On April 27, 2021, the Draft National Electricity Policy 2021 has been released by Ministry of Power.
The policy aims to make electricity available to all households in the next 5 years.
NEP 2021 will help to supply reliable and quality power of specified standards efficiently manner at reasonable rates.
In compliance with section 3 of the Electricity Act 2003 the central government notifies the National Electricity Policy (NEP). NEP is framed by Central Electricity Authority (CEA) once in 5 years andrevise the same from time to time in accordance with NEP.
The Central government shall, from time to time, prepare the NEP & tariff policy, in consultation with the state governments and the authority for development of the power system based on optimal utilization of resources such as coal, natural gas, & hydro etc.
The first NEP was formulated in 2005.
Why is the need of NEP
Objectives of NEP, 2021
Significance of the Policy
It will facilitate retail competition & consumer choice.
Accelerate supply mix transition away from coal towards renewables.
Enhance financial viability of sector, especially distribution companies.
Electricity is an essential requirement for all facets of our life. It is a critical infrastructure on which the micro-economic development of the country depends. Thus, the NEP has introduced several new concepts starting from the need of micro grid in remote areas to having a real time power market & need for investment in pump hydro generation.