Why India is prioritising small nuclear reactors

Nuclear Power

As India aims to diversify its energy sources, the Finance Minister Nirmala Sitharaman has put nuclear energy in focus in the Union budget 2024-25, presented on July 23. She listed it as one of the nine priority areas for the government.

The minister said nuclear energy is expected to form a significant part of the country’s energy mix in the coming years and has announced setting up of small nuclear plants.

Moneycontrol takes a look at the rationale behind the government’s plan to include nuclear energy in India’s energy basket.

What are small nuclear reactors?

As the name suggests, small modular reactors (SMRs) are nuclear reactors with smaller generating capacity than a traditional nuclear power reactor. SMRs generally have a power capacity of up to 300 MW(e) per unit.

Since they are smaller in size, SMRs can be manufactured and shipped to another site for installation. Such nuclear plants could be sited on locations not suitable for larger nuclear power plants with minimal risks as compared to a conventional nuclear reactor.

What was announced in the budget?

On July 23, Finance Minister Nirmala Sitharaman said nuclear energy is expected to form a very significant part of the energy mix for Viksit Bharat.

While presenting the budget, the Finance Minister announced the government’s intent of partnering with the private sector for setting up Bharat Small Reactors along with the research and development of Bharat Small Modular Reactor and newer technologies for nuclear energy.

The government would provide funding for the research and development in the sector.

What is the target for nuclear energy in India?

Majorly opposed by environmentalists for the risks associated with it, the development in nuclear energy has remained stagnant over the years. The share of nuclear energy is less than 3 percent in the country’s total energy mix.

India has 23 nuclear reactors in operation in eight nuclear power plants, with a total installed capacity of 7,380 MW while its current installed nuclear power capacity is 6,780 MW.

The country plans to add 21 more atomic power generating units with a total installed capacity of 15,700 MW by 2031.

What is the rationale behind the move?

In order to achieve net zero emissions target by 2070, India has been focused on initiating green energy projects in the country while providing financial support for related schemes. The Indian government has set an ambitious target of achieving 500 GW of renewable energy installed capacity by 2030.

The Economic Survey 2023-24 tabled by the government on July 22 said India needs to target a diversified set of energy sources to ensure energy security while meeting nationally determined contribution (NDC) targets. The integration of renewables, alongside exploring nuclear energy and biofuels, could help achieve such diversification, the survey said.

Which countries are leading in SMRs?

Though at a nascent stage, countries including Russia and China are currently the leaders in the space. Several other countries including the US, Canada and South Korea are at the developing stage as of now.

Both Russia and China had started commercial operation of SMRs in the respective countries in the recent years. Russia has also recently signed an agreement with Uzbekistan to supply a small modular reactor nuclear plant—which is expected to be commissioned in 2028.

Does it make sense to bet on SMR?

For India, which is looking to diversify its energy sources, foraying into nuclear energy could result in inching towards the goal of energy security.

India has been looking at international partnerships to move ahead in the SMR space. According to media reports, India and Rosatom, Russia’s atomic energy company, are in talks for supply of technology for SMR. Meanwhile, India and France have agreed to collaborate on low and medium power modular reactors or small modular reactors as well as advanced modular reactors.

However, growth in nuclear energy has remained stagnant in India and globally majorly on account of the huge capital investment required and technological and environmental issues.