Budget 2024: Govt to rope in private sector to set up small nuclear reactors
Notable because
Although nuclear power is widely recognised as among the cleanest and most reliable sources of electricity, its grid penetration in India is a meagre ~2%. Moreover, there was no nuclear capacity addition between FY17-23. Until now, nuclear energy was entirely state-controlled and operated. In this context, the government’s decision to collaborate with the private sector is a landmark decision for both the future of nuclear power in India and the pace of India’s energy transition.
What to look out for in the months ahead
The government plans to rope in the private sector to design and build nuclear-powered small modular reactors (SMR). What will specifically be the position of private players in the nuclear reactor value chain? Moreover, SMRs are heavily capital intensive, and the cost of electricity generation is considerably higher when compared to alternative sources. Will the involvement of the private sector lead to cost reduction?