Sign In
Learn bits
Science & Tech.
Mahesh

23/03/24 09:59 AM IST

Nuclear energy: fixing the finance

In News
  • Recently,Brussels hosted the first-ever Nuclear Energy Summit, co-chaired by the Prime Minister of Belgium Alexander De Croo.
'Atoms4Netzero’ programme
  • The UN Climate Change Conference (COP28) in Dubai (UAE) in December 2023 stated the indispensable role of nuclear energy to meet climate goals.
  • The declaration signed by 22 world leaders mentioned the need to triple nuclear energy capacity by 2050.
  • The Nuclear Energy Summit, an initiative in collaboration with the IAEA’s ‘Atoms4Netzero’ programme, is part of the multilateral approach to decarbonisation.
  • Nuclear power emits four times less carbon than solar farms or other renewable sources such as wind, hydropower, and geothermal.
  • Most importantly, nuclear power has the capacity to supply uninterrupted energy irrespective of geographical constraints making it a crucial component of the wider renewable energy mix.
  • Nuclear power plants (NPP) also have low operating costs, smaller land imprint and a longer life cycle compared to all the other renewable energy sources.
Cooperative models
  • There are successful financial practices that can be replicated, for instance the cooperative funding models of France, South Korea, Russia, and the U.K. where a group of investors raise credit from the market and take full responsibility for project delivery.
  • In Finland, large power plants have been funded by multiple private companies since the 1970s using a cooperative finance model called ‘Mankala’.
  • Under this model, companies jointly own energy producers and share the costs of building and operating plants.
  • They don’t pay dividends but can buy the energy at a cost based on their ownership share, with investors being wholesalers, retailers, or large industrial firms.
  • Financial creativity and market support with low interest rates can unravel the potential of nuclear energy at scale
  • There are 440 nuclear reactors in the world, accounting for a quarter of the world’s low-carbon energy.
  • The number of nuclear reactors is increasing, with 60 reactors under construction and 110 in the planning stage, most being in Asia, particularly China, which is soon to overtake the U.S. and the nuclear giant France.
  • China has set a target to produce 10% of its electricity from nuclear energy by 2035 and 18% by 2060.
  • However, the state of nuclear infrastructure development and finance mobilisation is not proportional.
  • NuScale Power, previously expected to be the first U.S. company licensed to build a 462MW SMR in Utah, terminated its planned project due to rising costs. Nuclear powerhouses Westinghouse and Areva also filed bankruptcy due to project overruns.
India's nuclear programme
  • India’s first commercial NPP in Pahalgarh, Tarapur offers reliable energy at 2/kWh lower than solar power tariffs.
  • At Kudankulam, Tamil Nadu, a newer power plant offers electricity in the range of 4-6/kWh comparable to coal-fired thermal power plants.
  • Despite its versatile nature, nuclear power contributes only 1.6% of the total renewable energy mix in India.
  • Stigma, weaponisation risk, radiation leak, regulation, high upfront cost, and long project overruns are the reasons for low adoption rate of nuclear energy.
  • Recently, the nuclear industry has been undergoing novel liberalisation, with ambitious plans for growth in India and abroad.
  • Beginning with the invitation of $26 billion in private investments, a phase-wise tripling of nuclear capacity from 7,480 MW to 22,480 MW by 2031-2032, and Prime Minister Modi’s attendance at the core loading of the Prototype Fast Breeder Reactor (PFBR) all mark a positive future for the industry.
  • The PFBR’s ability to generate fuel and power at the same time represents a significant advancement in India’s mostly self-reliant nuclear industry.
Source- The Hindu

More Related Current Affairs View All

15 Nov

Government issues guidelines to curb misleading ads by coaching centres

'The central Government issued new guidelines aimed at curbing misleading advertisements by coaching institutes, specifically prohibiting false promises such as "100 per cent selec

Read More

15 Nov

Janjatiya Gaurav Divas

'Every year on November 15th, Janjatiya Gaurav Divas is celebrated to honor the contributions of these communities, especially in India’s freedom struggle.' 5th November

Read More

15 Nov

Supreme Court’s order on mandatory accessibility standards

'A bench of the Supreme Court last week ordered the Union government to frame mandatory rules for ensuring the accessibility of public places and services to persons with disabilit

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps