Nuclear energy pumped storage efficient thermal plants at centre of India's energy transition plan

    New Delhi, Jul 23 (PTI) India's energy transition plan will focus on developing small modular nuclear reactors, pumped-storage projects and more efficient thermal plants, the government announced on Tuesday.
    Presenting the 2024-25 Budget in the Lok Sabha, Union Finance Minister Nirmala Sitharaman said the government will collaborate with private firms to develop small modular reactors (SMRs) and conduct research on advanced technologies to boost the share of nuclear power in India's energy mix.
    Sitharaman also said a roadmap will be prepared to shift "hard to abate" industries, such as shipping, aviation, iron and steel and chemicals, from focusing on energy-efficiency targets to emission targets.
    To balance employment, growth and environmental sustainability, the government will release a policy document outlining appropriate energy-transition pathways. A taxonomy for climate finance will be developed to enhance the availability of capital for climate adaptation and mitigation, Sitharaman said.
    "Nuclear energy is expected to form a very significant part of the energy mix for Viksit Bharat. Towards that pursuit, our government will partner with the private sector for setting up Bharat small reactors, research and development of Bharat small modular reactors, and research and development of newer technologies for nuclear energy," she said.
    SMRs are smaller, compact nuclear power plants (300 MWe or less) compared to current-generation base load plants (1,000 MWe or higher). These factory-fabricated reactors can be transported by trucks or rail to a nuclear power site and their output can be scaled by combining several units to achieve larger capacities.
    Chief Economic Advisor V Anantha Nageswaran noted in the economic survey that the combined deployment of factory-manufactured, made-in-India SMRs, along with standardised 700-MWe pressurised heavy water reactors (PHWRs), could be an effective strategy for rapidly scaling up nuclear power capacity in India.
    Nuclear power does not need expensive carbon-capture technology or critical minerals. Its plant load factor (PLF) -- a measure of a power plant's capacity utilisation -- could be as high as 80-85 per cent, way above all other energy-mix options.
    Nuclear power's contribution to India's electricity capacity stood at a meagre 1.46 per cent in 2023. Developed nations, such as the United States, the European Union countries and the United Kingdom, generate 19 per cent, 25 per cent and 15 per cent of their electricity from nuclear power respectively.
    A policy promoting pumped-storage projects will be introduced to store electricity and facilitate the integration of the growing share of renewable energy with its variable and intermittent nature, Sitharaman said.
    A pumped-storage project involves two reservoirs, one on top of a hill and another at the bottom. Excess electricity is used to pump water uphill to the upper reservoir. When electricity demand spikes, the water is released to the lower reservoir through a turbine, generating power. This system is particularly significant given the unpredictable nature of solar and wind energy.
    Sitharaman also announced that the development of indigenous technology for advanced ultra super critical (AUSC) thermal power plants, which offer much higher efficiency, has been completed. A joint venture between the National Thermal Power Corporation (NTPC) and Bharat Heavy Electricals Limited (BHEL) will set up a full-scale 800-MW commercial plant using AUSC technology, with the government providing the necessary fiscal support.
    Conventional coal-fired power plants heat the water to create steam, which is transferred at high pressure to turbines linked to a generator. They have an efficiency of about 32 per cent.
    Supercritical (SC) and ultra-supercritical (USC) power plants operate at temperatures and pressures above the critical point of water -- at which point there is no difference between water gas and liquid water. SC and USC power plants require less coal per megawatt-hour, leading to lower emissions (including carbon dioxide and mercury), higher efficiency (above 45 per cent) and lower fuel costs per megawatt.
    Sitharaman said the government will fully exempt customs duties on 25 critical minerals and reduce basic customs duty on two of those. "This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors."
    To transition "hard to abate" industries from the current "Perform, Achieve and Trade" mode to the "Indian Carbon Market" mode, appropriate regulations will be established.
    Aarti Khosla, the director of independent think tank Climate Trends, said the focus on critical minerals, a policy for pumped-storage projects and the decision to develop a policy document on energy transition pathways is laudable.
    "However, it remains to be seen how the role of nuclear power in India's energy mix takes shape. The budget lacks timelines for announcements on taxonomy, carbon-pricing mechanisms and detailed strategies for mobilising climate finance for adaptation and mitigation efforts," she said.
    Suranjali Tandon, associate professor, National Institute of Public Finance and Policy, said the industry and investors have been demanding a taxonomy and a transition pathway as guidance for the flow of finance and reorientation of economic activity.
    The announcements of a carbon market, taxonomy and transition pathways mark significant progress in planning towards net zero in 2070, she said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)