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

This year's draft NEP like its earlier versions underlines importance of coal-based power and why it is still too early to retire it despite growth in renewables

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