National Electricity Policy-21 bats for quality power, private investment

The draft National Electricity Policy (NEP) which, under the Electricity Act, 2003 is a guiding policy for planning power generation, supply and investment, has emphasised on increasing private participation, especially in power distribution in its latest revision. The NEP has also introduced power quality, micro grids, pump hydro storage, real time power markets in the draft policy statement as key focus areas.

Underlining the most pertinent issue of the Indian power sector, the draft NEP has asked for major reforms in the power distribution sector, It says: “This sector is marred with many inefficiencies like high AT&C losses, inadequate system planning, poor upkeep and maintenance of equipment etc which are affecting the financial health of the discoms, and leading poor consumer satisfaction.”