National Energy Policy (NEP)

India's energy policies are geared toward rapid energy development, whereas its energy policy now emphasizes energy conservation. To achieve these two objectives, India needs to strike a balance.

What is National Energy Policy?

A draft of the National Energy Policy (NEP), on which the government think tank Niti Aayog has been working since 2015, was released in June.

Inter-ministerial meetings on the policy were presided over by the prime minister after the coal ministry voiced concerns about market-driven prices endangering Coal India's monopoly and profit margins.

Objectives of NEP

There are some objectives of NEP −

  • The National Energy Policy's goal is to provide a comprehensive framework for the whole energy industry, taking into account the many technology and fuel possibilities.

  • By 2018, all Census villages are expected to have electricity, and by 2022, universal electrification with constant power is expected.

  • By 2022, the Ministry of Petroleum hopes to reduce oil imports by 10% from 2014–15 levels and increase the manufacturing sector's contribution to our GDP from its current level of 16% to 25%.

  • The intended nationally determined contributions, or INDCs, aim to reduce emissions intensity by 33 to 35 percent above 2005 levels by 2030.The goal is to reach 175 GW of renewable energy capacity by 2022, and to increase the amount of capacity based on non-fossil fuels in the electricity mix to more than 40% by 2030.

Need for NEP

Due to some reasons this policy is needed-

  • According to the relationship between per capita power consumption and the Human Development Index, energy is recognized as a crucial component in enhancing the standard of living for inhabitants of any nation (HDI).

  • Thus, even while the primary goal of the nation's development agenda has been the eradication of poverty, India's energy policies have over the years specifically aimed to increase per capita energy consumption.

  • The availability of clean energy for all Indians is just as crucial as the country's goal of double-digit national economic growth.

  • The draft of the NEP comes as the energy industry looks for clarification. The sector needs unambiguous indications of the future pathways in response to assertions of excess electricity, even though widespread energy poverty continues to afflict the nation.

Highlights of NEP

NEP has some highlighted points as shown below-

  • The program will assist India in joining the global energy community without sacrificing the requirements of the world's poorest people, who will still get subsidies on all sources of energy directly into their bank accounts through direct benefit transfer.

  • Any form of subsidy at the production and distribution levels is prohibited by the principle of looking outward since it skews the market.

  • Instead, it has steadfastly backed DBT as the technological foundation for transferring subsidies to the underprivileged following the success of LPG.

  • According to Niti Aayog's draft strategy, India's energy consumption will probably increase by almost three times by 2040, which will result in a rise in overall primary energy imports.

  • In order to make India's economy "energy-ready" by 2040, it had also argued for a single regulator to oversee the country's energy sector.

  • The NEP will take the place of the UPA administration's Integrated Energy Policy and lay out the strategy for the government's push toward clean energy and a reduction in fuel imports.

  • The draft NEP predicts that over the years 2017 to 2040, the use of renewable energy will increase dramatically, energy intensity will be drastically reduced, per-capita energy consumption will double, and per-capita electricity consumption will triple.


India's national energy policy is centered on addressing the nation's expanding energy shortage and identifying applications for alternative energy sources, such as nuclear, solar, and wind energy. Energy conservation is one of the main objectives of India's energy policy. This is especially true thanks to the provisions of the Energy Conservation Act of 2001, which included requirements like regulating big energy consumers, developing the Energy Conservation Building Code to establish energy standards for buildings, and establishing the Bureau of Energy Efficiency to carry out the act's enforcement.


Q1. What is the energy policy of India 2022?

Ans. India provided at least INR 5 lakh crore (USD 68 billion) to support the energy sector in FY 2022, including over INR 2.25 lakh crore (USD 30 billion) in the form of subsidies. Subsidies for fossil fuels remained over four times higher than subsidies for clean energy in FY 2022.

Q2. Who created national energy policy?

Ans. The president of the United States introduced the legislation. The package represented a significant advancement on the supply and demand sides of energy legislation. The Energy Security Act, a set of eight bills signed by President Carter in 1980, quickly followed the package.

Q3. What is national energy conservation policy?

Ans. The National Energy Conservation Policy seeks to foster an atmosphere that will enable a shift from current wasteful behaviors to future sustainable energy and environmental practices.

Q4. What is the National energy policy 2005?

Ans. Under the federal Energy Policy Act 2005, Congress established a legal requirement for all federal agencies to derive 5% of their electricity consumption from renewable resources between 2010 and 2012, rising to 7.5% thereafter (SEIA, 2015a).

Updated on: 17-Feb-2023


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