National Electricity Policy
National Electricity Policy (NEP) was formulated by the Ministry of Power, mandated under Section 3(1) of Electricity Act 2003 in 2005. While aiming to lay down guidelines for accelerated development of the power sector, the policy guides the CERC and SERCs in addressing various aspects related to the electricity sector including the transmission sector. The policy mandates CTU and STUs for preparing 5-year and 15-year transmission plans for a reliable, integrated transmission network with long term visibility.
National Electricity Policy, 2005
Aims and Objectives
Access to Electricity - Available for all households in next five years.
- Availability of Power - Demand to be fully met by 2012.
- Supply of Reliable and Quality Power of specified standards in an efficient manner and at reasonable rates.
- Per capita availability of electricity to be increased to over 1000 units by 2012.
- Minimum lifeline consumption of 1 unit/household/day as a merit good by year 2012.
- Financial Turnaround and Commercial Viability of Electricity Sector.
- Protection of consumers’ interests.
[Clause No. 2.0]
- Availability of Power - Demand to be fully met by 2012.
- Supply of Reliable and Quality Power of specified standards in an efficient manner and at reasonable rates.
- Per capita availability of electricity to be increased to over 1000 units by 2012.
- Minimum lifeline consumption of 1 unit/household/day as a merit good by year 2012.
- Financial Turnaround and Commercial Viability of Electricity Sector.
- Protection of consumers’ interests.
[Clause No. 2.0]
National Electricity Plan
- CEA shall prepare short-term and perspective plan. The National Electricity Plan would be for a short-term framework of five years while giving a 15 year perspective.
- While conducting studies periodically to assess short-term and long-term demand, projections made by distribution utilities would be given due weightage.
- Integration of locations with transmission system and development of national grid including type of transmission systems and requirement of redundancies
[Clause No. 3]
- While conducting studies periodically to assess short-term and long-term demand, projections made by distribution utilities would be given due weightage.
- Integration of locations with transmission system and development of national grid including type of transmission systems and requirement of redundancies
[Clause No. 3]
Transmission Issues to be addressed
While planning new generation capacities, requirement of associated transmission capacity would need to be worked out simultaneously.
- The Central Government would facilitate the continued development of the National Grid for providing adequate infrastructure for inter-state transmission of power.
- The CTU is responsible for the national and regional transmission system planning and development. The STU is responsible for planning and development of the intra-state transmission system.
- Non-discriminatory open access shall be provided to competing generators supplying power to licensees upon payment of transmission charge to be determined by the appropriate Commission.
- The Act prohibits the State transmission utilities/transmission licensees from engaging in trading in electricity.
- The transmission capacity would be planned and built to cater to both the redundancy levels and margins keeping in view international standards and practices.
- Special mechanisms would be created to encourage private investment in transmission sector.
[Clause No. 5.3]
- The Central Government would facilitate the continued development of the National Grid for providing adequate infrastructure for inter-state transmission of power.
- The CTU is responsible for the national and regional transmission system planning and development. The STU is responsible for planning and development of the intra-state transmission system.
- Non-discriminatory open access shall be provided to competing generators supplying power to licensees upon payment of transmission charge to be determined by the appropriate Commission.
- The Act prohibits the State transmission utilities/transmission licensees from engaging in trading in electricity.
- The transmission capacity would be planned and built to cater to both the redundancy levels and margins keeping in view international standards and practices.
- Special mechanisms would be created to encourage private investment in transmission sector.
[Clause No. 5.3]
Resolution By
Ministry of Power
Date of Notification
2/12/2005