In a groundbreaking move for India’s nuclear energy landscape, the Nuclear Power Corporation of India Limited (NPCIL) will soon operate small nuclear power plants of 220 MW capacity, specifically designed for private companies. This marks the first time private players will participate in the nuclear energy space by providing both funding and land for these reactors, while NPCIL will handle the operation and management of the plants. This collaboration is set to begin by late 2024 or early 2025.
These small reactors, dubbed ‘Bharat Small Reactors,’ represent a significant milestone in India’s nuclear energy strategy. Research and development for this project are already underway at the prestigious Bhabha Atomic Research Centre (BARC). The design for these reactors is likely to be based on India’s highly successful Pressurised Heavy Water Reactor (PHWR) technology, which the country has refined over decades.
The Push for Small Reactors
One of the key benefits of these small reactors is their flexibility. Unlike larger plants, which require an exclusion zone of up to 1.5 kilometers for safety, the exclusion zone for Bharat Small Reactors will be reduced to just 500 meters. This reduction opens up new possibilities for situating these plants closer to industrial areas and energy-intensive sectors like steel manufacturing, which could lead to more efficient and sustainable energy solutions.
Many industries currently rely on captive power plants, but these small reactors offer a cleaner and more sustainable alternative. If successful, these small reactors could replace older, less efficient energy systems currently in use in various industries across the country.
No Legal Hurdles
A key advantage of this arrangement is that the Atomic Energy Act, which restricts nuclear energy operations to government-owned entities, will not require any amendments. Since NPCIL, a public sector undertaking under the Department of Atomic Energy, will operate these plants, the legal framework remains intact.
Finance Minister Nirmala Sitharaman had hinted at this collaboration in her Union Budget speech earlier this year. She announced the government’s intent to partner with the private sector in developing Bharat Small Reactors and conducting research into small modular reactors (SMRs). However, she did not delve into further details at the time.
Cost-Effective Technology
While many foreign players have shown interest in bringing small modular reactors to India, the cost remains a significant barrier. For instance, building a small modular reactor in collaboration with foreign companies could cost up to ₹100 crore per MW, making it prohibitively expensive. In contrast, the NPCIL’s plan to use PHWR technology will bring the cost down dramatically to around ₹16 crore per MW. This makes the Bharat Small Reactors a more viable and affordable option for private sector collaboration.
Globally, small modular reactors are still in the development stage, with only a handful operational. According to the International Atomic Energy Agency (IAEA), over 80 SMR designs are in progress worldwide. Currently, there are four small modular reactors in advanced stages of construction in countries like Argentina, China, and Russia. Despite this, small modular reactors are seen as critical in the future of energy transition, especially in reducing reliance on fossil fuels and mitigating the effects of climate change.
India's Nuclear Expansion
India has long been a player in the global nuclear energy arena. Over the years, the country has successfully scaled its PHWR technology from 200 MW to 220 MW and, eventually, to 700 MW. Currently, NPCIL operates 24 nuclear power plants, 18 of which are PHWRs. Of these, 14 are 220 MW reactors, reflecting the long-standing success of this particular technology.
Small modular reactors, like the Bharat Small Reactors, offer the advantage of being factory-built rather than constructed on-site, which reduces time and cost. Moreover, their mobility and flexibility mean they can be set up in locations that might not be suitable for traditional, large-scale nuclear plants.
This initiative comes at a crucial time when India is ramping up its nuclear energy capacity to meet its ambitious climate goals. Currently, India has an installed nuclear capacity of 7,480 MW, which is projected to reach 22,480 MW by 2031. The addition of small modular reactors like the Bharat Small Reactors will not only contribute to this expansion but also offer a cleaner, more efficient energy solution for industries across the country.
In conclusion, NPCIL’s operation of small 220 MW nuclear reactors for private players could revolutionize India’s nuclear energy sector. By leveraging the proven PHWR technology, this collaboration promises a cost-effective and efficient pathway to meeting the country’s growing energy demands, all while aligning with India's net-zero goals.
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