toward low-carbon energy. Key policy measures include setting ambitious electricity consumption targets, reducing emission intensity, and achieving net-zero status by 2070.

The policy emphasizes resource adequacy, cybersecurity, and skill development. Proposals include functional unbundling of utilities, revising tariffs automatically, supporting discoms with new operators, and integrating renewable energy with traditional sources. Stakeholders have 30 days to submit their feedback on these comprehensive strategies.

(With inputs from agencies.)