Energy Infrastructure: Grid Modernization & DISCOM Reforms

1. DISCOM STRUCTURAL CRISIS & REFORMS

Cue Words	Notes
The DISCOM Financial Crisis	**Structural Problem**: Power distribution companies face high Aggregate Technical & Commercial (AT&C) losses, a persistent gap between Average Cost of Supply (ACS) and Average Revenue Realized (ARR), and delayed subsidy repayments by state governments. **AT&C Loss Trend**: Losses have been brought down to **15.4%**, still above the RDSS target band of **12-15%**, under a prepaid-metering push.
RDSS (Revamped Distribution Sector Scheme)	A ₹3 Lakh Crore performance-linked scheme with two levers: Prepaid Smart Metering (automates billing, eliminates collection defaults; 4.05 Crore+ meters installed) and Feeder Segregation (separates agricultural feeders from domestic supply, enabling solarization under PM-KUSUM).
UDAY Scheme (2015) and its Shortfall	Allowed states to take over 75% of DISCOM debt via state bonds, but did not mandate smart metering or address electricity theft — explaining why RDSS had to follow it up with metering-first reforms.

> **Summary**: DISCOM financial distress stems from the ACS-ARR gap and AT&C losses; UDAY's 2015 debt-relief route failed without metering/theft fixes, which RDSS's ₹3 Lakh Crore prepaid-metering and feeder-segregation push now targets directly.

Electricity (Amendment) Bill, 2025 — Proposed Power-Sector Reforms

2026

Cue Words	Notes
Financial Viability & Economic Competitiveness	**Financial viability**: Mandates **cost-reflective tariffs**; empowers **Electricity Regulatory Commissions** to determine tariffs **suo motu**, effective **1st April each year**. **Economic competitiveness**: Aims to **rationalise tariffs** and **reduce cross-subsidies**.
Energy Transition & Ease of Doing Business	**Energy transition**: Empowers **CERC** to introduce **market-based instruments** and enforceable **non-fossil energy obligations** (aligned with the Energy Conservation Act), targeting **500 GW non-fossil capacity by 2030**. **Ease of doing business**: Provides for **uniform national standards of service**.

> **Summary**: The Draft Electricity (Amendment) Bill, 2025 targets DISCOM financial viability directly (suo motu, cost-reflective tariff-setting powers to ERCs), while also embedding enforceable non-fossil obligations to lock in the 500 GW 2030 target discussed in Section 2.

Economic Survey 2025-26 — Climate & Energy Transition Data

2026

Cue Words	Notes
Adaptation Spending & Non-Fossil Capacity Milestone	India's adaptation/resilience-related domestic spending surged from 3.7% of GDP (FY16) to 5.6% of GDP (FY22). Share of installed power capacity from non-fossil sources stood at 51.93% as of end-December 2025 — crossing the halfway mark toward India's 500 GW non-fossil target.
FY26 Transition Momentum & the Survey's Framing	**FY26 saw accelerated clean-energy transitions** via renewable capacity addition and diversification into **green hydrogen and nuclear** sectors. The Economic Survey frames India's approach as a **"development-centred, whole-of-economy climate strategy"** — integrating **adaptation, mitigation, and behavioural change** within the development model itself.

> **Summary**: The Economic Survey 2025-26's data (adaptation spend up from 3.7% to 5.6% of GDP, non-fossil share past the halfway mark at 51.93%) corroborates the 2026 Update figures below (283-297 GW, ~53%) while adding the FY26 diversification story — green hydrogen and nuclear alongside solar/wind — under an explicit "development-centred" climate-strategy framing.

