Rewiring the Nation: Strategic Shifts in the NEP 2026 Draft

The Draft National Electricity Policy (NEP) 2026 has been released, outlining long-term targets and reforms for India’s electricity sector.

The policy projects per capita electricity consumption to increase to 2,000 kWh by 2030 and exceed 4,000 kWh by 2047, in line with India’s broader climate commitments. These include a 45 percent reduction in emissions intensity by 2030 and achieving net-zero emissions by 2070. The draft places strong emphasis on clean energy expansion, prioritising renewable capacity additions, energy storage deployment, and modernisation of the national power grid.

In addition, the NEP proposes structural reforms in power tariffs and distribution companies to address persistent financial stress in the sector. It promotes market-based mechanisms for renewable power procurement, encourages the adoption of battery energy storage systems, and supports domestic manufacturing of battery components. The policy also highlights the repurposing of thermal power plants for grid stability and calls for a gradual expansion of nuclear power capacity.

News by Rahul Yelligetti.