NITI Aayog is formulating National Energy Policy (NEP). The NEP builds on the achievements of the earlier Integrated Energy Policy (IEP), and sets the new agenda consistent with the redefined role of emerging developments in the energy world such as interventions required in key sectors like Petroleum & Natural Gas, Coal, Power, Renewable Energy and Nuclear power.
The NEP also addresses energy efficiency, subsidy and tax structure, energy governance, research and development and air quality concerns. There are four key objectives of NEP, namely, access at rational prices, improved security and independence, greater sustainability and economic growth, and enhancing the competitiveness of Indian economy by meeting the rising energy demand efficiently.
The draft of NEP prepared by NITI Aayog was circulated for inter-ministerial consultations in October, 2017. Based on the comments of the Ministries and Departments as well as further deliberations in the NITI Aayog, revised draft of NEP has been recirculated on June 2018 for seeking comments of concerned Ministries and Departments. After receipt of the comments from revised draft, the draft of NEP will be put up for approval of the competent authority.
The draft of NEP circulated in October, 2017 contained assessment of energy demand upto 2040. Subsequently, it was felt that long term assessment up to 2040 would lead to extreme uncertainties in the currently volatile and unpredictable energy economics, which would not be suitable for framing the policy. Accordingly, the time horizon of NEP has been restricted to 2030, which also synchronizes with India’s Nationally Determined Contributions (NDCs).
According to draft NEP, the Government proposes to meet the growing energy demand in the following manner:
- Increasing domestic production/supply by enabling suitable policy framework.
- Harnessing renewable energy potential to the maximum.
- Enhanced efficiency measures for demand reduction and better energy conversion.
- Promoting alternate domestic sources of energy.