India's Nuclear Power Sector to Open Doors for Private Firms

India's state-controlled nuclear power sector is considering welcoming private firms into its fold to develop small modular reactors (SMRs).

Bloomberg News reports that the move comes as part of India's commitment to reducing its heavy reliance on coal, which currently accounts for around 70% of the nation's electricity generation.

India's Atomic Energy Laws

In a significant move, India is reviewing its long-standing atomic energy law to pave the way for more involvement from non-state companies.

Federal atomic energy minister Jitendra Singh disclosed this development in a parliamentary session, underscoring the potential shift in India's nuclear power landscape.

Although the country currently allows private companies to participate in nuclear plants' construction and technology aspects, operational control and fuel management have remained in the hands of government-owned entities.

India has already committed to having half of its power generation capacity running on clean sources by the end of the decade. It is a crucial milestone toward achieving the target of becoming net zero by 2070.

Turning to SMRs

Detailed technical discussions are underway to assess the feasibility of SMR technology, which promises quicker construction times and easier integration into the grid, making them ideal for remote locations and off-grid power solutions.

The government is actively exploring collaborations with other countries to jointly develop such reactors, which could accelerate India's transition to a low-carbon future.

Leading the charge for SMRs is the state-run NTPC Ltd., India's largest power producer, which has shown great interest in leveraging this technology's benefits.

SMRs are factory-built and ready-to-shift, each unit capable of producing up to 300 megawatts (MW) of electricity. Their smaller scale and more flexible nature make them a promising option for expanding nuclear power capacity. Despite the promise, SMR technology is still in its nascent stage.

Currently, only two reactors are operating in Russia and two others in China, according to the International Atomic Energy Agency. However, India aims to increase its nuclear power capacity from 7.5 gigawatts to almost 22.5 gigawatts by 2031.

Opening Doors to Foreign Investments

Reuters reported back in May that a government panel, led by think-tank Niti Aayog and headed by Prime Minister Narendra Modi, has recommended changes to India's Atomic Energy Act 1962 and foreign investment policies to enable domestic and foreign private companies to contribute to nuclear power generation.

This could potentially attract international players like Westinghouse Electric, GE-Hitachi, Electricite de France (EDF.PA), and Rosatom to participate as technology partners, suppliers, contractors, and service providers.

The focus on private participation, particularly through SMRs, aims to accelerate the pace of nuclear energy deployment. Nuclear power only contributes 3% of India's total power production, with coal accounting for a significant 75%.

The push to diversify the energy mix underscores India's dedication to environmental sustainability and reducing carbon emissions.

While the move towards private participation in the nuclear power sector holds great promise, it also brings new challenges. As a signatory to international conventions on nuclear safety, India must ensure that private companies adhere to stringent safety standards.

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