The Ministry of Power released the Draft National Electricity Policy (NEP) 2026 on January 21, 2026, outlining a comprehensive roadmap to overhaul India's power sector in alignment with the vision of Viksit Bharat @2047. Once finalised after stakeholder consultations, the new policy will replace the existing National Electricity Policy of 2005, reflecting two decades of fundamental changes in energy demand patterns, technological advancements, and evolving climate priorities under global commitments.

Key features of the draft policy include ambitious targets for achieving 500 GW of non-fossil fuel installed capacity by 2030, large-scale integration of battery energy storage systems to manage intermittent renewable generation, promotion of green hydrogen production and utilisation across industrial sectors, and comprehensive reform of power distribution companies (DISCOMs) to reduce aggregate technical and commercial losses. The policy also proposes strengthening of inter-state and intra-state transmission infrastructure for efficient evacuation of renewable energy from generation-rich states to consumption centres.

Additional priorities include accelerated electrification of the transport sector covering railways, metro systems, and electric vehicles, a unified national market for electricity trading to enable competitive pricing and consumer choice, and integration of smart grid technologies. The draft policy envisions India achieving 50 percent cumulative installed electric power capacity from non-fossil fuel sources by 2030 as part of the country's updated nationally determined contribution under the Paris Agreement. Public comments on the draft are invited until March 31, 2026.