Section 3 in The National Electricity Policy, 2005
3. National Electricity Plan.-3
.1 Assessment of demand is an important pre-requisite for planning capacity addition. Section 3(4) of the Act requires the Central Electricity Authority (CEA) to frame a National Electricity Plan once in five years and revise the same from time to time in accordance with the National Electricity Policy. Also, section 73(a) provides that formulation of short-term and perspective plans for development of the electricity system and co-ordinating the activities of various planning agencies for the optimal utilization of resources to subserve the interests of the national economy shall be one of the functions of the CEA. The plan prepared by CEA and approved by the Central Government can be used by prospective generating companies, transmission utilities and transmission/ distribution licensees as reference document.3.2Accordingly, the CEA shall prepare short-term and perspective plan. The National Electricity Plan would be for a short-term framework of five years while giving a 15-year perspective and would include:Short-term and long-term demand forecast for different regions;Suggested areas/locations for capacity additions in generation and transmission keeping in view the economics of generation and transmission, losses in the system, load centre requirements, grid stability, security of supply, quality of power including voltage profile, etc., and environmental considerations including rehabilitation and resettlement;Integration of such possible locations with transmission system anddevelopment of national grid including type of transmission systems and requirement of redundancies;Different technologies available for efficient generation, transmission and distribution; andFuel choices based on economy, energy security and environmental considerations.3.3While evolving the National Electricity Plan, CEA will consult all the stakeholders including State Governments and the State Governments would, at State level, undertake this exercise in co-ordination with stakeholders including distribution licensees and STUs. While conducting studies periodically to assess short-term and long-term demand, projections made by distribution utilities would be given due weightage. CEA will also interact with institutions and agencies having economic expertise, particularly in the field of demand forecasting. Projected growth rates for different sectors of the economy will also be taken into account in the exercise of demand forecasting.3.4The National Electricity Plan for the ongoing 10th Plan period and 11th Plan and perspective Plan for the 10th, 11th and 12th Plan periods would be prepared and notified after reviewing and revising the existing Power Plan prepared by CEA. This will be done within six months.
