January 29, 2025
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The population of India is currently estimated at 1.42 billion people. By 2050, it is believed that India’s population could reach 1.67 billion people, by which point it will have surpassed China as the number one most populous country on the planet (China will have a predicted 1.26 billion people in 2050). India is globally the third largest emitter of greenhouse gases (GHGs), with a record-breaking 3.96 million metric tonnes of carbon dioxide equivalent (GtCO₂e) emitted in 2024, an increase of 0.5% from the previous year. These emissions are largely driven by a coal-dominated energy mix, which in 2024 provided a 72.5% share of India’s electricity generation. Substantial increases in power demand are expected in the following decades, as GDP, urbanisation and manufacturing scale up. There are conservative estimates that the total energy demand of the country will double by 2070 from the 2019 level.
India has pledged for an ambitious pursuit of the decarbonisation of energy generation at the COP26 Summit in Glasgow. They have committed to achieve 500 GW of non-fossil fuel based energy generation by 2030 and have targeted 2070 to achieve a net-zero carbon economy. They are forward-thinking in their development of clean technologies such as nuclear power and renewables. India’s nuclear power generation has nearly doubled in the past decade (4,780 MW in 2014 to 8,180 MW in 2024), and the nuclear capacity is projected to triple again to 22,480 MW by 2031-32. India has 21% of the world’s thorium reserves, and nine atomic power projects currently under construction, with others in the pre-project stage. Nuclear energy is ‘expected to form a very significant part of the energy mix for Viksit Bharat’ (Developed India) and is in line with the energy transition agenda of the government of India.
In addition to developing large scale reactors, in the most recent Union Budget 2024, the Indian government has announced a new hybrid approach to accelerate nuclear proliferation. It is funding the research and development of small and modular nuclear reactors. The government are open to collaborations with other countries for this work and have announced initiatives in the Union Budget to involve private sectors in the country’s nuclear energy programme, through research and development of ‘Bharat Small Reactors’ (BSRs).
This is a significant advance in policy. The private sector has been restricted from participating in nuclear energy generation since India’s Atomic Energy Act of 1962. Before this announcement, the state-owned Nuclear Power Corporation of India Limited (NPCIL) were the only entity allowed to build and deploy commercial nuclear power plants in India. The private sector has so far been limited to engineering, procurement and construction roles, or development of reactor infrastructure. This is therefore the first formal step in decentralising the nuclear industry, offering opportunities for private investment in a publicly owned arena. While this is not fully opening nuclear to private companies, it is positive that the government are considering proposals on this. The new proposal in the Union Budget allows private companies to take on the capital expenditure (CAPEX) of the construction of BSRs, providing the initial site evaluation study, land, water and capital. NPCIL would then supervise the construction and have responsibility for the design and quality assurance. Upon completion, the long-term possession, operation, control and maintenance of the plant would be performed by NPCIL, but the beneficial ownership, i.e. the right over electricity generated and available after auxiliary consumption, would remain with the private company with them continuing to provide the operating expense (OPEX). The Indian Department of Atomic Energy are planning to build 40-50 BSRs within the next seven or eight years using private capital and operating these within the existing legal framework and approved business models.
Bharat Small Reactors are 220 MWe Pressurised Heavy Water Reactors (PWRs) designed by the Babha Atomic Research Centre (BARC) – a multi-disciplinary national research centre. They are an indigenous Indian design and are distinct from Small Modular Reactors (SMRs). BSRs are amongst the cheapest nuclear reactors in the world, and are already well established in India, with several in operation, and with well-established production lines. They are compact, and small-sized, with an ‘impeccable safety and excellent performance record’ that is aligned to post-Fukushima regulatory standards. They feature a smaller nuclear island footprint than larger reactors, which reduces the exclusion and emergency planning zones. Due to their small size, modular construction, and scalability they are more cost-effective across their lifecycle than larger plants and can be constructed far more quickly than traditional reactors (around 4-5 years, compared to 6-8 years). BSRs can be installed in remote and isolated locations, which could increase rural communities’ energy access in India, and enable private industries to switch from captive power plants based on coal. BSRs are designed to help decarbonise hard-to-abate sectors, such as cement, chemicals, petrochemicals and metal production. It is anticipated that switching electrical generation to these BSR systems could help Indian industries to remain competitive globally by avoiding penalties such as proposed carbon border taxes, or carbon emission taxes. They are a timely, cost-effective and versatile solution to India’s decarbonisation mission and growing energy demand and are an attractive opportunity for private companies to expand their portfolio.
NPCIL have recently launched an ‘Invitation for Request for Proposal’ from ‘visionary Indian industries’ for setting up 220 MWe Bharat Small Reactors for captive use (electricity generation). Up until the 31st of March 2025, NPCIL are accepting proposals from industries to submit green and brownfield sites for BSR development, for ‘consumption of energy for their own use’ (with sale of electricity to other customers determined as per State and Government Regulations). Repower Initiative would encourage private companies who are interested in this opportunity to consider repurposing pre-existing coal-fired power plant (CFPP) sites wherever possible, not only for decarbonisation purposes, but also as more economically profitable sites than greenfields. BSRs have been designed to repurpose or retire coal-based plants according to BARC, and as 60% of India’s current coal-based fleet is less than 15 years old, there are numerous sites which would be viable based on the NPCIL’s criteria of location (proximity to seismic zones, presence of active faults, water requirements etc). A World Bank report found that the direct benefits of repurposing a typical CFPP in India vastly outweighed the direct decommissioning costs (US +$122.97 million compared to US -$58.11 million), and that the financial benefits of repurposing would also cover a significant fraction of the CAPEX of development costs. With existing buildings, infrastructure and of course employees, Repurposing CFPP sites with BSRs could be a cost-effective, environmentally positive and socially supportive move for private companies, as India expands its nuclear capacity.
Sources
https://neutronbytes.com/2025/01/03/india-to-deploy-a-fleet-of-40-50-220-mw-phwrs/
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2081169
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2083832
https://pib.gov.in/PressReleseDetailm.aspx?PRID=2083832®=3&lang=1
https://www.ndtvprofit.com/budget/nuclear-boost-private-partnership-for-bharat-small-reactors-heres-whats-at-stake
https://www2.deloitte.com/content/dam/Deloitte/in/Documents/energy-resources/in-eri-India%E2%80%99s%20energy-transition%20pathways-noexp.pdf
https://www.neimagazine.com/news/indias-union-budget-prioritizes-nuclear-energy/
https://www.npcil.nic.in/writereaddata/CMS/202412300511513510127RFP_Document_31122024_01.pdf
https://www.npcil.nic.in/writereaddata/Orders/202412310323106682453News_31122024_03.pdf
https://www.npcil.nic.in/WriteReadData/userfiles/file/Annual_Report_2023_2024_26082024_01.pdf
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