Global tech giants Amazon, Microsoft and Google are embracing nuclear energy to power data centers and mitigate energy demands of artificial intelligence (AI). The investments in nuclear power signify a shift toward clean as well as reliable energy that could redefine future energy sectors. Energy needs in India is growing rapidly and especially due to the growing tech sector. The country is to now rethink its approach to nuclear power.
The recent moves by tech titans highlight a growing interest in Small Modular Reactors (SMRs), which are compact and cost-effective reactors facilitated with swiftly assembling compared to conventional reactors. SMRs leverage high-assay low-enriched uranium (HALEU) with a higher concentration of uranium-235. The innovation promises faster deployment and lower costs but experts warn of challenges in managing SMR waste. India’s decisions on nuclear policy will need to balance innovation with caution.
India’s electricity grid is heavily dependent on coal and nuclear energy contributes less than 2% to the overall mix. The government operates 22 nuclear reactors and these generate a total of 6,780 MW. India has the target of tripling nuclear capacity by 2032.
The Atomic Energy Act restricts reactor ownership to state entities and the Civil Liability for Nuclear Damage Act (CLNDA) places full liability on operators. All these deter private players from entering the market.
Reports suggest that India is already exploring private participation through talks with companies like Reliance Industries, Tata Power, Adani Power and Vedanta. Each potentially commits substantial investments in a hybrid public-private model. The approach could bring technological advancements and financial resources into the sector. India need to create a regulatory environment that assures investors without compromising safety or accountability.
Clinging to state-owned dominance may limit the potential of the nuclear sector while opening up to private players could bring both innovation as well as resilience to India’s energy future.
