India sets 2,000 kWh power use by 2030 in draft electricity policy

Tariff reform and cost competitiveness drive proposed overhaul

India has set a per capital electricity consumption target of 2,000 kilowatt per hour (kWh) by 2030 and over 4,000 kWh by 2047, signaling higher long-term power demand, based on a draft policy published by the Ministry of Power.

The draft, issued in 2026 and available for public consultation, proposes tariff and distribution reforms to address financial weaknesses in the power sector, according to a press release. 

It proposes automatic annual tariff revisions through suitable indices and greater recovery of fixed costs through demand charges to reduce cross-subsidisation.

The ministry noted high accumulated losses, debt and non–cost-reflective tariffs in distribution and set financial viability as a goal.

The draft is intended to replace the National Electricity Policy that came into effect in 2005.

It also aligns with India’s climate commitments, including reducing emissions intensity by 45% from 2005 levels by 2030 and achieving net-zero emissions by 2070.

The draft also proposed exemptions from cross-subsidy and surcharges for manufacturing, railways and metro railways to lower electricity costs and improve industrial competitiveness. 

It also proposed allowing regulators to exempt distribution licensees from universal service obligations for consumers with contracted loads of one megawatt and above, according to the ministry.