[Answered] Critically analyze the role of Small Modular Reactors (SMRs) in making nuclear energy commercially viable. Examine how eased government restrictions can boost private sector participation.

Introduction

According to the IAEA (2023), over 80 SMR designs are under development globally, signalling a paradigm shift toward scalable, safer, and cost-efficient nuclear power vital for India’s clean energy transition and net-zero targets.

The Promise of SMRs: Redefining Nuclear Energy

Small Modular Reactors (SMRs) are advanced nuclear fission reactors with capacities typically below 300 MWe. Their modular design allows factory fabrication, rapid deployment, and scalability—addressing the high capital costs and delays of traditional large reactors.

1. Economic viability: SMRs reduce upfront costs by 30–50% compared to conventional reactors (World Nuclear Association, 2023). Their modularity supports phased investment and shorter construction timelines, improving the Levelized Cost of Electricity (LCOE).
2. Safety and technology: Passive cooling systems and underground siting enhance safety. Advanced designs like Molten Salt Reactors (MSR) and High-Temperature Gas-Cooled Reactors (HTGR) improve fuel efficiency and reduce waste.
3. Grid flexibility and decarbonization: SMRs can integrate with renewables, provide process heat for industries, and aid hydrogen production—key to India’s National Hydrogen Mission and achieving Net Zero by 2070.

SMRs in India’s Energy Landscape

India’s nuclear installed capacity is ~7.5 GW (NPCIL, 2024), only 2% of total electricity generation. Large reactors face challenges of high costs, land acquisition, and delays (e.g., Kudankulam).

1. Strategic necessity: SMRs offer potential for decentralised deployment near industrial clusters or remote regions.
2. Indigenous capability: BARC and NPCIL have initiated feasibility studies on 220 MWe SMRs, supported by the Atmanirbhar Bharat initiative.
3. Export potential: Aligning with India’s Act East and Neighbourhood First policies, SMRs can be exported to South Asia or Africa, strengthening India’s energy diplomacy.

Commercial Viability Challenges

Despite technological promise, SMRs face hurdles in cost competitiveness and regulatory adaptation:

1. Financing: Private sector is reluctant due to long gestation periods and uncertain returns.
2. Regulatory bottlenecks: India’s Atomic Energy Act, 1962 restricts nuclear operations to government entities, deterring innovation and foreign partnerships.
3. Waste management and liability: Ambiguities in the Civil Liability for Nuclear Damage Act (CLND), 2010 discourage private investment due to supplier liability risks.

Need for Eased Government Restrictions

Easing regulatory constraints can catalyse private participation and innovation:

1. Amend the Atomic Energy Act to allow joint ventures with private and foreign entities under strategic safeguards.
2. Public-Private Partnerships (PPP): Similar to the SpaceCom and Defence Corridor models, PPPs can share costs, technology, and risk.
3. Regulatory modernisation: The Atomic Energy Regulatory Board (AERB) must adopt adaptive licensing for modular technologies.
4. Financial incentives: Production-Linked Incentives (PLI) for SMR components, sovereign green bonds, and viability gap funding can de-risk investment.
5. Global collaboration: Partnerships with the US, France, and Russia through Clean Energy Ministerial (CEM) and ITER consortium can accelerate technology adoption.

International Precedents

1. USA: NuScale Power’s SMR gained NRC approval in 2022—the first globally.
2. UK & Canada: Fast-tracked licensing and fiscal incentives spurred Rolls-Royce and GE-Hitachi projects.
   India can emulate these regulatory models to enable market-led nuclear innovation.

Conclusion

As per IEA’s World Energy Outlook 2024, SMRs bridge the trilemma of energy security, affordability, and sustainability. Reforming India’s nuclear governance can unlock private innovation, securing a resilient low-carbon future.