The objective of the Integrated Energy Policy is to reliably meet the demand for energy services of all sectors including the lifeline energy needs of vulnerable households in all parts of the country with safe, clean and convenient energy at the least-cost. It lays out the strategy for meeting India’s energy needs for the next 25 years.
Salient features of the Policy:
1. Establish independent regulation.
2. Tax structure and regulatory philosophy applied in each energy sector should be consistent with overall energy policy.
3. Energy pricing: should encourage users to conserve energy and switch to preferred sources. Domestic petroleum prices should be adjusted to trade-parity prices.
4. Subsidies must be transparent and targeted.
5. PSUs operating in the energy sector must operate with autonomy and accountability.
6. India will have to pursue all available fuel and energy options both domestically and abroad.
7. Energy markets should be competitive wherever possible.
8. Promote energy-efficiency by enforcing energy standards effectively.
9. Encourage energy research
10. Renewable energy: Fuel wood plantations, bio-gas plants, wood gasifier based power plants, bio-diesel and ethanol should be promoted.
11. Ensure energy security by
- lowering the requirement of energy,
- substituting imported fuels with alternatives,
- expanding the domestic energy resource base,
- maintaining reserve equivalent to 90 days of oil imports,
- building strategic stockpile of nuclear fuel to counter the risk of disruption of international fuel supply,
- acquiring energy assets abroad and setting up energy using industries such as fertilizer plants in energy rich countries.
12. Recommended initiatives would have effect on reducing the green house gas intensity of the economy by as much as by one third.