National Electricity Policy 2021
The Draft National Electricity Policy 2021 policy aims to make electricity available to all households in the next five years.
NEP 2021 covers multiple areas- grid operation, power markets, regulatory process, energy efficiency, optimal generation mix, transmission, distribution and many more. The draft talks about the creation of Electric Vehicle charging stations, Smart meters, power markets, environment and more.
The Ministry of Power has created a committee of experts to submit suggestions to the draft NEP 2021 within two months of the release of the draft. The members of the committee include members from state governments, the Ministry of New and Renewable Energy (MNRE), NITI Aayog, and the Central Electricity Authority.
National Electricity Policy addresses various issues such as rural electrification, generation, transmission, distribution, recovery of the cost of services and targeted subsidies, technology development and research and development, energy conservation, environmental issues, protection of consumer interests and quality standards, a competition aimed at consumer benefits and more.
Central Electricity Authority or CEA frames the National Electricity Plan once every 5 years and revise it from time to time according to the National Electricity Policy.
The plan is approved by the Central Government to be used by the prospective generating companies, transmission utilities and more. While evolving NEP, CEA consults all the stakeholders including state governments. CEA also interacts with institutions and agencies having economic expertise, especially regarding demand forecasting.