India has unveiled a draft of the 2047 National Energy Plan 2026, or NEP 2026.
Released by the Ministry of Power, the NEP draft provides a comprehensive blueprint to transform the nation into a power-surplus economy while meeting net-zero climate commitments.
It aims to increase per capita electricity consumption from the current 1,460 kWh to 2,000 kWh by 2030 and above 4,000 kWh by 2047. To fuel this, the NEP policy mandates a 100 GW nuclear capacity expansion and an aggressive renewable energy integration, aligning with India’s pledge to reduce emissions intensity by 45% by 2030.
“The Draft NEP 2026 provides a comprehensive blueprint for a future‑ready, financially viable, and environmentally sustainable power sector to provide reliable and quality power at an affordable price,” according to an official release.
| Highlights |
| Net-Zero Transition: It formally integrates the SHANTI Act, 2025, targeting 100 GW of nuclear power by 2047. |
| Financial Reform: Section 4.1 introduces the mechanism for automatic annual tariff revisions to decouple utility health from political cycles. |
| Industrial Boost: Specific provisions to exempt manufacturing and Metro Rail from cross-subsidy surcharges to lower the cost of doing business. |
| Grid Sovereignty: Mandates that all power system data must be stored on servers located within the territory of India to ensure cybersecurity. |
Ending the distribution monopoly:
In a move to rescue debt-laden DISCOMs—currently burdened by nearly ₹7.2 lakh crore in debt—the NEP draft proposes phasing out distribution monopolies. It encourages public-private partnerships (PPPs) and the listing of utilities to foster competition. The policy also introduces index-linked automatic annual tariff revisions to ensure financial discipline if state regulators fail to issue timely orders.
Industrial competitiveness and cross-subsidies:
A major highlight is the plan to exempt the manufacturing sector, Indian Railways, and Metro Rail from heavy cross-subsidies. By reducing these surcharges, the government aims to lower logistics costs and enhance the global competitiveness of Made in India goods. Furthermore, the draft pushes for single-digit aggregate technical & commercial (AT&C) losses across all states.
Technology:
Addressing threats, the NEP policy mandates a transition to indigenously developed SCADA systems by 2030 and requires all power sector data to be stored domestically. It also champions cloud energy storage and peer-to-peer trading of rooftop solar energy, allowing consumers to become active participants in the grid.
Financing the future:
The scale of the transformation is reflected in its funding requirements: an estimated ₹50 lakh crore by 2032 and ₹200 lakh crore by 2047.
The draft suggests establishing energy-specific funds under NaBFID and NIIF to unlock the capital necessary for this generational shift.
