THE CONTEXT: The global pursuit of a net-zero economy underscores the imperative of substantially electrifying end uses of energy and adopting low-carbon processes in industries. In India’s context, fulfilling rising electricity demand in tandem with achieving decarbonization necessitates a diverse energy mix, where nuclear power, alongside renewables (solar, wind, hydro), plays a critical role. Furthermore, hydrogen is emerging as a key vector for decarbonizing hard-to-abate industries and ensuring flexibility in the power grid.
NET-ZERO ECONOMY AND INDIA’S ENERGY REQUIREMENTS
1. Massive Electrification:
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- India’s energy consumption is set to soar as it targets a net-zero pathway.
- End-use electrification—particularly in transport, industry, and residential sectors—will significantly reduce direct fossil-fuel combustion.
2. Role of Hydrogen:
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- For industrial processes where electricity alone cannot meet the need for “molecules” (e.g., steelmaking, fertilizer production), hydrogen can serve as a substitute for fossil-based feedstock.
- India is increasingly recognizing the potential of hydrogen—particularly “green” or low-carbon hydrogen—in processes like steelmaking (as a reducing agent) and ammonia production.
THE GROWING IMPORTANCE OF NUCLEAR ENERGY
1. Electricity Demand Projections:
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- Multiple forecasts highlight a steep increase in electricity demand as India advances in economic development and decarbonization.
- Renewables, though abundant, have intermittency challenges, necessitating a stable baseload.
2. Government’s Aspirational Target:
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- India aims to achieve 100 GW of nuclear installed capacity by 2047 to complement solar, wind, and hydro.
- Nuclear Power Corporation of India Limited (NPCIL) has unveiled ambitious expansion plans, focusing primarily on Pressurized Heavy Water Reactors (PHWRs).
3. Recent Developments:
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- Operationalizing 700 MW PHWR units: Kakrapar in Gujarat, units in Rajasthan, and Haryana.
- The NPCIL’s announcement to build an additional fleet of 220 MW PHWRs—or Bharat Small Reactors (BSRs)—indicates a strategy for captive industrial use and diversification of the nuclear power ecosystem.
LOW-CARBON ENERGY MIX: BALANCING RENEWABLES AND NUCLEAR
1. Dominant Low-Carbon Sources:
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- Solar, wind, hydro, and nuclear will form India’s primary low-carbon electricity generation backbone.
- Flexibility Challenge: Solar and wind power are intermittent, while nuclear plants function optimally as base-load units.
2. Flexing Nuclear Power Plants:
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- Flexing or load-following is technically complex and economically suboptimal for high-capital-cost plants like nuclear.
- Advanced reactors under development may offer improved load-following capabilities but are currently still in the pipeline.
3. Grid Balancing Solutions:
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- Coal-fired plants have traditionally been “flexed” to balance solar hours, but the net-zero trajectory demands phasing down of coal.
- Electricity storage (batteries, pumped hydro) and hydrogen production act as strategic solutions to absorb surplus renewable power and avoid curtailment of nuclear or renewables.
HYDROGEN AS AN ENABLER OF GRID STABILITY
1. Surplus Electricity and Hydrogen Production:
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- Electrolysers can be operated flexibly to produce hydrogen when there is surplus electricity in the system, reducing the need to ramp down nuclear or curtail renewables.
- This hydrogen is then employed in industries such as steel, fertilizer, refineries, etc., rather than reconverting it to electricity (which would incur efficiency losses).
2. Green vs. Low-Carbon Hydrogen:
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- Current policy incentives in India emphasize “green hydrogen”—produced from renewable sources with minimal emissions (<2 kg CO2/kg H2).
- Nuclear-produced hydrogen has a similarly low carbon footprint on a lifecycle basis, prompting calls to adopt a “low-carbon hydrogen” taxonomy that includes all production pathways with emissions below a defined threshold.
INTEGRATING HYDROGEN PRODUCTION AND ELECTRICITY STORAGE
1. Complementary Technologies:
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- Hydrogen generation and battery storage should be strategically combined to balance power supply and demand, reduce overall capital expenditures, and enhance operational flexibility.
- Such synergies can optimize costs, making large-scale renewable integration more feasible.
2. Policy Imperatives:
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- Recognition of Low-Carbon Hydrogen: Transition from “green hydrogen” to “low-carbon hydrogen” labeling to encompass nuclear-based production.
- Synergistic Frameworks: Encourage co-located or hybrid systems where battery storage and electrolysers function in tandem, streamlining investments and ensuring minimal wastage of surplus electricity.
