Summary:
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### **1. OVERVIEW & CONTEXT**
* **Purpose:** A comprehensive revision of the 2005 National Electricity Policy, mandated by the Electricity Act, 2003.
* **Vision:** To support India’s goal of becoming a **”Viksit Bharat @ 2047″** (Developed India by 2047) by ensuring a **financially viable, environmentally sustainable, and competitive power sector**.
* **Core Vision Statement:** “Providing reliable 24×7 quality power through a financially viable and environmentally sustainable power sector furthering energy security at an affordable price.”
* **Key Drivers:** Addressing persistent distribution sector financial distress, integrating high shares of Variable Renewable Energy (VRE), reducing industrial tariffs for global competitiveness, and meeting climate commitments (45% emission intensity reduction by 2030, 50% non-fossil capacity by 2030, Net Zero by 2070).
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### **2. KEY BUSINESS & STRATEGIC POINTS**
#### **A. Financial Viability & Tariff Reform**
* **Cost-Reflective Tariffs:** Mandates that tariffs must fully recover costs from FY 2026-27, eliminating regulatory assets. **Automatic annual tariff revision** linked to an index is proposed if regulators fail to issue orders.
* **Reduced Cross-Subsidies:** Aims to progressively reduce cross-subsidies, ensuring no tariff falls below **50% of the Average Cost of Supply (ACoS)**. Suggests **exempting large industries (1MW+), Railways, and Metro Railways** from cross-subsidy surcharges to boost competitiveness.
* **Loss Reduction:** Targets **single-digit Aggregate Technical & Commercial (AT&C) losses**. Links central government support to performance-based incentives.
* **Timely Processes:** Tariff orders must be issued before the financial year starts, with true-up within the same year. Regulatory proceedings should conclude within **120 days**.
#### **B. Renewable Energy (RE) & Storage Acceleration**
* **Market-Based Growth:** Promotes mechanisms like **Virtual PPAs, Bilateral Contract Settlement**, and **Green Attributes** trading to attract investment.
* **RE Siting & Integration:** Advocates locating RE projects **near load centres** to reduce transmission costs and losses. Emphasizes **hybrid projects (RE + storage)** and strengthening **intra-state transmission**.
* **Storage Push:** Promotes **Pumped Storage Projects (PSPs)** and **Battery Energy Storage Systems (BESS)**, including incentives for domestic manufacturing of cells. Explores concepts like **”Cloud Energy Storage.”**
* **Consumer & Distributed RE:** Encourages **rooftop solar with storage** and **peer-to-peer (P2P) trading**. Proposes moving away from net metering for systems **above 5 kW** towards storage solutions.
* **Grid Parity:** Aims for **scheduling and deviation parity between RE and conventional power by 2030** to ensure grid stability.
#### **C. Conventional Generation Strategy**
* **Thermal (Coal):** Acknowledges its continued role for **baseload and energy security**. Focuses on **improving flexibility** (retrofits for faster ramping, integration with storage), **efficiency** (renovation, modernization), and **cleaner operations** (biomass co-firing, coal gasification). Suggests using steam for **district cooling or industrial processes**.
* **Nuclear:** Sets an ambitious target of **100 GW by 2047**. Encourages **private sector participation** in Small Modular Reactors (SMRs) and advanced technologies. Proposes **Green Bond eligibility** and **two-part tariffs** for future plants.
* **Hydro:** Aims to tap unexploited potential through **streamlined clearances, land banks, innovative financing** (back-loaded tariffs), and incentives like **REC multipliers**. Prioritizes **storage-based hydro** for flood moderation and grid stability.
#### **D. Market Development & Competition**
* **Deepening Markets:** Promotes **Bilateral Contract Settlement** and **standardized contracts** on exchanges. Encourages routing of long-term PPA power through exchanges.
* **New Mechanisms:** Explores introducing **Capacity Markets** (especially for gas-based plants) and expanding **Ancillary Services Markets** to include demand response.
