Last month, Google revealed that they signed a corporate agreement with Kairos Power to purchase nuclear energy from multiple small modular reactors (SMRs) that are being developed by the company.
Meanwhile, Amazon says that they are investing $500 million in Maryland-based X-Energy which is building small modular nuclear reactors in Washington. Microsoft, on the other hand, signed a deal with Constellation Energy to enable the restart of an 835MW Pennsylvania-based nuclear facility which was retired in 2019 in a bid to go “carbon-free”.
SMRs are nuclear reactors built from prefabricated items which can be assembled in a cheaper, faster manner vis-a-vis a conventional nuclear reactor.
How does a nuclear reactor work?
Nuclear reactors produce electricity by harnessing the heat produced during a nuclear fission reaction. Uranium atoms split producing heat which turns water (used as coolant) into steam. This steam is used to drive turbines, which produce electricity.
While conventional nuclear reactors use low-enriched uranium rods (3-5% Uranium 235) as fuel, SMRs use high-assay low-enriched uranium (HALEU) with a 10-20% uranium-235.
Concerns over small modular reactors
While SMRs are cost-effective, there are concerns over their efficiency and waste management. In a research article published in 2002, authors Allison Macfarlane, Lindsay Krall & Rodney Ewing say, “SMRs will produce more voluminous and chemically/physically reactive waste than light water reactors (LWRs), which will impact options for the management and disposal of this waste. The intrinsically higher neutron leakage associated with SMRs suggests that most designs are inferior to LWRs with respect to the generation, management, and final disposal of key radionuclides in nuclear waste.”
India and nuclear power
For its electricity needs, India is largely dependent on coal & nuclear energy is our 5th largest source. However, it contributes to <2% of the total electricity generated.
As per the Atomic Energy Regulatory Board, India has 22 operating reactors, with an installed capacity of 6780 MW of which 18 are Pressurised Heavy Water Reactors and four are Light Water Reactors.
As per the Department of Atomic Energy, nuclear power is the cheapest source of energy produced, Tarapur Atomic Power Station 1 & 2 produce electricity at 92 paise per unit while Kudankulam nuclear power unit -1 sells at over ₹3 per unit. Union Minister Jitendra Singh told Rajya Sabha that the present installed nuclear power capacity is set to triple and increase from 8180 MW to 22480 MW by 2031-32.
With a rising population and growing demand for electricity from households and industries, especially the IT sector, the government is looking at nuclear power generation as a viable and cheaper option.
Should India open nuclear power generation to private players?
India’s nuclear energy sector is regulated by state-owned entities like NPCIL holding exclusive rights over nuclear power generation. While amendments to the Atomic Energy Act in 2015 allow private companies to supply equipment, ownership of reactors remains restricted.
Opening the sector would require legislative changes to the Act and adjustments to the Civil Liability for Nuclear Damage Act (CLNDA), which places absolute liability on operators, deterring private firms from investment due to high insurance risks.
However, a recent Reuters report suggests that the government is actively encouraging private-sector investment. Talks are reportedly underway with major Indian companies, including Reliance Industries, Tata Power, Adani Power, and Vedanta, to invest approximately $5.3 billion each in developing nuclear power projects under a hybrid model. This model would involve public-private partnerships but is still pending approval from the Department of Atomic Energy.
For private participation to succeed, India’s regulatory environment would need to balance investor interest with strong liability safeguards. Reform could help build confidence among private players while ensuring the sector’s safety, accountability, and alignment with national interests.
