Power Sector Leaders Back Distribution Reforms Under New Electricity Policy

A high-level CEO Roundtable on Power Distribution, held under the draft National Electricity Policy 2026 at the Bharat Electricity Summit 2026, brought together industry leaders and policymakers to deliberate on critical reforms required to strengthen the distribution segment and ensure the long-term financial sustainability of distribution utilities.

The roundtable was chaired by Pankaj Agarwal, Secretary, Ministry of Power, and attended by chief executives and senior leadership from leading power sector organisations. Participants welcomed the draft National Electricity Policy 2026, describing it as a comprehensive and forward-looking framework that addresses emerging challenges in the sector while aligning with India’s long-term development objectives.

Industry leaders noted that the policy provides a clear strategic roadmap to support India’s transition towards sustained high economic growth, while strengthening the power sector’s capacity to meet rising demand. Discussions underscored the importance of ensuring that electricity supply keeps pace with the aspirations of Viksit Bharat 2047, which envisions a 30 trillion dollar economy and energy independence.

The draft policy sets ambitious consumption targets, aiming to increase per capita electricity usage to 2000 kilowatt hours by 2030 and over 4000 kilowatt hours by 2047. These targets are aligned with India’s climate commitments, including reducing emissions intensity by 45 percent from 2005 levels by 2030 and achieving net zero emissions by 2070, necessitating a decisive shift towards low carbon energy sources.

A central theme of the deliberations was the urgent need to improve the financial health of distribution companies. The policy outlines measures such as optimising power procurement through advance planning, reducing Aggregate Technical and Commercial losses and strengthening corporate governance frameworks. It envisages achieving single digit AT and C losses through phased implementation of smart meters with prepayment functionality, beginning with government, commercial and industrial consumers, alongside improved energy audits and accounting practices.

To enhance operational efficiency and accountability, the policy proposes the development of shared distribution networks to eliminate duplication of infrastructure. It also emphasises the adoption of GIS based asset mapping, consumer indexing and system automation to improve service delivery and system transparency.

Recognising the growing importance of distributed energy resources, the draft policy recommends the establishment of a Distribution System Operator to facilitate integration of distributed renewable energy, energy storage systems and vehicle to grid technologies. This approach is expected to enable local energy markets, enhance consumer participation and ensure secure and efficient grid operations.

The policy further prioritises improving quality and reliability of power supply through enhanced network planning and stricter enforcement of service standards. It proposes network redundancy at the distribution transformer level for cities with populations exceeding 10 lakh by 2032 and recommends underground cabling in densely populated urban areas. Ensuring universal access to electricity, particularly in border regions, remains a key objective.

The roundtable concluded with a strong consensus on the need for sustained and coordinated reforms in the distribution sector. Participants emphasised that improving the financial viability of distribution utilities is essential for supporting India’s broader economic ambitions and achieving its energy transition goals.

Leave a Reply

Your email address will not be published. Required fields are marked *