The Union energy ministry has requested states and business associations to submit their options for framing the nationwide electrical energy coverage (NEP), 2021 throughout the subsequent three weeks. The federal government has constituted a committee, led by former chairperson of the Central Electrical energy Regulatory Fee Girish Pradhan, to give you NEP, 2021. The committee will submit its advised draft NEP, 2021 inside two months.
The final NEP was formulated in 2005, and since then, per capita energy consumption has almost doubled to the present degree of 1,208 items. Share of renewable electrical energy has elevated to 10% of general consumption from 0.75% in the identical interval.
The brand new coverage will give attention to enhancing the well being of electrical energy distribution firms (discoms), implementing price reflective tariff buildings, and establishing ample infrastructure by way of hydro and gas-based energy vegetation to accommodate the rising share of intermittent renewable vitality within the system. The brand new coverage will even goal to enhance the standard of electrical energy provide and improve the share of indigenous tools used throughout the ability worth chain.
To permit extra renewable vitality based mostly energy provide, the ability ministry has advised increased use of storage applied sciences by way of hydro energy vegetation, battery storage and different rising applied sciences corresponding to hydrogen storage. It has additionally advised retrofitting current coal-based energy vegetation to make them extra versatile in order that they will simply begin up or shut down based on era from photo voltaic and wind vegetation.
Acknowledging that coal-based energy remains to be the most cost effective supply of electrical energy, the ministry’s decision to the upcoming coverage said that upcoming coal vegetation ought to solely use probably the most environment friendly applied sciences.
The coverage will even seemingly bat for a differential tariff regime for finish shoppers, the place energy costs might be increased throughout hours of peak demand. Differential pricing will even assist the development of dearer pumped hydro storage vegetation, which will be essential for the sleek integration of renewable vitality within the system. The decision additionally talks about rushing up the set up technique of typical hydro vegetation.
To enhance discoms, the federal government has pushed extra non-public participation within the sector and improve competitors by eradicating the monopolies of state-run companies. The decision additionally recommends obligatory set up of good pre-paid meters to regulate pilferage. It additionally advocates 100% metering of distribution transformers inside three years from the present degree of 37%. The facility ministry has reiterated Centre’s stance which advocates states to offer subsidy to legit shoppers by way of direct profit switch.