2. RENEWABLE ENERGY INTEGRATION & STORAGE

Cue Words	Notes
Grid Intermittency and the Duck Curve	Mass wind/solar injection causes variable power levels, producing grid frequency and voltage drops — the "duck curve" mismatch between daytime solar surplus and evening peak demand.
Storage Interventions	**BESS (Battery Energy Storage Systems)**: Grid-scale batteries backed by Viability Gap Funding (VGF), targeting 4,000 MWh capacity to stabilise evening peak loads. **Pumped Hydro Storage (PHS)**: Closed-loop hydroelectric systems storing excess daytime solar power for peak-hour release.
Green Energy Corridor (GEC) & Installed Capacity	GEC is a dedicated interstate transmission network evacuating bulk renewable power from RE-rich states to industrial hubs. **2026 Update**: India's non-fossil installed capacity crossed **283 GW (~53% of total capacity)** as of March 2026, and touched **~297 GW** by June 2026 — hitting the 50% non-fossil target roughly five years ahead of the 2030 NDC commitment. FY2025-26 alone added a record **55.3 GW** of non-fossil capacity (solar ~162 GW, wind ~57 GW). ## SOLAR ENERGY & PHOTOVOLTAICS Building-Integrated Photovoltaics (BIPV) integrate solar elements directly into building façades, roofs, windows, railings: dual-purpose electricity generation and structural element. BIPV installations: CtrlS Datacenters Navi Mumbai, Renewable Energy Museum Kolkata solar dome, Jindal Steel & Power Odisha, Railway stations Vijayawada and Sahibabad. PM Surya Ghar Muft Bijli Yojana (2024) includes BIPV for limited rooftop areas. India targets 300 GW solar by 2030; cannot be met by rooftop and ground-mounted systems alone. Perovskite solar cells use metal-halide perovskites (organic ions + metals + halogens) as main absorbing/active layer; thin layer absorbs light, excites electrons to generate power. Silicon photovoltaics invented 1954 by Bell Labs; currently 18–21% reported efficiency, 15–18% in-field; ~80% global supply from China; India 6 GW and rising. Higher efficiency tech like gallium arsenide thin-film demonstrates 47% efficiency. Lower silicon efficiency requires larger land area; land scarcity worsens renewable energy challenge. Green hydrogen produced via electrolysis using renewable electricity; energy-intensive with storage and transport challenges due to low density and leakage. Green hydrogen alternatives: conversion to green ammonia (NH3) or green methanol (CH3OH) for easier transport; reconversion requires additional energy. Artificial photosynthesis (APS) mimics natural photosynthesis using water, sunlight, CO2/N2 to produce fuels. Renewable Fuels of Non-Biological Origin (RFNBO) pursued in Europe; India must invest. PM Surya Ghar Yojana: only 13.1% of targeted 1 crore rooftop solar installations achieved; provides capital upfront via loans. PMSGY subsidy disbursements crossed $1.05 billion benefiting 16+ lakh households; 4.9 GW of installations account for 44.5% of India's total residential rooftop capacity (2025). PMSGY incentivizes only "DCR-compliant modules" (entirely manufactured in India); costlier by ₹12/watt vs. imported variants. Panchet Dam (1959) last of four multipurpose dams in first DVC phase; project will install floating solar panels on reservoir and ground-mounted PV system. India's Panchamrit goals (COP26, 2021): 500 GW non-fossil capacity by 2030; 50% energy from renewables by 2030; 1 billion tonne emission reduction 2021–2030; 45% carbon intensity reduction by 2030 (vs. 2005); net-zero by 2070. Renewable energy projects often exempted from mandatory social/environmental impact assessments; 48% of renewable conflicts on common lands historically used by indigenous communities, Dalits, Adivasis. India added 24.5 GW solar in 2024, becoming third-largest contributor globally after China and US. India's cumulative green, social, sustainability-linked (GSS+) debt issuance reached $55.9 billion by Dec 2024 (186% increase since 2021); green bonds account for 83%. Green bond investment crossed $45 billion in 2025; sustainable finance targets $100 billion by 2030; private sector contributed 84% of total green bond issuance. Successful examples: Solar Park Scheme auctions, sovereign green bonds, SEBI-regulated social bonds channeling funds into climate