Unified National Energy Policy Framework (UNEPF)

Latest Context

The Indian National Science Academy (INSA), through its Centre for Science, Technology, Innovation and Policy (CSTIP), released a Policy Brief (May 2026) recommending a Unified National Energy Policy Framework (UNEPF). The proposed framework seeks to integrate India's fragmented energy policies and accelerate the country's transition towards Energy Self-Reliance by 2047 and Net-Zero Emissions by 2070.

Introduction

India's energy sector is undergoing a historic transformation as the country rapidly expands renewable energy, modernises its electricity infrastructure, and reduces dependence on imported fossil fuels.

Recognising these challenges, the Indian National Science Academy (INSA) has proposed a Unified National Energy Policy Framework, which views India's energy system as a single integrated ecosystem rather than separate sectors such as coal, petroleum, electricity, renewable energy, and nuclear power. The framework aims to strengthen energy security, improve grid reliability, promote clean energy technologies, and ensure an equitable and economically sustainable energy transition.

What is the Unified National Energy Policy Framework?

Meaning

The Unified National Energy Policy Framework (UNEPF) refers to a coordinated, integrated, and system-wide governance framework that harmonises policies across all segments of India's energy sector, including coal, oil, natural gas, renewable energy, electricity, green hydrogen, nuclear energy, and climate commitments.

Instead of treating different energy sources as competing markets, the framework considers the national power grid, energy supply chains, storage infrastructure, and energy consumers as interconnected components of a unified national energy ecosystem.

Need for a Unified National Energy Policy

Transition from Capacity Addition to System Integration

• India's renewable energy capacity has increased dramatically from nearly 40 GW in 2015 to approximately 260 GW by 2025. While this rapid expansion represents significant progress, managing such a large share of intermittent renewable energy requires sophisticated system-wide integration.

• Solar and wind energy must be effectively balanced with thermal power plants, Pumped Storage Hydropower (PSH), and Battery Energy Storage Systems (BESS) to maintain grid stability and prevent frequency fluctuations.

• Therefore, future energy policy must move beyond simply increasing installed capacity and focus on creating an integrated, resilient energy system.

Addressing Institutional Fragmentation

• India's energy governance is currently divided among multiple ministries, including the Ministry of Coal, Ministry of Power, Ministry of Petroleum and Natural Gas (MoPNG), Ministry of New and Renewable Energy (MNRE), and the Department of Atomic Energy (DAE).

• Each ministry operates independently with different priorities, timelines, and regulatory mechanisms. This fragmentation often results in overlapping policies, administrative delays, and inefficient utilisation of national resources.

• A unified framework would enable coordinated planning and treat coal, natural gas, biomass, nuclear energy, and renewable energy as complementary components of a diversified energy portfolio.

Balancing Supply and Demand

• India has launched ambitious programmes such as the National Green Hydrogen Mission and the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative for compressed biogas.

• However, infrastructure development, pipeline connectivity, storage facilities, and commercial demand have not expanded at the same pace as production capacity. This mismatch creates bottlenecks that reduce the effectiveness of these programmes.

• A unified policy would synchronise production with infrastructure development and market demand.

Eliminating Data Silos

Energy-related data remains scattered across multiple agencies using different formats and reporting systems.

The proposed National Electricity Data Centre (NEDC) under the National Electricity Data Sharing Framework, 2026 seeks to standardise electricity data, facilitate AI-based grid management, improve demand forecasting, and strengthen long-term energy planning.

Reducing Fiscal Burden and Import Dependence

• India imports more than 85% of its crude oil requirements, making the economy vulnerable to global price volatility and geopolitical disruptions.

• Simultaneously, energy subsidies account for approximately 2.3% of India's GDP, placing considerable pressure on public finances.

• A unified energy framework would better coordinate subsidy programmes, strengthen DISCOM reforms, integrate Carbon Capture, Utilisation and Storage (CCUS) technologies, and promote demand-side schemes such as PM Surya Ghar and PM-KUSUM.

Major Challenges in Implementing the Unified Framework

Institutional Fragmentation

Creating a unified governance mechanism may require establishing a central coordinating authority, such as a Department of Energy Resources.

However, such reforms could face resistance due to overlapping ministerial jurisdictions and bureaucratic interests, making institutional coordination a significant challenge.

Transmission Infrastructure Deficit

India's renewable energy projects typically require 12–18 months for commissioning, whereas interstate transmission infrastructure often takes 18–30 months to become operational.

This mismatch creates severe transmission congestion, resulting in renewable energy curtailment and underutilisation of clean energy assets.

Maintaining India's grid frequency within the narrow operational range of 49.90 Hz to 50.05 Hz becomes increasingly difficult as intermittent renewable generation rises.

Energy Storage Deficiency

The Central Electricity Authority (CEA) estimates that India will require approximately 60.63 GW of energy storage capacity by 2030, including 41.65 GW from Battery Energy Storage Systems (BESS).

Current operational storage capacity remains significantly below this requirement due to high investment costs and dependence on imported critical minerals.

Financial Stress of DISCOMs

State-owned Distribution Companies (DISCOMs) continue to suffer from persistent financial losses due to high Aggregate Technical and Commercial (AT&C) losses, inadequate tariff revisions, and operational inefficiencies.

