NTPC’s Big Move into Nuclear Energy: A Game Changer for India

By Palak Srivastava

NTPC’s Big Move into Nuclear Energy: A Game Changer for India

Introduction

India's energy sector stands at a turnaround point: the country's biggest power producer, NTPC, has decided to power its ever-increasing requirement for energy with nuclear energy. With some of the biggest coal-based power plants in the country, the NTPC is now eying nuclear power to give impetus to its energy portfolio. And that shares a bigger objective: shaving off carbon emissions and shifting toward clean sources of energy.

Why Nuclear Energy?

Among these, nuclear energy has several advantages that make it pretty appealing for India's future needs. First, nuclear power plants can generate large amounts of electricity without emitting carbon dioxide gas; therefore, they form a core of low-carbon strategies aiming at reducing greenhouse gas emissions. Secondly, nuclear power is reliable and stable in terms of the supply of electricity, unlike other renewable sources like solar and wind.

NTPC's foray into atomic energy is not merely to add to the country's energy requirements but to get energy security also. With its diversified energy mix, NTPC can reduce dependence on coal and other fossil fuels that are prone to price volatility and disruptions in supplies.

NTPC's Expansion Plans in Nuclear

NTPC has plans to emerge as a big nuclear energy player. The company has announced the creation of a wholly-owned subsidiary, NTPC Nuclear Power Company, to lead its nuclear projects. The first major project under this new subsidiary is building a nuclear power plant at Mahi, Banswara, in the Rajasthan district of India, in collaboration with the Nuclear Power Corporation of India Limited. The project will have a capacity of 2.8 gigawatts and an investment of roughly ₹50,000 crore.

Other than these, NTPC is also studying other prospective sites in the states of Gujarat, Tamil Nadu, Chhattisgarh, Odisha, and Karnataka for setting up nuclear power plants. As mentioned above, its objective is to build nuclear capacity so that base-load power could be delivered, which means the minimum level of demand on an electrical grid over a span of time. This will help ensure stable and perennial power supply.

Small Modular Reactors: A New Frontier 

But the most exciting thing about its nuclear expansion plans is its interest in SMRs. Well, SMRs are just the latest innovation in the nuclear field. They are of a smaller capacity, ranging from 30 MW to 300 MW, with several advantages compared to traditional nuclear power plants. They are cheaper to build, can be factory-made, and then sent to a site to be installed, making them faster to put into use. The SMRs provide greater flexibility when selecting a site and, as stated above, require less space than conventional nuclear plants.

In the recent budget speech, Finance Minister Nirmala Sitharaman enunciated the pivotal role of SMRs, and now, with a revamped nuclear policy in place, NTPC is also keen on its involvement in such technology. On its part, an investment by NTPC in SMRs may at long last make atomic power more competitive against other sources of energy by bringing down the high costs involved in nuclear power.

Financial Considerations

Setting up a nuclear power plant is a capital-intensive affair. NTPC has pegged the capital expenditure of its Rajasthan nuclear project at ₹17 crore to ₹18 crore per megawatt. Gestation period is one of the most important factors that determines the overall cost of a nuclear power plant. Gestation period means the time between starting construction work and when the plant starts generating electricity.

The upfront costs of setting up a plant are high, but the prices of nuclear power would be competitive in the long run. According to NTPC CMD Gurdeep Singh, this price could be about ₹7 per unit, a very competitive rate compared to any other kind of power generation in the country. Not even at this cost does NTPC seem to be satisfied, as it is mulling further reductions—maybe with the help of some policy incentives or subsidies.

Challenges and Opportunities

Even though NTPC has certain bold nuclear ambitions, there are definitely challenges associated with these plans. The regulatory environment is highly complex, and several approvals are needed to build nuclear power plants apart from public concerns over safety. This long gestation period of nuclear projects also will prove greatly draggy in terms of returns on investment.

The rewards, however, could be huge. If executed effectively, NTPC's expansion into nuclear can arguably lead it toward leadership in India's low-carbon economy transition. This would also assist in ensuring India's energy security through a reliable and continuous flow of power, which would be free from imported fossil fuels.

Conclusion

NTPC forays into nuclear to mark a tectonic shift in India's energy landscape. Building atomic power not only helps NTPC improve its basket of energy mix but also contributes to India's overall goals: mitigating carbon emissions and paving the way toward national energy security. With great ambitions to raise a number of atomic power plants across the country, including novel Small Modular Reactors, NTPC places itself at the forefront of India's transition toward clean energy. Despite the challenges, the potential benefits from NTPC's nuclear expansion are huge; this could prove to be the game changer for India's energy sector.

By Palak Srivastava