action, education, healthcare. ## BATTERY ENERGY STORAGE SYSTEMS (BESS) BESS offers grid stability and enables better renewable integration. BESS supports peak load management, demand-supply balance, decentralized energy systems; enables microgrids for clean, resilient energy access in remote areas. Battery costs dropped 90% in 15 years; regulatory, financial, technical barriers persist. India targets 500 GW non-conventional capacity by 2030. Govt plans 47 GW BESS installation by 2032 to support renewable deployment and grid integration. Delhi BSES pilot BESS project by BSES Rajdhani, IndiGrid, GEAPP aims to create technical playbook and regulatory reforms. ## HYDROPOWER Arunachal Pradesh Cabinet declared 2025–2035 'Decade of Hydropower' targeting 58,000 MW electricity generation capacity. Arunachal Pradesh receives 12% free power from each HEP + 1% for local area development fund; projects target 19 GW generation. Cabinet approved escrow account creation for effective free power revenue utilization for strategic financial decisions and sustainable growth. Siang Upper Multipurpose Project (SUMP) declared national project in 2008 due to national significance; counter to China's proposed 60,000 MW project on Yarlung Tsangpo River Tibet. ## GEOTHERMAL ENERGY India's new national geothermal policy seeks to build on interest from US, Iceland, Norway research firms for commercial viability testing. Companies from Iceland and Norway exploring R&D and pilot projects in Gulf of Cambay, Arunachal Pradesh, Uttarakhand. Geothermal energy taps earth's heat from hot springs or underground reservoirs using steam to spin turbines for electricity generation; renewable, used for heating, cooling, greenhouses, aquaculture. Geological Survey of India mapped 381 hot springs with surface temperatures 35–89°C; MNRE policy seeks to support exploration and development. India has estimated 10.6 GW geothermal potential; could increase with further exploration. Key geothermal sites: Himalayan Geothermal Province (Uttarakhand, Himachal Pradesh, Ladakh, J&K, Arunachal Pradesh), Cambay Graben Gujarat, Andaman and Nicobar Islands. Globally <17 GW geothermal capacity harnessed; led by US, Indonesia, Philippines; Iceland and Norway pioneered innovative technologies. IEA: China, US, India have largest market potential for next-generation geothermal; India's geothermal market potential reach 4.2 GW by 2035 and ~100 GW by 2045. ## WIND ENERGY India targets 500 GW non-fossil capacity by 2030; wind expected to contribute one-fifth of goal. Only 4% of India's 1.1 TW wind potential tapped. MNRE revised Revised List of Models & Manufacturers (RLMM) guidelines mandating local sourcing of critical components: blades, gearboxes, generators, towers. India has 20+ GW turbine manufacturing capacity; only 20% utilized; blade capacity 28 GW, generator capacity 17 GW, both underutilized. Wind turbines are grid-connected, data-exchanging systems; single breach could lead to national grid failure. H1 2025: India added 3.5 GW wind capacity (82% YoY growth), total 51.3 GW. India's gross wind potential at 150m height: 1163.9 GW (NIWE estimate). Thar Desert wind farms show highest bird mortality globally including Great Indian Bustard; mortality 1.24 birds/turbine/month vs. earlier 0.47/year (Kutch, Davangere). Bird mortality factors: bird density, infrastructure density, configuration, geography, season. Thar Desert part of Central Asian Flyway major migratory route; raptors most affected; power line collisions contributed to mortality. Global offshore wind capacity ~83 GW; India targets 30 GW offshore wind by 2030. National Offshore Wind Energy Policy mandates EIAs (unlike other renewables); Gulf of Khambhat rapid EIA documented 5 marine mammals (dolphins, sharks) and 1 reptile. 