Draft National Electricity Policy 2026 Maps India's Power Future

India’s power roadmap is getting a major reset. The Ministry of Power has released the Draft National Electricity Policy 2026, setting the direction for a faster, cleaner, and stronger electricity system aligned with the vision of “Viksit Bharat @2047.”

The Draft National Electricity Policy 2026 will replace the existing policy notified in 2005. That first policy focused on fixing basic gaps such as power shortages, low access, and weak infrastructure. Two decades later, the sector looks very different.

Installed generation capacity has grown four times, driven by strong private investment. Universal electrification was achieved by March 2021. A unified national grid has been operational since December 2013, and per capita power consumption reached 1,460 kWh in 2024–25. Power markets and exchanges have also improved efficiency and flexibility in procurement.

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Yet, deep issues remain. The distribution segment continues to struggle with high accumulated losses and mounting debt. Tariffs in many categories do not reflect real costs. Heavy cross-subsidization has pushed industrial power prices higher, hurting the global competitiveness of Indian industry.

The Draft National Electricity Policy 2026 sets out ambitious goals. By the year 2030 the draft expects on average all individuals in India will consume 2000 kWh and over 4000 kWh by any given individual by the year 2047. The Draft also anticipates India will be able to meet its climate change targets by significantly reducing emissions intensity to 45% of 2005 levels by the year 2030. Finally, the Draft recognizes there will be both a need to transition to cleaner, low-carbon sources of energy, and to develop resilient electricity services and infrastructure necessary for supporting future economic growth.