Energy is the driver of development and nuclear energy is an essential option to satisfy the future energy needs. India’s nuclear power industry is going through a period of growth. One of the key drivers of this growth story is government’s initiatives in increasing the share of nuclear power in its energy mix and India. At present, India’s nuclear power capacity is over 5,780 MW. The country aims to produce 10,080 MW by 2017 using pressurised heavy water reactors (PHWR), plutonium fast breeder, thorium reactors and imported reactors, all of which pose no threat of radiation. The next objectives are to produce 27,480MW by 2024 and 63,000MW by 2052 using nuclear energy. It also aims to supply 25% of electricity from nuclear power by 2050.

India’s energy consumption has been growing thanks to the higher GDP growth since 1990s. According to the ministry of statistics and programme implementation (MoSPI, energy consumption has increased by 10.45% in 2011-12, much faster than the GDP growth of 6.2%. In fact, the energy consumption has been growing faster than the economy for the last three decades. The CAGR increase in energy consumption was 5.96% since 1970-71 compared to GDP increase of 5.65%.

The ongoing surge in nuclear power is a direct payoff of the India-US Civil Nuclear Agreement. The most publicized aspect of this deal is the four power plants that India hopes to build with foreign collaboration. Progress has been slow, leading some observers to write off the deal. The nuclear deal has already delivered clear, tangible gains for India, and will continue to do so in the coming years.
Nuclear power plants account for 3.5% of India’s current electricity generation, and its share in India’s future electricity generation will be less than 10% even if the installed capacity is tripled. However, along with other sources of energy such as hydropower and solar-power, it will play a role in reducing India’s reliance on coal for generating electricity.

While progress on power reactors with foreign collaboration has been slow, India’s indigenous reactor program is going along just fine. Four of the reactors are under construction: two each at Kakrapar and RAPP (Rajasthan) are indigenously designed 700 mw reactors. Work on another pair is expected to start in mid-2015 in Haryana, and six more are planned at three sites. These indigenously designed reactors appear set to be the workhorses of Indian nuclear program.

Currently fossil fuels account for majority of the power generated in India. However, the Indian Government aims to reduce the share of fossil fuel in the overall energy mix. As of now, nuclear power accounts for just 3% of the total power generated in the country. While renewable energy sources also aim to increase the share in the overall energy mix, nuclear power is high on the priorities of the Indian Government. Overall we find good scope for nuclear power in India in the near future.