6 GW new wind capacity expected (highest-ever annual addition); India moving toward 500 GW renewable goal with wind contributing 100+ GW. Tamil Nadu, Karnataka, Andhra Pradesh contribute almost half of India's 54 GW total wind capacity. India's wind industry has 70% local content; Atmanirbhar Wind Mission goal increase to 85% by 2030. GST on wind equipment reduced 12% to 5%, cutting turbine cost. Approved List of Models & Manufacturers (ALMM) framework allows India to meet 10% global wind demand by 2030 and 20% by 2040, emerging as global turbine/component manufacturing hub. Govt launched Viability Gap Funding scheme for offshore wind targeting 1 GW first phase: 500 MW each off Gujarat and Tamil Nadu. ## NUCLEAR ENERGY Current nuclear power capacity: 8 GW operational, 5 GW in construction; target 100 GW by 2047. Modeled scenarios: 168–328 GW nuclear capacity under different expansion rates. Small Modular Reactors (SMRs) could generate 13–28% of electricity by 2050. Cost reduction 10–21% if nuclear merged with renewable expansion. India electricity demand 2025–2050: 1,811–7,250.7 TWh per year; annual growth rate 5.3%. Using HDI-FEC correlation: India needs ~24,000 TWh annually to reach HDI 0.9; 60% used as electricity, rest for hydrogen production in electrolysers. India's three-phase nuclear programme envisioned by Dr Homi J Bhabha and Dr Vikram Sarabhai focusing on energy security through optimal fuel use. Stage 1: Pressurised Heavy Water Reactors with natural uranium fuel producing Pu-239; heavy water as coolant/moderator; supplemented by imported Light Water Reactors (LWRs). Stage 2: Fast Breeder Reactors (Kalpakkam) using plutonium-based fuel breeding U-233 from thorium; fuel reprocessing essential for plutonium and fertile thorium utilization. Stage 3: Based on Thorium-U-233 cycle using U-233 in advanced thermal/fast reactors like Advanced Heavy Water Reactor; Molten Salt Reactors explored as alternative for long-term thorium energy security. Bihar first state to get atomic plant under Nuclear Energy Mission; concurrent 1,000 MW battery storage capacity project approved to enhance grid stability and renewable integration. COP28 'Declaration to Triple Nuclear Energy'; IAEA–World Bank collaboration to support nuclear in developing nations. Rail Vikas Nigam Ltd (RVNL) in talks with Russia's Rosatom for SMRs to fuel four mega rail projects including Rishikesh-Karnaprayag line. SMRs are advanced nuclear reactors with capacity up to 300 MW requiring less space; Budget 2025–26 allocated Rs 20,000 crore for SMR R&D. Nuclear Energy Mission targets 5 indigenously designed/operational SMRs by 2033; India aims 100 GW nuclear capacity by 2047 and net-zero by 2070. For first time, India's nuclear establishment involved private players in key nuclear plant process previously in-house. Mumbai-based TEMA India entrusted with testing equipment for upgrading depleted heavy water crucial for PHWRs (earlier BARC sole handler). TEMA India designed and built facility under technology transfer from BARC and NPCIL purchase order. TEMA India dispatched first tested distillation column sections for Unit 8 Rawathbata Nuclear Power Plant (RAPP-8) Rajasthan; scheduled to go critical soon. Heavy water (D₂O) is water with deuterium isotope; used as coolant/moderator for slowing neutrons essential for sustaining nuclear fission. D₂O must be 99.9% pure for efficient functioning; contamination with light water requires distillation process to upgrade back to 99.9%. India has 24 operational nuclear reactors with 8,780 MW installed capacity. Immediate target: 22.4 GW installed nuclear capacity by 2032. ## SOLAR INFRASTRUCTURE DEVELOPMENTS Varanasi became first city in India to have portable solar panels between railway tracks. Banaras Locomotive Works (BLW) commissioned indigenously-designed portable solar panel installation. Indian Railways target Net Zero Carbon Emission Railway by 2030. Over 98% broad gauge network electrified reducing diesel dependence. Renewable integration: 553 MW solar, 103 MW wind, 100 MW hybrid capacity totalling 756 MW commissioned. Bureau of Energy Efficiency "Shunya" net-zero label recognizes innovations including hydrogen-powered train as part of "Hydrogen for Heritage" initiative deploying 35 units. Parallel measures: shift freight road-to-rail to raise modal share to 45% by 2030. Indian Railway Finance Corporation (IRFC) mobilized climate-aligned capital starting with $500 million green bond issuance 2017 for electric locomotive refinancing. Priority: match electrification with genuinely decarbonised electricity since coal-heavy grid dilutes gains. If net-zero target achieved by 2030, Indian Railways could prevent 60+ million tonnes annual CO2 emissions equivalent to 13 million cars off road.

