The Union Budget’s renewed support for nuclear energy with Rs 20,000-crore Nuclear Energy Mission has received overwhelming response from private players, including many smaller companies, who are looking to invest in the sector as part of their clean energy targets.
To fast-track private investment in the nuclear sector, the government has said it will introduce amendments in the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. India is targeting the development of at least 100 GW of nuclear energy by 2047.
Big players such Adani, Reliance, JSW, Vedanta, NTPC, and Tata Power have already shown interest in the sector. Now, companies in the renewable energy space such as ACME Solar Holdings are also looking to diversify into nuclear energy.
Other companies in hard-to-abate sectors such as cement, steel and chemicals have also shown interest in the nuclear power sector. These were all part of a recent discussion with the government on opening up the nuclear sector to private players.
Nikhil Dhingra, CEO of ACME, says while the company’s core focus remains on solar, wind and hybrid renewable energy projects, it is exploring nuclear energy investments. ACME Solar Holdings plans to invest Rs 17,000 crore to boost renewable energy capacity to 5 GW by 2026.
“We are keen on nuclear power because other than power production, we are primarily in the PPA (power purchase agreement) business. Our aim is to sell power in a long-term contracted manner. We do not want to take merchant risk in a significant way. Hence, we will participate in nuclear power as much as we can, provided a framework is put in place,” said Dhingra.
There has been growing interest among private players in the nuclear energy sector as part of their energy transition roadmap. However, the discussion is at a very early stage keeping in mind that it requires changes in the legal framework for private players to participate. Nuclear is considered a clean source of energy and these companies are looking to partner with Nuclear Power Corporation of Indian Limited (NPCIL) for R&D and collaboration.
The NPCIL on December 21, 2024, called for a Request for Proposal for building two Bharat Small Reactors (BSRs) of 220 MW but the deadline has been postponed thrice due to clauses in the document.
Industry players have flagged certain issues regarding the bid and discussions are being held on streamlining it.
“This is something unviable and also how do we finance our projects under these conditions? These need to be reworked,” said an industry player.
According to NPCIL, the user (industry) shall bear all costs of operation of the BSR, including fuel, heavy water, maintenance that involves biennial shutdown for 40 days, disposal of spent fuel, taxes and insurance, without any say in the operations. The NPCIL will transfer the net electricity generated and the user shall make its arrangements to sell the electricity, but at tariffs determined by the Department of Atomic Energy.
It also says that the user is to build the BSR under the supervision and control of NPCIL and transfer it to NPCIL for a consideration of one rupee and the ownership of the asset shall then vest with NPCIL.NPCIL shall operate the plant for which the user shall pay an “expertise fee” of 60 paise per kWhr of electricity generated, which shall increase by one paise every year after 2030-31.