Energy Goals; NEP is leading India out of darkness. While highlighting reasons for such a policy initiative has been applauded in context of the previous Integrated Energy Policy (IEP).
Highlighting the difference between the IEP and NEP, Piyush Goyal, lauded the NEP for taking the following
- sharp decline of crude oil prices,
- change in solar energy technology,
- concern of climate change issues
- rural electrification agenda into account.
However, the IEP laid out a roadmap and provided a basket of specific measures to meet specific objectives.
IEP recommended the conversion of the Indian Renewable Energy Development Agency (IREDA) into a national refinancing institution on the lines of NABARD.
This was done specifically to advance clean energy.
The NEP however fails to address the rampant uncertainties around renewable purchase obligations (RPO) and renewable energy certificates (REC)
(Discoms) have been assured of government support for implementation of RPO and REC obligations.
NEP, recommended the opening up of the entire power sector value chain to private investment .
NEP’s continues focusing on utilising coal powered thermal plants for securing the base load requirement to meet rising energy demand.
NEP proposes that India should on expand its thermal power capacity to 441 GW in 2040 from 125 GW in 2012.
The NEP prescribes grid-based supply to all households to be India’s primary endeavour, with renewable energy implemented to address the access issue only in cases where grid power is unavailable.
As India’s importance and role in the global energy markets continues to grow, it needs to be strategic in its energy planning.
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