> **Summary**: Renewable integration's core challenge — the duck-curve mismatch — is being addressed via BESS/PHS storage and GEC evacuation infrastructure, against a backdrop where India has already exceeded its 2030 non-fossil NDC target years early.

3. ENERGY STRATEGY & DIPLOMACY

Cue Words	Notes
One Sun, One World, One Grid (OSOWOG)	A transnational solar grid (co-founded with France) connecting regions across timezones to share solar power, addressing solar's fundamental day-night geographic limitation.
Strategic Petroleum Reserves (SPR)	Phase I: 5.33 MMT capacity at Visakhapatnam, Mangaluru, and Padur (ISPRL-managed). Phase II expands via commercial-cum-strategic reserves, aiming for ~90 days of net-import cover.
Coal Gasification	National target to gasify 100 Million Tonnes of coal by 2030, substituting fuel imports with clean coal syngas.

> **Summary**: India's energy-security strategy layers transnational grid diplomacy (OSOWOG), physical crude buffers (SPR), and domestic feedstock substitution (coal gasification) to reduce import dependence and price-shock vulnerability.

4. NUCLEAR EXPANSION, EMERGING TECH & CRITICAL MINERALS

Cue Words	Notes
Nuclear Energy Mission & SMRs	₹20,000 Crore allocated (Budget 2025-26) targeting 5 indigenous Small Modular Reactors (SMRs, ≤300 MW) by 2033, en route to 100 GW nuclear by 2047. India's 3-stage programme (Bhabha/Sarabhai): PHWRs (Stage 1) → Fast Breeder Reactors breeding U-233 from thorium (Stage 2) → Thorium-U233 cycle/AHWR (Stage 3). First-time private sector entry: TEMA India testing heavy-water upgrading equipment (earlier BARC-only), under BARC tech transfer/NPCIL order.
Geothermal & Critical Minerals	India's geothermal potential ~10.6 GW (381 hot springs mapped by GSI); IEA sees market potential reaching 4.2 GW by 2035. New hydrogen-plasma smelting process cuts nickel-refining CO2 emissions by 84%, works on India's lower-grade Odisha laterite ores — reducing import dependence on high-grade nickel ore. Copper QCO (BIS certification mandate) triggered a 34% YoY fall in cathode imports (FY25) while domestic output rose 12.6%.
Electric Mobility & FAME Evolution	SPMEPCI: cuts EV import duty to 15% (from 70–100%) for firms investing ₹4,150 Cr, with 25%/50% Domestic Value Addition mandates over 3/5 years — zero applicants at first deadline. FAME evolution: FAME-I (2015, tech & charging infra) → FAME-II (2019, buses/3W/2W subsidy) → FAME-III (2024-25, heavy trucks + charging stations). EVs were 7.8% of FY25 sales (3W: 57%, 2W: 6.1%, PVs: 2.6%) — India's EV penetration (7.6%) trails the global average (17%). China's WTO complaint against India's ACC-battery, Auto (AAT), and EV PLI schemes alleges prohibited import-substitution subsidies under SCM Article 3.1(b)/GATT Article III.4/TRIMs Article 2.1.

> **Summary**: Energy strategy is broadening beyond grid/storage basics into nuclear scale-up (SMRs, private-sector entry), cleaner critical-mineral processing, and electric mobility — with the EV PLI push now facing a WTO subsidy challenge from China.

