NEP 2026 Pushes Power Sector Reforms: CEO Roundtable Backs DISCOM Revamp, Smart Meter Rollout and Grid Modernization

In a significant step toward transforming India's power distribution landscape, a high-level CEO Roundtable convened at the Bharat Electricity Summit 2026 has strongly endorsed the draft National Electricity Policy, 2026 (NEP 2026), calling it a comprehensive roadmap to ensure financial sustainability of DISCOMs and support India's long-term economic ambitions.

Chaired by Shri Pankaj Agarwal, Secretary, Ministry of Power, the roundtable brought together CEOs and senior leaders from across the power sector, who emphasized that urgent reforms in distribution are critical to sustaining India's growth trajectory and energy transition.

NEP 2026 Aligns Power Sector with Viksit Bharat @ 2047 Vision

Industry leaders highlighted that NEP 2026 is strategically aligned with India's vision of becoming a USD 30 trillion economy by 2047 while achieving energy independence.

The Policy sets ambitious consumption targets:

• 2,000 kWh per capita electricity consumption by 2030

• Over 4,000 kWh per capita by 2047

These targets reflect the expected surge in demand driven by industrialization, electrification of transport, digital infrastructure, and rising living standards.

At the same time, the Policy remains aligned with India's climate commitments:

• 45% reduction in emissions intensity by 2030 (from 2005 levels)

• Net-zero emissions target by 2070

This dual focus underscores the need for rapid expansion of low-carbon and renewable energy sources, alongside a resilient and flexible grid.

DISCOM Financial Sustainability at the Core of Reforms

A central theme of the roundtable was the urgent need to restore the financial health of India's power distribution companies (DISCOMs), long plagued by losses and inefficiencies.

NEP 2026 proposes a multi-pronged strategy:

• Optimized power procurement through better demand forecasting and advance planning

• Reduction in Aggregate Technical & Commercial (AT&C) losses

• Strengthened corporate governance frameworks

A key target is to bring AT&C losses down to single-digit levels, a major structural reform aimed at improving sector viability.

Smart Metering and Digitalization to Drive Efficiency

The Policy places strong emphasis on technology-led transformation, particularly through:

• Phased rollout of smart meters with prepayment functionality

• Initial focus on government, commercial, and industrial consumers

• Expansion to broader consumer categories over time

Smart meters are expected to:

• Improve billing efficiency and revenue realization

• Enable real-time consumption tracking

• Empower consumers with better control over energy usage

Complementing this, the Policy calls for:

• Regular energy audits

• Improved accounting practices

• System-wide digitalization of operations

Shared Infrastructure and GIS Mapping to Cut Costs

To eliminate inefficiencies and duplication, NEP 2026 proposes:

• Shared distribution networks, allowing multiple service providers to use common infrastructure

• GIS-based asset mapping and consumer indexing

• Automation of distribution systems

These measures are expected to significantly reduce capital expenditure, enhance transparency, and improve service delivery.

Distribution System Operator (DSO): Enabling Future Energy Systems

Recognizing the rapid rise of decentralized energy systems, the Policy introduces the concept of a Distribution System Operator (DSO).

The DSO will:

• Facilitate integration of distributed renewable energy sources

• Manage energy storage systems

• Support emerging technologies such as Vehicle-to-Grid (V2G)

It will also enable the development of local energy markets, improving efficiency and consumer participation while ensuring grid stability.

Strengthening Grid Reliability and Urban Infrastructure

The Policy lays out specific measures to enhance reliability and quality of supply:

• Network redundancy at key voltage levels

• Transformer-level redundancy in cities with populations above 10 lakh by 2032

• Underground cabling in congested urban areas

These initiatives aim to reduce outages, improve resilience, and support growing urban energy demand.

Universal Access and Strategic Connectivity

Ensuring universal electricity access remains a core priority, with special emphasis on:

• Border and remote regions

• Strengthening last-mile connectivity

This aligns with the broader goal of inclusive development and national security considerations.

Industry Backs Reform Momentum

Participants at the roundtable widely welcomed NEP 2026, noting that it provides a forward-looking, reform-oriented framework to address long-standing structural challenges in the power sector.

They emphasized that:

• Distribution reforms are critical for the success of India's energy transition

• Financially viable DISCOMs are essential to sustain investments in generation and transmission

• Policy clarity will boost investor confidence and private sector participation

A Critical Decade for Power Sector Transformation

The discussions underscored that India is entering a decisive phase where power demand, renewable integration, and economic growth are converging.

NEP 2026 is expected to play a pivotal role in:

• Enabling large-scale renewable integration

• Improving service quality and consumer experience

• Driving digital transformation in power distribution

• Supporting India's transition to a low-carbon economy

As India advances toward its Viksit Bharat @ 2047 vision, sustained reforms in the distribution sector will be key to building a resilient, efficient, and future-ready power ecosystem.