Energy conservation:

NEP envisages a voluntary approach initially for promoting energy conservation along with emphasis on labelling of appliances. Gradually as awareness increases, a more regulatory approach for setting standards would be followed. The agricultural pump sets, motors and drive systems and lighting technology have been recognized as key areas for higher energy effectiveness. NEP aims at promoting Energy Conservation Companies for effective implementation of energy conservation measures.

Non-conventional sources of energy:

The policy finds full development of hydro-potential. Exploitation of non-conventional energy sources like as small hydro, solar, bio-mass and wind for additional power generation capacity is also envisaged.  Development of National Grid is a significant feature of the Policy. The policy emphasizes the requirement to decrease the capital cost of the projects based on such sources of energy and undertaking promotional measures for the development of these technologies. In accordance along with the provisions of the Act, SERCs have been needed to specify a minimum percentage of power to be purchased through distribution licensees from such sources at the previously. Such purchase is envisaged by competitive bidding process allowing an appropriate price differential as compared to conventional sources.