, National Energy Policy (NEP)
Policy status:In Force
Date Effective:2006
Date Ended:2017
Policy Type:Policy Support>Strategic planning, Policy Support, Regulatory Instruments, Research, Development and Deployment (RD&D), Regulatory Instruments>Monitoring, Regulatory Instruments>Obligation schemes , Regulatory Instruments>Other mandatory requirements, Regulatory Instruments>Auditing
Policy Target:Framework/ Multi-sectoral Policy, Small and Medium sized Enterprises (SMEs), Appliances, Buildings, Industry
Agency:Planning Commission; Expert Committee
Legal References:Planning Commission (2005) Draft Report of the Expert Committee on Integrated Energy Policy.

At the direction of the Prime Minister and Deputy Chair of the Planning Commission, an expert committee was established to develop a comprehensive energy policy in 2004. The Integrated Energy Policy, released in August 2006, addresses all aspects of energy, including energy security, access and availability, affordability and pricing, efficiency and the environment. In relation to renewable energy, the policy proposed:

  • the phase-out of capital subsidies by the end of the 10th Plan linked to creation of renewable grid power capacity;
  • requiring power regulators to seek alternative incentive structures that encourage utilities to integrate wind, small hydro, cogeneration and so on into their systems, and the linking of all such incentives to energy generated as opposed to capacity created;
  • requiring power regulators to mandate feed-in laws for renewable energy, where appropriate, as provided under the Electricity Act 2003.

The policy also made a range of more specific recommendations in relation to particular renewable energy sources, including mini hydro, wind and wood gasification power.

To promote and assess the energy policies of India, the Expert Committee on Integrated Energy Policy breaks down a working paper into the following segments and themes:

  • I: Challenges
  • II: Energy requirements
  • III: Supply Options
  • IV: Energy Security
  • V: Energy Policy Options/Initiatives
  • VI: Policy for Energy Efficiency and Demand Side Management
  • VII: Policy for Renewable and Non-Conventional Energy Sources
  • VIII: Household Energy Security: Electricity and Clean Fuels for All
  • IX: Energy R&D
  • X: Power Sector Policy
  • XII: Oil and Gas Sector Policy
  • XIII: Energy-Environment Linkages
  • Concluding Comments

Of the aforesaid chapters, one can extrapolate general goals:

  • Reduce energy intensity by 20%
  • Increase average gross efficiency of power generation up to 34% (from 30.5%)
  • The broad vision behind the energy policy is to reliably meet the demand for energy services of all sectors, including the energy needs of vulnerable households in all parts of the country. 
  • The goal is to provide safe and convenient energy at the lowest cost in a technically efficient, economically viable, and environmentally sustainable manner.
  • Assured supply of such energy and technologies at all times is essential to providing energy security to India.  
  • Coal to remain major source; gas not for power generation; fully develop hydro and nuclear potential; rationalise fuel prices; lower energy intensity - higher energy efficiency; promote urban transport; augment domestic resources; address climate change concerns.


Last modified: Thu, 22 Feb 2018 11:16:40 CET