NITI Aayog releases draft National Electricity Policy

NITI Aayog has released the draft of the National Electricity Policy (NEP), which broadly sets a new agenda consistent with the emerging developments in the energy world. It proposes actions on four main policy objectives – energy independence, energy access at affordable prices, greater sustainability and economic growth. As per the report, major transformations are anticipated on the energy demand and supply sides owing to evolving technology, consumer behaviour and air quality considerations. It also suggests interventions to reduce the gap in the energy consumption parameters of rural and urban areas. The report also projects that the share of solar and wind is expected to reach 14-18 per cent and 9-11 per cent in the electricity mix, and 3-5 per cent and 2-3 per cent in the primary commercial energy mix respectively, by 2040. The policy also calls for the corporatisation of Coal India Limited’s (CIL) subsidiaries and increase in coal mining in the private sector through comprehensive reforms in allocating coal blocks. The NEP would replace the Integrated Energy Policy framed by the erstwhile Planning Commission in 2008. To monitor the implementation of the proposed policy, the central government will constitute a committee, which will be headed by the prime minister and serviced by NITI Aayog, and will include members from relevant ministries.