India bets on nuclear power for its green energy future

India's nuclear power mission
Amid rising energy demand and global climate commitments, India's nuclear power programme offers both opportunities and challenges.

As India strives to meet its net-zero target, nuclear energy is becoming a key element in its energy transition strategy. The government has announced plans to triple nuclear power capacity from the current 8,180 MW to 22,480 MW by 2031-32. With partnerships like NTPC’s recent collaboration with Clean Core Thorium Energy to develop thorium-based nuclear fuel, and the initiation of the second stage of the three-stage nuclear programme with the prototype fast breeder reactor at Kalpakkam, the debate surrounding nuclear power’s role as a ‘green’ energy source has gained new urgency.

India’s nuclear power generation has grown twice as fast as the global average in recent years, with an annual growth of 4.4% in 2023 compared with the world’s 2.2%, according to the UK-based Energy Institute. While the global nuclear generation capacity has not yet returned to its 2006 peak of 2,803 terawatt-hours (TWh), India’s share has reached a historic high of 1.76% of global nuclear power generation. This growth reveals the increasing recognition of nuclear energy as a reliable power source in an era of rising energy demand, driven by economic growth, digitalisation, and the electrification of industries.

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Energy security and environmental goals

The role of nuclear power in India’s energy strategy is complex. On one hand, it helps address the twin challenges of reducing carbon emissions and ensuring energy security. Unlike fossil fuels, nuclear power does not produce carbon dioxide during operation, making it a tool for decarbonising the energy sector. This is especially relevant as India’s fossil fuel imports raise economic and strategic vulnerabilities. Moreover, nuclear power plants offer a reliable and continuous base-load energy supply, which is critical for powering industrial growth and supporting intermittent renewable energy sources like solar and wind.

The debate over whether nuclear power qualifies as ‘green’ energy is far from settled. Proponents argue that nuclear energy is one of the cleanest options available. It avoids the air pollutants and greenhouse gas emissions associated with coal and natural gas plants. In terms of lifecycle emissions, nuclear power is comparable with wind and solar energy, making it a valuable component of global efforts to reduce emissions. However, critics highlight the challenges of radioactive waste disposal, high upfront costs, and public safety concerns.

The long-term sustainability of nuclear energy is also questioned, as current uranium reserves are estimated to last only about 90 years. While India has abundant thorium reserves—estimated to constitute 21% of the global total—developing the technology to utilise thorium effectively remains a significant hurdle.

India’s thorium advantage

India’s efforts to tap into its thorium reserves are part of its three-stage nuclear energy programme, envisioned by Homi Bhabha. The recent initiation of core loading for the prototype fast breeder reactor in Tamil Nadu marks an important milestone in this programme. Thorium-based reactors could reduce dependency on imported uranium and make India’s nuclear programme more self-sufficient. However, the technology for thorium utilisation is still in the developmental phase, requiring significant investment in research and development.

Despite its potential, India’s nuclear programme faces several challenges. Building nuclear power plants is capital-intensive, with high upfront costs and frequent cost overruns. The current installed capacity of 8,180 MW falls far short of the Atomic Energy Commission’s vision of 650 GW by 2050. Public opposition is another significant barrier, fuelled by fears of nuclear disasters like Chernobyl and Fukushima. Protests against nuclear projects highlight the need for greater public awareness and trust-building initiatives. Additionally, India’s stringent liability laws, which hold operators accountable for accidents, have deterred foreign suppliers and investors. This has delayed critical projects and slowed the pace of nuclear expansion.

Exploring technological solutions

Technological challenges also persist. Many of India’s operational reactors, such as those at the Kudankulam Nuclear Power Plant, rely on older designs that face frequent operational issues. To address these concerns, India is exploring the deployment of small modular reactors (SMRs), which offer advantages such as lower costs, enhanced safety features, and scalability. SMRs could also be deployed at retiring coal plant sites, aligning with India’s broader energy transition goals.

International partnerships and policy reforms are playing a crucial role in advancing India’s nuclear ambitions. The United States recently announced plans to remove longstanding restrictions on Indian nuclear entities, a move expected to enhance bilateral energy cooperation. The 2007 Indo-US nuclear deal and subsequent agreements to build US nuclear reactors in India are indicative of the growing strategic alignment between the two nations. However, unresolved issues like liability laws and equipment procurement remain significant hurdles.

Balancing promise and challenges

The potential of nuclear energy to help India achieve its net-zero targets is undeniable, but the path forward requires addressing these challenges comprehensively. Increased investment in indigenous technologies, such as pressurised heavy water reactors (PHWRs), and accelerated development of thorium-based reactors are essential. Public trust can be strengthened through transparent communication and community engagement, while innovative financing models involving multilateral banks and institutional investors can mitigate the high upfront costs of nuclear projects.

Nuclear energy is not a panacea for India’s energy challenges, but it is an indispensable component of a diversified energy strategy. Its role in reducing carbon emissions, ensuring energy security, and supporting industrial growth positions it as a key player in India’s journey toward sustainable development. As India faces the complexities of nuclear energy, balancing its promise with its challenges will determine whether it becomes the solution the country seeks or a gamble with far-reaching consequences.