Nuclear energy: fixing the finance

Why Nuclear Energy?

• Low Carbon Emissions: Nuclear power offers a clean energy source, emitting four times less carbon than solar or wind.
• Reliable Baseload Power: Unlike renewables dependent on weather, nuclear plants provide uninterrupted energy.
• Cost-Effectiveness: NPPs boast low operating costs and long lifespans compared to other renewables.

Challenges in Financing:

• Limited Public Funding: Multilateral Development Banks (MDBs) haven't significantly invested in nuclear projects.
• High Upfront Costs: Initial investment for nuclear plants can be substantial.

Successful Financing Models:

• Cooperative Funding: France, South Korea, Russia, and the UK use models where investors raise capital and manage project delivery.
• Mankala Model (Finland): This cooperative model allows multiple companies to co-own and share construction and operation costs.

Global Scenario:

• Global Nuclear Reactors: There are 440 operational reactors, with 60 under construction and 110 planned, primarily in Asia.
• China's Growth: China aims for 18% of its electricity from nuclear by 2060, surpassing the US and France.
• Project Delays and Cancellations: Rising costs have led to project cancellations like NuScale Power's SMR in Utah.

India's Nuclear Power Sector:

• Current Status: Nuclear power contributes only 1.6% to India's renewable energy mix despite its affordability.
• Challenges: Stigma, safety concerns, regulations, high upfront costs, and project delays hinder wider adoption.

India's Future Plans:

• Liberalization and Investment: The government seeks $26 billion in private investment for tripling nuclear capacity by 2032.
• Prototype Fast Breeder Reactor (PFBR): This reactor's ability to generate fuel and power signifies advancements in India's nuclear program.

• Agni-V Missile: India's longest-range ballistic missile (over 5,000 km) with MIRV (Multiple Independently Targetable Re-entry Vehicle) capability.
• MIRV Technology: Allows a single missile to deliver multiple warheads on separate targets, enhancing strike capability.
• Strategic Significance: Strengthens India's second-strike capability and deterrence against a potential nuclear attack, especially considering its "no-first-use" policy.
• Nuclear Triad Completion: Following the INS Arihant's successful patrol in 2018, MIRV deployment further bolsters India's nuclear triad (land, sea, air-based delivery systems).

• Escalation: This advancement might intensify the arms race with China and Pakistan, both of whom possess MIRV technology.
• Increased Costs: The constant development of sophisticated weaponry can lead to high financial burdens.