Nuclear focus promising but risky; strong regulatory measures key

While accelerating nuclear adoption and private sector involvement, the government must ensure strong regulatory measures to maintain safety

That the government has warmed up to nuclear energy can be deduced from the fact that it found mention in successive Union Budgets. The final Budget for FY2024-25 had talked of small modular reactors (SMRs) — essentially small nuclear power plants with a capacity of less than 300 Mw (e) — and the need to partner with the private sector in research and development. The current Budget proposals build on that by talking of a 100 Gw (e) target by 2047 and at least five SMRs being ready and operational by 2033. These are bold steps, given that while SMRs are being developed worldwide, their long-term economic viability remains unproven.

 

Private sector SMRs are also the way the world seems to be heading and had been recommended by a NITI Aayog–Department of Atomic Energy report in 2023. In the US particularly, SMRs are being seen as a panacea for the rising energy demand driven by artificial intelligence (AI). Even otherwise, SMRs are being touted as a critical component of a carbon-free energy future. They are either being deployed or are in the planning stages in Russia, the US, Canada, Argentina, China, South Korea, and other countries. The International Atomic Energy Agency (IAEA) states that more than 80 commercial SMR designs are under development worldwide, with varying outputs and applications. Some of the most enthusiastic evangelists for nuclear energy and SMRs are Silicon Valley’s AI tech giants, who see them as a solution for their growing power appetite.

 

India’s current nuclear energy generation — about 8.18 Gw (e) — is not huge. At least some of this is due to barriers imposed by the US, primarily, and other developed nations, which were loath to share technology and raw materials with developing countries, even for peaceful nuclear energy use. Like many other things, this stance has shifted—mainly due to the exponential rise in energy demand driven by AI and cryptocurrencies, as well as pressure from SMR entrepreneurs seeking new markets.

 

Therefore, India should not find it difficult to get five SMRs up and running by 2033, though whether they will be truly indigenous or merely licensed technology remains to be seen.

 

To get the private sector in, the government is planning to amend the Atomic Energy Act (AEA) and the Civil Liability for Nuclear Damage Act (CLNDA) to make it easier for everyone concerned to procure technology and operationalise SMRs without too many regulatory hoops. And it is here that the concerns primarily lie.

 

The current generation of SMRs is purportedly much safer and more efficient than the older, large-scale nuclear plants that occasionally made headlines due to accidents. The Three Mile Island incident, the Chernobyl disaster, and the Fukushima meltdown were among the key events that led to nuclear energy falling out of favour. Apart from accidents, the high cost of building and maintaining nuclear plants, and the challenges of dealing with nuclear waste, were reasons for the world to look for alternatives. While current SMRs are expected to be less capital-intensive and are claimed to be safer, these advantages have yet to be fully demonstrated. Their smaller size and scale might ensure that the fallout of any accident is limited to a relatively small geographical area and affects a smaller population, but this is by no means guaranteed or proven. Indeed, as SMRs proliferate and nuclear energy capacity expands, the probability of accidents and associated risks may also increase.

 

More importantly, the problem of what to do with nuclear waste has still not been satisfactorily solved—and it could well emerge as the biggest challenge. As SMRs pop up around the world, the amount of nuclear waste will start piling up. Given that the world has not found a solution to dealing with their disposal, this could become a serious issue within a decade or so.

 

Finally, there is always the risk that some enriched nuclear fuels could be diverted for non-peaceful purposes, and, therefore, strict safeguards, monitoring and regulations are required.

 

SMR technology and design are rapidly evolving, and SMRs may be a viable option in many cases as the world seeks to decarbonise. However, they are no panacea, nor should the dangers inherent in the large-scale adoption of nuclear power be downplayed.

 

What is needed is for Indian policymakers to ensure that strong, well-thought-out regulations and safeguards are put in place, along with a robust monitoring mechanism staffed with trained personnel. Moreover, the monitoring and regulatory authority should have the necessary authority to act swiftly in case of any danger.

 

The government is on the right path in accelerating the adoption of nuclear energy and encouraging private sector participation. However, it must balance this with the regulatory measures necessary to ensure safety.

 

Finally, it must closely monitor SMR developments worldwide, ensuring India can respond swiftly as more information and advancements emerge in this field.

 

The author is former editor of Businessworld and Business Today, and founder of Prosaic View, an editorial consultancy