National Electricity Policy
National Electricity Policy (NEP) was formulated by the Ministry of Power, mandated under Section 3(1) of Electricity Act 2003 in 2005. While aiming to lay down guidelines for accelerated development of the power sector, the policy guides the CERC and SERCs in addressing various aspects related to the electricity sector including the transmission sector. The policy mandates CTU and STUs for preparing 5-year and 15-year transmission plans for a reliable, integrated transmission network with long term visibility.
Draft National Electricity Policy, 2021
Aims and Objectives
- Promote clean and sustainable generation of electricity.
- Development of adequate and efficient transmission system.
- Revitalization of Discoms.
- Development of Efficient Markets for electricity.
- Supply of reliable and quality power of specific standards in an efficient manner.
- Move towards light touch regulation.
- Promotion of manufacturing of goods and services in India in the generation, Transmission and Distribution segments of the power sector under the Make in India initiative and Aatmanirbhar Bharat Abhiyan.
[Clause No. 2.0]
- Development of adequate and efficient transmission system.
- Revitalization of Discoms.
- Development of Efficient Markets for electricity.
- Supply of reliable and quality power of specific standards in an efficient manner.
- Move towards light touch regulation.
- Promotion of manufacturing of goods and services in India in the generation, Transmission and Distribution segments of the power sector under the Make in India initiative and Aatmanirbhar Bharat Abhiyan.
[Clause No. 2.0]
National Electricity Plan
- CEA shall prepare short-term for next 5 years and perspective plan for next 10 year period.
- Estimation of power demand would be done by CEA periodically every 5 years by way of 'Electric Power Survey'.
- CEA should carry out mid-term review of the Electric Power Survey and may make appropriate modifications in the projected demand, if required and accordingly also revise the NEP.
[Clause No. 3]
- Estimation of power demand would be done by CEA periodically every 5 years by way of 'Electric Power Survey'.
- CEA should carry out mid-term review of the Electric Power Survey and may make appropriate modifications in the projected demand, if required and accordingly also revise the NEP.
[Clause No. 3]
Transmission Issues to be addressed
- The CTU and the STUs should draw up implementation plans for Inter-state (lSTS) and lntra-state (lntra—STS), respectively and for up to next five (5) years period identifying specific transmission projects which are required to be taken up along with their implementation time lines.
- The principle for planning of transmission system should be that prior agreement between buyers and seller of electricity might not be a pre-condition for network expansion.
- The ISTS projects drawn up by CTU shall be placed before the National Committee on Transmission constituted by the Central Government. A similar mechanism should be drawn by State Governments for approval of Intra-STS projects of STUs.
- The transmission sharing framework is sensitive to distance, direction and related to quantum of flow. This framework shall be reviewed and revised to remove its inefficiencies that may come up during its application or due to changing market structure of our power sector. As far as possible, consistency needs to be maintained in transmission pricing framework in inter-State and intra-State systems.
- Import/export of power with neighboring countries should be promoted for mutual benefit, which ultimately will lead to optimum utilization of regional resources.
[Clause No. 6]
- The principle for planning of transmission system should be that prior agreement between buyers and seller of electricity might not be a pre-condition for network expansion.
- The ISTS projects drawn up by CTU shall be placed before the National Committee on Transmission constituted by the Central Government. A similar mechanism should be drawn by State Governments for approval of Intra-STS projects of STUs.
- The transmission sharing framework is sensitive to distance, direction and related to quantum of flow. This framework shall be reviewed and revised to remove its inefficiencies that may come up during its application or due to changing market structure of our power sector. As far as possible, consistency needs to be maintained in transmission pricing framework in inter-State and intra-State systems.
- Import/export of power with neighboring countries should be promoted for mutual benefit, which ultimately will lead to optimum utilization of regional resources.
[Clause No. 6]
Resolution By
Ministry of Power
Date of Notification
4/27/2021