Whither Nuclear Energy?

Context: An analysis of various factors that dampened the nuclear energy sector in India.

Various Nuclear Power Agreements in the last decade

• US- India Civilian Nuclear Agreement signed in 2005.
• The US agreed to build six nuclear reactors in India in Andhra Pradesh last year.
• India has signed a civil nuclear cooperation agreement with the European Union.

• India-Japan Agreement for Cooperation in the Peaceful Uses of Nuclear Energy entered into force in 2017.

Struggling Nuclear Power Statistics in India:

• Declining share in electricity generation capacity: from 2.9% in 2008 to 2.5% in 2020.
• Marginal rise in actual energy generation: of about 1% point in the last decade.

• Ironically, over this same period, the share of thermal energy in total electricity generation has increased by 3 percentage points.

Factors for the downfall of Nuclear Energy in India:

• Nuclear Liability Law: passed by India made the manufacturers, instead of operators, liable in case of nuclear accidents, keeping them away from Indian markets.
• Problems in governance structures:

• Less accountability of the Atomic Energy Commission and the Department of Atomic Energy (DAE), which report directly to the Prime Minister.
• Regulatory Independence is compromised since the Atomic Energy Regulatory Board reports directly to the DAE.

• Global mood turned against nuclear energy following the Fukushima Disaster.

• In India: vociferous protests from local populations have dogged projects such as the Kudankulam plant in Tamil Nadu.

• Declining economics of nuclear power: 

• The renewable energy sector, with its rising total installed capacity and falling tariffs charges, has sidelined the nuclear energy contributions.
• In contrast, the capital costs of nuclear plants are high and the fuel to remains costly.

Conclusion: Unless reforms to the regulatory and institutional structure of nuclear power in India are not carried out, the promise of the nuclear deal will not be met.