Recent Energy Developments (2025-26)

Cue Words	Notes
Natural Hydrogen Exploration	Natural hydrogen occurs as free gas in geology formed through: serpentinisation (water + iron-containing rocks interaction), radiolysis of water by radioactive rocks, organic matter at depth History: 1987 Bourakébougou (Mali) borehole flame erupted during water-drilling, 2012 Chapman Petroleum confirmed 98% hydrogen gas; geological ranges (Pyrenees, Alps, Himalayas) recognized for hydrogen generation; helium co-existence suggests radiolysis role; coal-mine hydrogen suggests organic-matter origin Current reserves poorly known (limited exploration); India's hydrogen potential largely untapped but promising: ultramafic/mafic/basaltic assemblages, Andaman/Himalayan ophiolite complexes, Dharwar/Singhbhum greenstone sequences, sedimentary basins (Vindhyan, Cuddapah, Gondwana, Chhattisgarh), fractured basement rocks, hot springs Natural hydrogen exploration faces technical, logistical, economic, safety challenges; inspired by U.S. ARPA-E projects, India can explore induced hydrogen production (flowing water into rock) and simultaneous hydrogen production + carbon sequestration (injecting CO2-rich water into iron-bearing rocks) Globally: hundreds seeps found Australia, USA, Spain, France, Albania, Colombia, South Korea, Canada; France (Lorraine May 2023, Moselle March 2025) totaling 92 million tonnes worth $92 billion (~half current global production) Best estimate: tens of trillions tonnes exist; if 2% exploitable, could meet hydrogen demand 200 years; hydrogen currently manufactured mostly from natural gas via energy-intensive, polluting process
Sodium-Ion (Na-ion) Battery Technology	JNCASR (Bengaluru) team developed super-fast charging Na-ion battery charging 80% in 6 minutes, lasting 3,000+ cycles nearing Li-ion battery performance Based on NASICON-type chemistry enhanced via novel material engineering/nanotechnology overcoming traditional Na-ion limitations (slow charging, short lifespan) China dominates global lithium-ion battery supply chain/refining capacity; advancing in sodium-ion batteries ('Nastra' Na-ion by end 2025 enabling EVs 500 km range per charge) Lithium-ion batteries use scarce/costly elements (cobalt, nickel, copper, lithium); sodium abundant, extractable from seawater, environmentally friendly vs. lithium requiring mining in Lithium Triangle (Argentina, Bolivia, Chile) Sodium-ion batteries safer (transportable at zero volts avoiding lithium fire risk), use aluminum (cheaper) vs. copper, support higher operating temperature range; challenges: nascent technology, limited manufacturers, higher costs, lower energy density, limited shape flexibility (not prismatic/cylindrical) Cycle life lower compared to LiFePO4 batteries (8,000+ cycles); JNCASR breakthrough involved nanoparticle downsizing, carbon coating, aluminum doping in anode enabling faster/safer ion movement; improvements allow Na-ion batteries power EVs, solar grids, drones, rural homes with rapid charging/minimal fire/degradation risk
Small Modular Reactors (SMRs) & International Development	SMRs provide flexible sizing (1-300+ MW), factory-built cost efficiency, passive safety, 24/7 stable baseload power; global SMR investment: $15.4 billion Advantages: smaller reactor cores with reduced nuclear material, passive safety (natural convection, automated shutdown), accident-tolerant fuels maintaining integrity at higher temperatures, longer mitigation times (hours/days), smaller offsite emergency zones, no costly transmission infrastructure requirement International Collaboration: Nuclear Harmonization & Standardization Initiative (NHSI) promotes regulatory harmonisation; IAEA SMR Regulators' Forum shares global best practices; Safeguards by Design Programme integrates international safeguards into early design; emphasis developing new regulatory frameworks for SMR transportation/waste management
Kazakhstan's Nuclear Plant & VVER Reactors	Rosatom leading international consortium building Kazakhstan's first nuclear power plant near Ulken; project approved by referendum Plant aims 2.4 gigawatt capacity by 2035; China, France, South Korea involved VVER-1200 reactor: Generation III+ Russian-designed Pressurized Water Reactor (PWR), ~1,200 MW electric power, 20% higher output vs. earlier VVER-1000, enhanced safety/fuel efficiency/security; used in Russia, China, Bangladesh, Belarus
India's Nuclear Sector & Targets	Atomic Energy Act 1962: debate since 2007 on private sector entry based on Dr. Raja Ramanna Committee (1997) recommendations Nuclear share: just over 3% total power; installed capacity (2023): 8.8 GW across 24 reactors; target: 22.48 GW by 2031-32, 100 GW by 2047 India's renewable energy capacity crossed 200 GW milestone (2024), marking 13.5% year-on-year increase: 92 GW solar, 52 GW hydro, 48 GW wind, 11 GW bio-energy India currently operates 24 nuclear reactors generating 8,180 MW electricity; most reactors use PHWR design, largely run by NPCIL
India-U.S. Civil Nuclear Agreement & 123 Agreement	After Pokhran II (1998), India declared No-First-Use policy, Non-Use against Non-Nuclear Weapon States, Minimum Nuclear Deterrence; established Nuclear Command Authority (NCA) and Strategic Forces Command (SFC) India-U.S. Civil Nuclear Agreement (123 Agreement, 2005): bilateral accord on civil nuclear cooperation under U.S. Atomic Energy Act Section 123, acknowledged India's non-proliferation record 2008 NSG waiver granted India civil nuclear trade without NPT signature; to meet NSG waiver conditions, India separated civilian/military nuclear programmes; signed IAEA agreement placing civilian reactors under safeguards allowing IAEA inspection verifying peaceful use
Pressurized Heavy Water Reactors (PHWRs) in Gujarat	AERB granted NPCIL 5-year licence operating Kakrapar Units 3 & 4, each 700 MWe PHWRs in Gujarat; indigenously developed reactors forming India's self-reliance in nuclear technology KAPS-3 cleared full-power operation (2023), KAPS-4 (2024); first 700 MWe PHWRs in India; NPCIL plans building 10 such reactors in fleet mode
Green Hydrogen Standards & Certification	Green hydrogen produced by splitting water via electrolysis using renewable energy; clean-burning molecule decarbonizing iron & steel, chemicals, transportation sectors Enables excess renewable energy utilization that cannot be stored/used by grid 2023: MNRE introduced green hydrogen standard capping emissions at 2 kg CO2 per kg hydrogen; certification scheme applies only to green hydrogen from electrolysis/biomass conversion