Their weak financial position limits investment in smart grids, advanced metering infrastructure, flexible power procurement, and modern distribution systems.

Federal Challenges and Just Transition

India's transition towards clean energy must account for regional differences in economic development and employment patterns.

States that depend heavily on coal mining and thermal power generation may experience significant economic disruption during decarbonisation.

Designing region-specific transition strategies while respecting India's federal structure remains a major policy challenge.

Key Features of the Proposed INSA Framework

Adequacy

The framework seeks to ensure a reliable, diversified, and resilient energy supply by combining conventional energy sources with emerging clean technologies.

It emphasises modern infrastructure, digital grid management, and large-scale energy storage to strengthen long-term energy security.

Access

Universal access to reliable and affordable energy remains a central objective.

The framework proposes strengthening last-mile electricity delivery, improving service quality, and promoting decentralised renewable energy solutions in remote and underserved regions.

Affordability

The transition towards clean energy should remain economically viable for households, industries, and commercial establishments.

This requires innovative financing mechanisms, competitive markets, and consumer protection measures to ensure affordable energy prices.

Appropriate Sustainability

Instead of adopting a uniform national strategy, the framework advocates region-specific energy transition pathways that consider India's diverse social, economic, and environmental conditions.

Special emphasis is placed on workforce development, local community participation, and equitable transition strategies.

Strategic Enablers and Emerging Technologies

Circular Economy

The framework promotes circular economy principles by encouraging efficient resource utilisation, waste minimisation, recycling, and recovery of valuable materials throughout the energy value chain.

Carbon Capture, Utilisation and Storage (CCUS)

CCUS is identified as a critical technology for reducing emissions from hard-to-abate sectors such as steel, cement, chemicals, and thermal power generation.

It complements renewable energy rather than replacing conventional energy sources entirely.

Green Hydrogen

The policy recommends accelerating commercial deployment of Green Hydrogen, recognising its importance for decarbonising heavy industries, transportation, fertilisers, and energy storage.

Advanced Bio-resources

Greater emphasis is placed on bioenergy, biomass, compressed biogas, and waste-to-energy technologies to diversify India's clean energy mix.

Integrated Resource Optimisation

The framework views coal, natural gas, renewables, biomass, waste-to-energy, and nuclear power as interconnected national assets that should function together rather than compete independently.

Significance of the Unified Energy Framework

Strengthening Energy Security

A diversified and integrated energy system reduces dependence on imported fossil fuels and improves resilience against global supply disruptions.

Supporting Energy Self-Reliance

The framework directly contributes to India's vision of achieving Energy Independence by 2047 by promoting domestic energy production, clean technologies, and indigenous manufacturing.

Accelerating Net-Zero Transition

Integrated planning facilitates large-scale deployment of renewable energy, Green Hydrogen, CCUS, and storage technologies, supporting India's commitment to achieve Net-Zero emissions by 2070.

Enhancing Grid Stability

Coordinated investment in transmission infrastructure, storage systems, and digital grid technologies improves grid reliability despite increasing renewable energy penetration.

Improving Economic Efficiency

Better coordination among ministries, harmonised regulations, and integrated investment planning reduce duplication, optimise public expenditure, and improve market efficiency.

Government Initiatives Supporting Energy Transition

India has already launched several initiatives that complement the proposed framework, including the National Green Hydrogen Mission, PM Surya Ghar: Muft Bijli Yojana, PM-KUSUM, SATAT Initiative, National Electricity Data Sharing Framework, National Smart Grid Mission, Battery Energy Storage System (BESS) Programme, Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cells, National Bioenergy Programme, and the National Solar Mission.

Way Forward

Strengthen Institutional Coordination

India should establish an integrated governance mechanism capable of coordinating policies across all energy ministries while preserving sector-specific expertise.

Expand Transmission Infrastructure

Transmission planning should be synchronised with renewable energy development to eliminate grid congestion and renewable energy curtailment.

Accelerate Energy Storage Deployment

Greater investment in Battery Energy Storage Systems, Pumped Storage Hydropower, and indigenous battery manufacturing should become a national priority.

Reform DISCOMs

Financial restructuring, smart metering, tariff rationalisation, reduction of AT&C losses, and improved operational efficiency are essential for enabling large-scale clean energy integration.

Promote Region-Specific Just Transition

Targeted financial assistance, workforce reskilling, social protection measures, and alternative employment opportunities should support coal-dependent regions during the energy transition.

Conclusion

The Unified National Energy Policy Framework represents a significant shift from fragmented energy governance towards an integrated, resilient, and future-ready energy ecosystem. By breaking institutional silos, strengthening grid infrastructure, expanding energy storage, promoting Green Hydrogen, Circular Economy, and Carbon Capture, Utilisation and Storage (CCUS) technologies, India can simultaneously achieve energy security, economic competitiveness, and climate sustainability.

A coordinated and holistic energy policy will not only support India's ambition of Energy Self-Reliance by 2047 and Net-Zero emissions by 2070, but also create a reliable, affordable, and inclusive energy system capable of powering the country's long-term economic growth and sustainable development