Amendment in National Electricity Policy 2005 (NEP)

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Recently, the government will amend the National Electricity Policy (NEP), 2005, under which the new National Electricity Policy (NEP) 2021 will also consider demand, climate goals, etc.

  • Simultaneously, the process of drafting the NEP 2021 by a specially constituted expert committee in the light of climate commitments is also underway.
  • NEP-2021 will focus on optimal regulatory regime for the future. It will outline a framework of some of the successful initiatives. Also, it will set new medium-term objectives, which will be based on past achievements. It will also identify various measures to achieve these objectives.
  • New coal based power should not be generated unless the old units are replaced and/or the non-fossil sources are not able to meet the energy demand.
  • The old thermal power generation units should be decommissioned. Also, retrofitting existing thermal plants and scaling up to a flexible operation should be encouraged.

Renewable Energy: RE

Grid operations need to be optimized to meet the growing proportion of renewable energy.

India’s total electricity generation has grown at 5.85% per annum since 1990-91, but coal-based power still accounts for 55% of the total installed generation capacity.

Source – The Hindu

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