5. TRANSMISSION NETWORK MILESTONE & DRAFT NATIONAL ELECTRICITY POLICY 2026

2026

Cue Words	Notes
5 Lakh Circuit Kilometre Transmission Milestone	India's national power transmission network (220 kV and above) crossed 5 Lakh circuit kilometres (ckm) of transmission lines, with 1,407 GVA of transformation capacity. Milestone achieved on 14 January 2026 with commissioning of a 628 ckm, 765 kV transmission line from Bhadla II to Sikar II, evacuating renewable energy from the Rajasthan Renewable Energy Zone. Since April 2014, the transmission network has grown 71.6% (addition of 2.09 Lakh ckm), with transformation capacity up by 876 GVA.
Draft National Electricity Policy (NEP), 2026	Ministry of Power released the Draft National Electricity Policy (NEP), 2026 for public consultation, intended to replace the existing National Electricity Policy notified in February 2005. Since 2005: installed generation capacity has grown fourfold, universal electrification was achieved by March 2021, the unified national grid became operational in December 2013, and per-capita electricity consumption reached 1,460 kWh in 2024-25.

> **Summary**: The 5-lakh-ckm transmission milestone (evacuation-side infrastructure) and the draft NEP 2026 (policy-side overhaul of the 2005 framework) together signal a grid built out to match two decades of fourfold generation growth, now needing an updated policy architecture.