THE CHALLENGES:
SCALING NUCLEAR CAPACITY FROM ≈8 GW TO THE ASPIRATIONAL 100 GW (BY 2047)
| Dimension | Core Challenge | Analytical Insights & Illustrations |
|---|---|---|
| Capital & Finance | Financing ~ ₹15 18 lakh crore (≈ US $180 215 billion) in < 22 years | Even at the historic cost of ₹18 crore/MW for PHWRs, the NPCIL’s fleet-mode plan demands 4 5× the entire DAE cap ex of the last three decades. Private capital is wary because the Civil Liability for Nuclear Damage Act, 2010 imposes supplier liability—2025 budget talks of a limited liability fund but are yet to pass Parliament. |
| Regulatory Bottlenecks | Atomic Energy is Union List Entry 6, yet multiple clearances (AERB, MoEFCC, CRZ, local land boards) cause 6 8 year gestation. | Kudankulam Units 3 6 illustrate serial clearances causing > ₹5,600 crore cost over run; SC in G. Sundarrajan v. UoI (2013) upheld the project but mandated 15 additional safety conditions—each future site must replicate similar multi layer scrutiny. |
| Fuel Cycle Security | Uranium import dependence > 80 % | Kazakhstan, Canada & Russia supply India; geopolitical sanctions (e.g., 2024 Rosatom export controls) could simultaneously paralyse reactors > 20 GW. The Integrated Energy Policy (Planning Commission, 2006) recommended a strategic uranium reserve of five years—still not created. |
| Waste & Public Acceptance | No deep geological repository; coastal siting protests | Jaitapur and Mithi Virdi stalled for > 10 years. Risk perceptions amplified after Fukushima. NPCIL’s outreach budget is < 0.1 % of project cost—a false economy in the age of RTI enabled scrutiny. |
| Human Capital | Annual DAE/NIAS training pipeline ( 4,000 engineers/yr needed | Without a Nuclear Skills Mission (on lines of the National Solar Mission’s Suryamitra), EPC delays will remain structural. |
THE WAY FORWARD:
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- Adopt a Unified “Low‑Carbon Molecule” Taxonomy & Marketplace: Amend the forthcoming National Green Hydrogen Policy to a Low‑Carbon Hydrogen Rules, 2025 that recognises any pathway ≤ 2 kg CO₂‑eq / kg H₂, mirroring the EU Complementary Climate Delegated Act, 2022 which classifies nuclear electricity as “environmentally sustainable”. Tradable “Hydrogen Attribute Certificates (HACs)” on the Indian Gas Exchange, fungible across RE‑, nuclear‑ and biomass‑based H₂, lowering transaction costs.
- Fleet‑Mode Nuclear‑PPP 2.0 with a “Limited‑Liability Pool”: A tripartite Baseload Power Trust pools Centre (51 %), state utilities (15 %), and sovereign/insurance funds (34 %) equity, letting EPC majors bid fleet packages of 4‑6 PHWRs, slashing overnight cost by 15‑18 %.
- Launch “Green Industrial Cluster Missions” (GIC‑2035) for Hard‑to‑Abate Sectors: Identify 6 coastal‑inland pairs (e.g., Kandla–Jamnagar, Paradip–Jamshedpur). Each cluster hosts H₂ pipelines, common utilities, and a Special GST Zone offering 50% GST reimbursement for first‑mover low‑carbon steel/ammonia.
INTEGRATED IMPACT MATRIX:
| Solution | Upstream Impact | Downstream Impact | Co Benefits |
|---|---|---|---|
| Low Carbon Taxonomy | De risks nuclear & biomass projects | Affordable H₂ for industry | Aligns with EU, avoids stranded assets |
| Nuclear PPP 2.0 | Mobilises ₹15 18 lakh cr | 24 × 7 clean baseload | Cuts import coal bill by $10 bn/yr |
| Flexibility Market | Stimulates BESS & electrolyser mfg | Prevents RE curtailment | Saves ~20 Mt CO₂/yr by 2030 |
| Industrial Clusters | Aggregates H₂ demand | Green steel & ammonia exports | Adds 1 mn green jobs by 2035 |
| Just Transition & Skills | Reskills coal workers | Supplies nuclear/H₂ talent | Upholds inclusive growth (Art 38) |
| SMFS 2040 | Secures critical inputs | Stable RE + nuclear rollout | Reduces forex outflow, boosts recycling |
THE CONCLUSION:
A strategically integrated low-carbon energy ecosystem—anchored in 100 GW nuclear capacity and scalable hydrogen production—can power India’s net-zero ambition by 2070 while ensuring energy security and industrial competitiveness.
Harnessing indigenous PHWR expertise and synergising storage with green hydrogen, India can lead the global shift towards a resilient, clean, and inclusive energy future.
UPSC PAST YEAR QUESTION:
Q. With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy. 2018
MAINS PRACTICE QUESTION:
Q. Discuss the role of nuclear power and hydrogen in achieving India’s net-zero target. Evaluate the challenges of integrating renewable energy, nuclear power, and hydrogen production in India’s energy transition strategy.
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