* **Open Access Reforms:** Mandates **stable, predictable charges** and a **progressive reduction trajectory** for cross-subsidy surcharges to facilitate long-term open access.
* **Aggregation:** Supports **aggregators** to pool demand/supply from prosumers, storage, and EVs to enhance market access for small players.
#### **E. Distribution Sector Overhaul**
* **Competition & PPP:** Proposes **phasing out distribution monopolies** by allowing multiple licensees in the same area. Promotes **Public-Private Partnerships (PPPs)** and **listing of DISCOMs** on stock exchanges.
* **Smart Infrastructure:** Mandates **phased rollout of smart meters** (starting with government, C&I consumers) and **GIS-based asset mapping**. Suggests establishing **Distribution System Operators (DSOs)** for real-time network management.
* **Performance & Reliability:** Sets national benchmarks for reliability indices (SAIDI, SAIFI). Envisions **N-1 redundancy** at DT level in cities with >10 lakh population by 2032 and undergrounding in congested areas.
#### **F. Transmission & Grid Modernization**
* **Planning:** Focuses on **consumer-oriented, anticipatory planning** under Open Access, not requiring prior beneficiary agreements. Emphasizes **strengthening intra-state networks** for RE integration.
* **Efficiency & Tech:** Promotes **competitive bidding** as the default for transmission projects, **plug-and-play substations**, and technologies like **FACTS, Dynamic Line Rating, and Synchronous Condensers**.
* **Green Corridors:** Prioritizes **dedicated green feeders** and transmission infrastructure for RE zones and Green Hydrogen hubs.
* **Cross-Border:** Aims to strengthen interconnections under the **”One Sun One World One Grid (OSOWOG)”** vision.
#### **G. Consumer Centricity & Data**
* **24×7 Supply & Compensation:** Establishes a mandate for 24×7 reliable supply with **compensation for failures** to meet performance standards.
* **Digital Grievance Redressal:** Mandates robust online complaint portals and virtual hearings for grievance redressal.
* **Data Sharing Framework:** Requires all sector entities to share **operational and market data** (excluding personal info) to foster transparency and innovation. **CEA** will act as the central data hub.
#### **H. Cybersecurity & Technology**
* **Cybersecurity Framework:** Mandates alignment with national policy, **”security by design,”** and **data localization** (control systems must be in India). Establishes **CSIRT-Power** as the central coordination agency.
* **Make in India & R&D:** Encourages **indigenization** of critical technologies, domestic software (e.g., SCADA by 2030), and industry-academia collaboration. Supports R&D funding and phased manufacturing programs.
#### **I. Energy Efficiency & Sustainability**
* **Agriculture:** Targets **solarisation of all agriculture feeders backed by storage by 2030** to reduce subsidy burden.
* **Buildings & Appliances:** Promotes stringent **Energy Conservation Building Codes (ECBC)** and **highest efficiency standards for appliances**.
* **Industries:** Large energy-intensive units to transition to the **Carbon Credit Trading Scheme (CCTS)**.
* **Waste-to-Energy:** Encourages municipal solid waste-to-energy projects and **co-firing of biomass pellets** in thermal plants.
#### **J. Financing**
* **Massive Investment Need:** Projects requirements of **~₹50 lakh crore by 2032 and ~₹200 lakh crore by 2047**.
* **Innovative Vehicles:** Proposes creating **sector-specific funds** under institutions like **NaBFID and NIIF**, and using **risk-mitigation instruments** (first-loss guarantees) to enhance bankability.
* **Green Finance:** Aims to develop a **Climate Finance Taxonomy** to attract concessional green financing.
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### **3. TARGETS & METRICS**
* **Per Capita Consumption:** 2,000 kWh by 2030; over 4,000 kWh by 2047.
* **Non-Fossil Capacity:** 50% by 2030 (NDC target); over 80% of installed capacity by 2047.
* **Loss Reduction:** Single-digit AT&C losses for states.
* **Grid Reliability:** N-1 redundancy in major urban areas by 2032.
* **Solarisation:** Complete solarisation of agriculture feeders by 2030.
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