The Union power ministry has released a draft National Electricity Policy, projecting per capita consumption of 2,000 kilowatt-hour (kWh) by 2030 and over 4,000 kWh by 2047 in line with India’s vision for a $30 trillion economy and energy independence. In 2023-24, the per capita electricity consumption was 1,395 kWh.
The draft has also been formulated to keep India on track to achieve its climate commitments under the Paris Agreement. India has committed to cutting emissions intensity by 45% below 2005 levels by 2030 as part of its nationally determined contribution and to achieve net-zero by 2070, requiring a shift to low-carbon energy.
India has achieved over 250 GW of renewable energy capacity, including 50 GW of large hydro, which is over 50% of the total installed generation capacity.
The draft says India’s energy independence, aligned with low-carbon pathways, hinges on maximising non-fossil fuel-based generation, electrifying end-use sectors such as industry, transport, and cooking, using clean electricity, and encouraging energy efficiency and demand-side management.
It adds that coal-based power will continue to play a critical role in meeting baseload demand and ensuring the nation’s energy security. The draft underlines that new coal-based generating plants should be located near mines to reduce logistical issues associated with fuel transportation. It says coal-based plants, wherever feasible, should be retrofitted to enable flexible operation and equipped with storage systems to support integration of variable renewable energy
The draft identifies energy transition as a new challenge. By 2047, over 80% of the installed capacity and nearly two-thirds of total electricity generation were expected from non-fossil sources. The share of electricity in total energy consumption is projected to double.
Variable renewable energy, primarily solar and wind, now accounts for around 37% of the total installed generation capacity. But their intermittent nature necessitates integration with firm sources and energy storage systems. “There is an urgent need to expand and augment intra-state transmission networks to facilitate integration of variable renewable energy within the state. This will help reduce reliance on the expansion of costly inter-state transmission networks, needed to procure renewable energy from distant locations,” the draft says.
The draft notes nuclear power is a clean, reliable, and sustainable energy source with significant potential for India’s long-term energy security. It says the government will collaborate with the private sector to set up modular reactors, develop indigenous Bharat Small Reactors, and advanced nuclear technologies to expand nuclear capacity to 100 GW by 2047. It says nuclear projects should be eligible for green bond funding and that retired thermal plant sites may also be repurposed for nuclear power wherever feasible.
The draft notes India has harnessed only 32% of its 133 GW potential, even as hydropower is a renewable, reliable, and flexible energy source. It identifies geological risks, delays in environment and forest clearances, land acquisition difficulties, funding constraints, and procedural bottlenecks hindering hydropower development.
The draft asks states to accelerate the development of hydropower, use advanced technology for site assessments, and enhance baseline geological and seismic surveys to de-risk projects to address these challenges. It calls for further streamlining of the environment and forest clearances. “State governments will establish mechanisms to expedite project clearances and project execution issues,” the draft says.
The draft calls for an urgent need to undertake climate adaptation measures to safeguard lives and the economy against the backdrop of the climate crisis and declining per capita storage capacity for water and energy needs. “In this context, accelerating the development of storage-based hydroelectric projects is critical for flood moderation, irrigation, and energy security. Appropriate financing mechanisms will be put in place to support such projects and strengthen the nation’s water and energy security.”
The power ministry has sought comments on the draft policy within 30 days from January 20.
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