Draft National Electricity Policy 2026 Moves to Cabinet for Inter-Ministerial Consultation: Power Secretary

New Delhi, Sep 25 (KNN) The draft National Electricity Policy (NEP) 2026 has been sent to the Union Cabinet for inter-ministerial consultation, Power Secretary Pankaj Agarwal said on Thursday.

“We have aggregated all the stakeholders’ comments. We have already moved the Cabinet note for the inter-ministerial consultation and I think it shouldn’t be taking very long,” Agarwal told reporters on the sidelines of the second Indian Power Sector Conference organised by FICCI, as quoted by PTI

The policy has been framed in line with the Viksit Bharat 2047 vision and aims to improve the financial and commercial viability of the electricity sector while ensuring adequate, reliable and quality power supply to meet peak demand and overall energy requirements.

Grid Management Emerges As Key Challenge

Agarwal said the challenges facing the power sector have changed significantly since the last NEP was notified in 2005.

While the earlier policy focused on improving electricity access, addressing shortages and developing renewable energy sources, the sector now faces challenges related to grid management, transmission capacity and integrating a growing non-fossil power base.

India already has around 300 GW of non-fossil power capacity, he said, adding that grid stability is therefore a key dimension of the proposed policy.

With greater fluctuations in power generation, particularly from variable renewable sources, the grid will need to operate with greater flexibility. Agarwal said utilisation of around 60 per cent of grid capacity, considering these fluctuations, would represent a reasonable level.

Focus On Domestic Smart-Meter Technology

The government is also working to develop chips for smart meters domestically to strengthen the domestic value chain, Agarwal said.

Chip developers and smart-meter manufacturers are working on the initiative, with some chip designs already under development, he added.

Coal Supply Keeps Pace With Rising Demand

On coal-based power generation, Agarwal said electricity demand increased by around 14 per cent in September.

Logistical challenges related to coal supply have been addressed, with more than 440 railway rakes being supplied daily, he said.

(KNN Bureau)