The Ministry of Power, India has issued the Draft National Electricity Policy (NEP) 2026 that aims to transform the Indian power sector for meeting the vision of Viksit Bharat @2047. The forthcoming policy, once finalized, will replace the existing NEP which was notified in 2005.
India still relies largely on thermal power, with coal controlling both grid-based electricity and industrial captive power. In light of this, the draft NEP 2026 aims to adjust the nation’s fuel mix. Similarly, it also seeks to address challenges related to the distribution segment like high accumulated losses, outstanding debt, non-cost reflective tariffs and high cross-subsidization have provoked elevated industrial tariffs, thus impairing the global competitiveness of Indian industry.
In addition to it, the draft NEP 2026 emphasizes interventions ranging from resource adequacy, financial viability & economic competitiveness, renewable energy generation & storage to thermal generation, nuclear generation, hydro generation, power markets, grid operations, cyber security, data sharing, technology and skill development.
Also, with a stronger focus on energy storage to maintain grid stability as variable renewable energy increases, the draft NEP 2026 envisages to support the growth of renewable energy through market-based mechanisms and captive power plants. Hence, the draft NEP 2026 offers a comprehensive and holistic roadmap for a robust and ecologically sustainable power sector in India.