Feb 2, 2026
The Ministry of Power has initiated public consultation on a new Draft National Electricity Policy (NEP) 2026, according to a report from Power Technology. The draft policy proposes reforms in nuclear power expansion, renewables integration, grid modernization, and financial sustainability to meet India’s energy and climate targets, replacing the first NEP from 2005.
The 40-page draft targets raising per capita electricity consumption to 2,000 kilowatt-hours (kWh) by 2030 and more than 4,000kWh by 2047, up from less than 1,500kWh in 2024-25. It aligns with India’s climate pledges, including a 45% reduction in emissions intensity below 2005 levels by 2030 and achieving net-zero emissions by 2070.
Concerning renewable energy, the policy aims for capacity addition through market-based mechanisms and captive power plants, as well as achieving parity between renewables and conventional sources in scheduling and deviation by 2030. The overarching goal is achieving “reliable 24 x7 quality power through a financially viable and environmentally sustainable power sector furthering energy security at an affordable price”.
The draft NEP describes nuclear power as “a clean, reliable, and sustainable energy source with significant potential for Indias long-term energy security”. To expand nuclear capacity to 100GW by 2047, the central government “will collaborate with the private sector for setting up modular reactors and developing Bharat Small Reactors, and advanced nuclear technologies”. Nuclear projects should be eligible for Green Bond funding.
Other measures include considering brownfield expansion, replacing coal-based captive plants with nuclear where feasible, fleet-mode implementation to establish local supply chains, and repurposing retired thermal plant sites for nuclear power. The policy suggests encouraging large commercial and industrial consumers to use nuclear-sourced power and exploring flexible operation designs and a two-part tariff for future nuclear plants. “These initiatives will be undertaken within the broader resource adequacy framework, while ensuring the nations energy security.”
The draft notes that India’s power sector will need Rs50tn ($546bn) by 2032 and Rs200,000bn by 2047 for generation capacity expansion, transmission, and distribution. It states: “Energy security and transition hinges on access to affordable capital and blended financing, as renewable and nuclear projects involve high upfront investments but low operational costs.”