Ministry of Power Releases Draft National Electricity Policy 2026 to Replace NEP 2005

The Ministry of Power releases the Draft National Electricity Policy (NEP) 2026 to replace the existing NEP notified in 2005. The draft provides targets for per capita electricity consumption and introduces provisions on tariff revision, cybersecurity, distribution operations, and storage integration.

Draft National Electricity Policy (NEP) 2026:

Dimension	Key Details
Issuing authority	Released by the Ministry of Power
Replaces	Provides for replacing the existing NEP notified in 2005
Per capita electricity consumption targets	2,000 kWh by 2030; provides for over 4,000 kWh by 2047
Index-based annual tariff revision	Mandates tariffs linked to a suitable index for automatic annual revision
Cybersecurity and data storage	Establishment of a robust cybersecurity framework; mandates storage of power sector data within India
Distribution System Operator	Establishment of a DSO; authorises facilitating sharing of the network and integration of distributed renewables, storage, and Vehicle-to-Grid (V2G) systems
Renewable energy generation and storage	Market-based deployment of storage; provides for use of emerging Battery Energy Storage System (BESS) technologies
Universal electrification	Achievement in 2021 ensuring electricity access to all households
Unified National Grid	Being operational since 2013 enabling seamless power transfer across states
Per capita consumption	Reaching 1,460 kWh in 2024–25
DISCOM finances	DISCOMs having accumulated significant losses and carrying substantial outstanding debt
Cost-reflective tariffs	Absence of reflection of actual costs, creating revenue gaps and inefficiencies
Industrial tariffs and cross-subsidisation	Cross-subsidisation resulting in high industrial tariffs and undermining global competitiveness of Indian industry