UPSC Mains PYQs

• DISCOM Reforms (2021): "The fiscal instability of power distribution companies (DISCOMs) remains the weakest link in India's energy value chain." Critically analyse the structural challenges faced by DISCOMs and evaluate the effectiveness of RDSS and UDAY in driving commercial efficiency. (15 Marks, 250 Words)
• Renewable Integration: Discuss the challenges of grid integration of variable renewable energy in India and evaluate the role of battery storage and pumped hydro in addressing them. (15 Marks, 250 Words)
• Energy Security: Examine the significance of Strategic Petroleum Reserves and coal gasification in strengthening India's energy security. (10 Marks, 150 Words)
• OSOWOG: What is the "One Sun, One World, One Grid" initiative? Discuss its potential in advancing global renewable energy cooperation. (10 Marks, 150 Words)
• Nuclear & SMRs: Discuss the significance of Small Modular Reactors in India's Nuclear Energy Mission and the role of private sector participation in achieving the 2047 target. (10 Marks, 150 Words)
• EV Policy & Trade: Examine India's EV manufacturing and PLI incentive framework, and discuss the WTO subsidy concerns raised against it. (15 Marks, 250 Words)

• India's three-stage nuclear programme: Stage 1 uses Pressurised Heavy Water Reactors with natural uranium and heavy water moderator
• Stage 2 of nuclear programme focuses on Fast Breeder Reactors using plutonium-based fuels, converts thorium to uranium-233
• Stage 3 of nuclear programme utilizes Thorium-U233 cycle with Advanced Heavy Water Reactors, aims for long-term energy security
• DVC statutory body set up in 1948 manages Damodar Valley Project India's first multipurpose valley development
• DVC led by 7-member board with chairman, 4 DVC members, one representative each from Centre, WB, Jharkhand
• Parliament passed the SHANTI Act 2025 (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) to incentivise private (Indian and foreign) participation in nuclear power production, replacing the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage (CLND) Act, 2010.
• The SHANTI Act creates a Parliament-answerable atomic energy regulatory structure, ends NPCIL's monopoly over operating nuclear plants, confers statutory status on the Atomic Energy Regulatory Board (AERB), and revises the civil liability framework.
• Operator liability for a nuclear incident under SHANTI Act is capped on a graded scale: Rs 3,000 crore for plants over 3,600 MW, Rs 1,500 crore for 1,500-3,600 MW, Rs 750 crore for 750-1,500 MW, Rs 300 crore for 150-750 MW, and Rs 100 crore for under 150 MW/fuel cycle facilities/transport.
• Under SHANTI Act, the Centre is liable for damage beyond the operator's cap and may assume full liability for a non-government installation in public interest; operator recourse against suppliers is now allowed only via written contracts or where damage was caused with intent, removing the CLND Act's Section 17(b) recourse clause for faulty equipment.
• Under SHANTI Act, the maximum penalty for even a "severe breach" is capped at Rs 1 crore, sensitive fuel cycle activities remain under state control, and private participation is allowed in plant delivery and parts of the supply chain.
• Nuclear power currently accounts for about 1.5% of installed capacity and around 3% of electricity generation; India plans to scale nuclear capacity from 8.8 GW to 100 GW by 2047, with State-owned utilities adding 54 GW and the remainder from the private sector.
• A Rs 20,000 crore mission targets development of SMRs and customised 220 MW pressurised heavy water reactors, aiming for five indigenous SMRs by 2033; SMRs require enriched uranium-235 and do not significantly advance thorium utilisation.
• Under the earlier CLNDA 2010, operator liability was capped at Rs 1,500 crore (govt liable for an additional Rs 2,100-2,300 crore); Section 17(b) allowed recourse against suppliers and Section 46 exposed suppliers to unlimited civil/criminal liability, stalling projects like Jaitapur (France's EDF) and Kovvada (US/Japan); only Kudankulam (Russia) proceeded as it predated CLNDA.
• The SHANTI Act aligns India's nuclear liability framework closer to the Vienna Convention on Civil Liability for Nuclear Damage and the Convention on Supplementary Compensation for Nuclear Damage.