India’s Atomic Ascent: Powering the Future with Nuclear Energy

Nuclear power is the seventh-largest source of electricity in India after coal, solar, wind, hydro, gas and biomass. As of November 2024, India has 24 nuclear reactors in operation in 8 nuclear power plants, with a total installed capacity of 8,180 MW. Nuclear power contributes around 3% of total power generation in India.

Illustration by The Geostrata

INDIA’S AMBITIOUS ENERGY GOALS 

Moreover, India has pledged to achieve a net-zero carbon emission target by 2070 and has a target of 500 GW of renewable energy by 2030.This is where nuclear energy comes into the picture.  Additionally , the budget for the year 2023-24 mentioned about 100GW of installed capacity in nuclear by 2047. Over the past 6 months, the idea of "nuclear for net zero" has gained significant steam.

At the United Nations Climate Change Conference or COP 28 held in Dubai in December 2023, a coalition of 20 countries declared they would triple their nuclear capacity by 2050.

Though India is not part of this coalition, it too has drawn up similar, if not more ambitious, plans for harnessing the atom to create energy. 

Nuclear energy had another spotlight moment when world leaders gathered in Brussels in March 2024 for the first nuclear energy summit ever held. It was at this summit that India declared its plan to triple its nuclear energy capacity by 2030. This means India’s nuclear capacity, currently around 7.5 GW, will be ramped up to 22.5 GW over the next 16 years. 

GLOBAL NUCLEAR ENERGY LANDSCAPE 

Sixty years ago, for the first time, a nuclear power plant at Obninsk was connected to a power grid in the Soviet Union. The World Nuclear Association reports that today, there are about 440 nuclear power reactors operating in 32 countries, with a combined capacity of about 390 GW. In 2022, these reactors generated approximately 10 per cent of the world's electricity. Unlike solar, wind, and hydro energy, nuclear energy is technically non-renewable. This is because nuclear energy is generated through the fission of uranium, which, although currently abundant, is still an exhaustible source present in limited quantities.  

However, nuclear waste is a by-product of nuclear energy generation that can be recycled and reused as fuel to generate more energy. This brings nuclear energy nearly at par with renewables. 

THREE STAGE NUCLEAR PROGRAMME

India’s nuclear power programme is based on the principle of "reprocess to reuse". India has adopted a closed fuel cycle, where the spent fuel of one stage becomes the feeder fuel for the next stage. 

When it comes to emissions, nuclear power emits 4 times less CO2 than solar power, 2 times less CO2 than hydroelectricity, and the same amount as wind power. Further, 1 kg of CO2 emissions are saved every time a unit of nuclear power replaces an equivalent amount of coal-based power. This means that when India generates 37,456 million units of nuclear energy, it amounts to savings of over 37 million tonnes of CO2 in a year. 

The fact that nuclear power is a ‘low-carbon’ energy source simply cannot be disputed. However, there is still hesitation to put nuclear in the clean energy category because of the radioactive waste produced. Further, Countries around the world are making significant investments to expand their nuclear energy supply. Hence, it is imperative to assess India’s energy requirement and the role nuclear power can play to meet the demand.

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Moreover, India is the world’s third-largest energy consumer, behind the United States and China. While coal continues to be the main energy-generating source, accounting for 49 per cent of the total capacity, approximately 30.20 per cent of power generation comes from renewable energy sources, such as solar and wind.

As of May 2023, nuclear energy in the country generated 6,780 MU of power, constituting a share of 1.6 per cent of total energy generation. India views the growth of its nuclear power program as essential for achieving energy security and sustainable development goals.

As of March 2024, India has progressed to the second phase of its nuclear program, marked by the initiation of “Core Loading” at the indigenous Fast Breeder Reactor located in Kalpakkam, Tamil Nadu.

India has developed extensive capabilities across the nuclear fuel cycle. In 2003, approval was granted for Bhartiya Nabhikiya Vidyut Nigam Ltd. (BHAVINI) to design, construct, and operate the Prototype Fast Breeder Reactor (PFBR), which became India’s most advanced nuclear reactor. It was done in close collaboration with over 200 Indian industries, including MSMEs. Once operational, India will become the second country after Russia to have a commercial Fast Breeder Reactor.

On India’s energy usage, the government’s tank body Niti Ayog notes that commercial and industrial sectors experienced an overall increase in electricity consumption of 115.12 percent between 2006 and 2022.

Given this context, nuclear energy investment is important for India to diversify its energy sources and to mitigate the rising costs of procuring fossil fuels. By 2050, the country hopes to have 25 percent of its electricity from nuclear sources, for which a base-load capacity of 1094 GW is required.

POLICY AND INFRASTRUCTURE CHALLENGE

India aims to attract approximately US$26 billion in private investment into its nuclear energy sector.

This move is anticipated to benefit private companies by allowing them to earn revenue from electricity sales generated by the power plants, while the Nuclear Power Corporation of India Limited (NPCIL) would oversee project management for a fee.

However, India has faced challenges in meeting its nuclear power capacity expansion targets, primarily due to difficulties in securing nuclear fuel supplies. The current FDI policy categorizes atomic energy as a prohibited sector. Nevertheless, there are no restrictions on FDI in the nuclear industry for equipment manufacturing or supplying other materials for nuclear power plants and associated facilities. Private companies are also permitted to undertake construction contracts for activities beyond reactor operations.

Energy industry experts are advocating for a hybrid model of nuclear power project development that could offer innovative approaches to accelerate nuclear capacity expansion. To prevent delays in project completion and operation, the nation must also address hurdles in acquiring land for nuclear power plant construction.

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BY TANU NAGAR

TEAM GEOSTRATA

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