New Draft Electric Policy 2026 targets 2.7x higher consumption,11-fold nuclear expansion, and net-zero by 2070
- IBEF
- January 22, 2026
The Ministry of Power has released the Draft National Electricity Policy (NEP) 2026 for public consultation, outlining a long-term Power Vision 2047 aimed at transforming India’s electricity sector and ensuring reliable, affordable, and sustainable energy access for all citizens. The draft policy projects a sharp rise in electricity consumption, targeting per capita usage of 2,000 kWh by 2030 and over 4,000 kWh by 2047, up from around 1,460 kWh in 2024–25, in line with economic growth, rapid industrialisation, and improvements in quality of life. The NEP aligns with India’s climate commitments, including reducing emissions intensity by 45% below 2005 levels by 2030 and achieving net-zero carbon emissions by 2070. To meet rising demand while advancing sustainability goals, the policy proposes large-scale integration of renewable energy, extensive deployment of energy storage solutions, and a significant expansion of nuclear power capacity to 100 GW by 2047, creating a diversified, low-carbon energy mix.
The Draft National Electricity Policy 2026 also proposes a series of structural and regulatory reforms to modernise the national electricity grid and strengthen electricity distribution systems. A key focus of these reforms is reducing Aggregate Technical & Commercial (AT&C) losses to single-digit levels and improving grid reliability across regions. Proposed measures include granting equal scheduling authority to renewable and conventional energy sources, establishing a Distribution System Operator (DSO) to manage distributed energy resources and peer-to-peer energy trading, and introducing performance-based tariff reforms to enhance financial viability. Additional proposals include encouraging investment in clean energy infrastructure through tariff stability mechanisms while safeguarding consumer interests. Together, the Draft National Electricity Policy and Power Vision 2047 aim to build an electricity sector that supports India’s economic growth while strengthening long-term climate resilience.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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