The National Energy Policy (NEP) aims to chart the way forward to meet the Government’s bold ambitions for India's energy sector developments. This includes providing access to electricity to all the Census villages by 2018, and for universal electrification to be achieved, with 24x7 electricity by 2022. The share of manufacturing in GDP is projected to go up to 25% from the present level of 16%, while the Ministry of Petroleum is targeting reduction of oil imports by 10% by 2022 compared to 2014-15 levels. India's NDCs target reduction of emissions intensity of 33%-35% by 2030 over 2005, through increasing renewable energy capacity to 175 GWby 2022, and increase the share of non-fossil fuel based capacity in the electricity mix to above 40% by 2030. Recognising that the responsibility for energy policy is spread across different Ministries that hold the primary responsibility of setting their own sectoral agenda, an overarching policy framework is required to achieve the goal of energy security and facilitate coordination between these sources. This is also expected to mainstream emerging energy technologies, and provide consumer energy choices. The NEP builds on the achievements of the earlier overarching policy framework – the Integrated Energy Policy (IEP), and sets the new agenda consistent with the redefined role of emerging developments in the energy world.
There are four key objectives to India's broad arching energy policy under the IEP:
1. Access at affordable prices;
2. Improved security and Independence;
3. Greater Sustainability; and
4. Economic Growth.
To achieve these four objectives, seven areas of intervention were identified, of which energy efficiency is one.
(i) Energy Consumption by businesses, households, transportation and agriculture
(ii) Energy Efficiency/de-carbonisation measures on the demand side
(iii) Production and distribution of coal
(iv) Electricity generation, transmission and distribution
(v) Augmenting supply of oil and gas, both by domestic E&P, and through
acquisition of overseas acreages
(vi) Refining and distribution of oil and gas.
(vii) Installation, generation and distribution of renewable energy