India's Nuclear Gamble: Capital Needed, But Regulation is Key
Overview
India aims for 100 GW nuclear power by 2047, passing a bill to attract private and foreign investment. While capital is crucial for the $217 billion build-out, experts warn that robust, independent regulation is paramount to avoid potential disasters and ensure sustainable growth in the sector. The new law aims to align with global liability norms, but effective oversight remains the critical next step.
India's Ambitious Nuclear Energy Push
New Delhi is embarking on a significant expansion of its nuclear power capacity, setting a target of 100 gigawatts by 2047, the nation's 100th anniversary of independence. This goal represents a massive leap from the current capacity of less than nine gigawatts, aiming to establish one of the world's largest nuclear fleets. The ambitious plan requires an estimated $217 billion in investment, a figure that domestic capital alone cannot meet, necessitating substantial foreign involvement.
Private Sector Enters the Fray
Parliament recently passed legislation designed to facilitate this expansion by opening the sector to private and foreign companies. This marks a departure from the de facto state monopoly that has previously characterized nuclear power development. The new bill also aligns India's legal framework with international norms, particularly concerning liability. This change is crucial, moving away from a system that previously deterred investors by making them potentially liable for accidents, a legacy influenced by the 1984 Bhopal disaster.
The Capital and Regulatory Challenge
Companies like Adani Group have already expressed interest, signaling a potential shift in how India generates its power. However, the sheer scale of the investment needed means that capital is only one piece of the puzzle. The article emphasizes that effective, independent regulation is equally vital. Historically, India has a tendency to build sectors first and regulate them later, a model considered potentially disastrous for nuclear energy due to its inherent risks and the severity of potential accidents.
Governing the Nuclear Future
Experts caution that regulators must possess the authority to delay projects, shut down plants, and hold powerful corporate interests accountable. Building regulatory expertise and governance capacity will require significant investment itself. Without concurrent development of strong oversight alongside private capital, India's bold nuclear bet could face severe challenges, potentially jeopardizing its energy security and safety goals.
