SMRs as an Area of Strategic Interest for India and Scope for India-US Collaboration
Context:
India views Small Modular Reactors (SMRs) as strategically important, with President-elect Trump also interested. SMRs offer India a flexible, safer nuclear energy option. This aligns with Trump’s “America First” approach, potentially boosting U.S. exports and strengthening India-U.S. energy and trade ties.
India’s view on SMRs as area of Strategic Interest:
- Importance in clean energy transition: India is increasingly positioning Small Modular Reactors (SMRs) as a crucial area of strategic interest in its clean energy transition and foreign policy.
- SMR promoting closer India- USA ties: SMRs presents an opportunity for India to advance its energy security while fostering closer ties with global powers like the United States.
- Benefits of SMR for India: For the US, collaboration with India on SMRs offers an opportunity to expand its nuclear technology exports while balancing out its own technological and economic constraints, including labour costs and protectionist sentiments.
- SMR’s as a cleaner fuel: The need to diversify its energy mix and reduce dependence on fossil fuels makes SMRs a viable option for India, as they can provide cleaner, more flexible power generation solutions.
Trump’s Support for SMRs as a Nuclear Power Solution:
In a pre-election podcast with Joe Rogan, he highlighted the advantages of SMRs, emphasising their modular nature, which allows them to be factory-built, reducing construction time and cost overruns.
- SMRs as a Scalable and Manageable Energy Source: Trump believes that SMRs offer a scalable, more manageable approach to nuclear power generation. Unlike traditional nuclear reactors, which often face prolonged construction periods and budget issues, SMRs present a more efficient and cost-effective option for clean energy production.
- Strategic Opportunity for India: Adopting SMRs could streamline India’s nuclear infrastructure development while aligning with its economic and environmental goals, providing a cleaner energy source with fewer financial and logistical challenges.
About SMRs, Their Types, and Advantages Over Traditional Large Nuclear Reactors:
Small Modular Reactors (SMRs) are nuclear reactors with a capacity of 30 MWe to 300 MWe per unit, designed to be more compact, scalable, and cost-effective than traditional large nuclear reactors. There are several types of SMRs based on the coolant used to manage the extreme heat produced in nuclear fission reactions:
- Light Water Reactors (LWRs): The most common type, similar to conventional nuclear power plants, but smaller and more compact. These reactors use water as both the coolant and the moderator.
- High-Temperature Gas Reactors (HTGRs): Uses helium gas as a coolant, offering higher temperature operation.
- Liquid Metal Reactors (LMRs): Utilises liquid metals, such as sodium or lead, for efficient heat transfer.
- Molten Salt Reactors (MSRs): Use molten salt as a coolant and fuel, potentially offering better thermal efficiency.
LWR as most practical and easiest to design : Among these, Light Water Reactors (LWRs) are considered the most practical and easiest to design.
- Since most of today’s nuclear regulations are based on water-cooled reactors, LWRs have an advantage in terms of approval and operational familiarity.
- The modular construction of LWR-based SMRs reduces construction time and costs, while ensuring high-quality control through factory fabrication.
Need for SMRs in India:
- Meeting India’s rising power demand: India is experiencing a significant rise in power demand, driven by rapid industrial growth and technological advances, especially in sectors such as AI and data centres.
- Scalable and portability: They are scalable, can be deployed in remote areas, and provide a reliable source of baseload power, all while being more cost-effective and quicker to deploy than traditional large nuclear plants.
- Reducing reliance on fossil fuels: Furthermore, as India seeks to reduce its reliance on coal and oil, SMRs offer a clean alternative, aligning with India’s broader climate and energy goals.
How SMRs Can Solve the Nuclear Energy Challenge and Help Meet Net-Zero Goals:
SMRs can address several critical challenges facing nuclear energy:
- Nuclear Energy Challenge: Traditional nuclear reactors are large, costly, and time-consuming to build, which often leads to delays and budget overruns. SMRs, on the other hand, are smaller, factory-built, and designed for quicker deployment, making nuclear energy more accessible and reliable.
- Net-Zero Goals: The International Atomic Energy Agency (IAEA) estimates that nuclear energy must more than double by 2050 to help achieve global net-zero emissions targets. SMRs, with their low carbon footprint, provide a feasible path to meeting these goals, offering a clean, reliable, and scalable energy solution.
Challenges in Promoting SMRs in India:
- Technological Disparities: India’s nuclear program relies heavily on Pressurised Heavy Water Reactors (PHWRs), which use heavy water and natural uranium. These are outdated compared to the globally dominant light-water reactors, creating a technological gap that must be bridged.
- Legal Challenges:
- Civil Liability for Nuclear Damage Act (2010): This law assigns liability to operators and equipment suppliers in case of nuclear accidents, deterring foreign companies like GE-Hitachi and Westinghouse from investing in India.
- US Export Restrictions (10CFR810): This regulation restricts US companies from manufacturing or designing nuclear equipment in India, which hinders India’s desire to co-produce SMRs domestically.
Incentive for the US and India to Collaborate on SMRs:
- Strategic Collaboration: Both India and the US are facing challenges in competing with China in the SMR space. India has outdated reactor technology, while the US faces high labour costs and protectionist policies.
- A partnership between the two nations would allow them to pool resources and advance SMR technology, strengthening their positions in the global market.
- Economic Growth: A collaboration would encourage technological exchange, foster innovation, and attract foreign investment, boosting both countries’ nuclear sectors.
Recent SMR Promotion Cases:
- Holtec International’s Deal with India: Holtec International’s proposal to deploy its SMR-300 reactor in India offers a significant opportunity for collaboration. By using existing coal plant sites in India, Holtec’s proposal could revive the commercial potential of the US-India civil nuclear deal signed in 2008.
- Google’s Demand for Nuclear Energy: Google has expressed interest in incorporating nuclear energy into its data centres, highlighting the growing demand for clean energy solutions. This demand provides further impetus for the promotion of SMRs in India.
- Environmental Benefits: SMRs offer a low-carbon alternative to coal, which aligns with India’s climate goals and helps improve air quality by reducing dependence on fossil fuels.
Challenges to the Holtec-India Deal and India-US Collaboration:
While the collaboration holds significant potential, challenges remain:
- Legal Hurdles: The Civil Liability for Nuclear Damage Act and the US’s export restrictions under 10CFR810 pose substantial barriers to the deal’s progress.
- Technological and Regulatory Disparities: India’s technological limitations and outdated nuclear regulations need to be addressed before widespread SMR deployment can occur.
Way Forward and Conclusion: To move forward with SMRs, India needs to address regulatory challenges and work closely with the US to find legal and technological solutions. Collaborating with companies like Holtec International offers a path to advance India’s nuclear capabilities while meeting growing energy demands. India’s continued dialogue with the US, along with potential partnerships with other global players, will be key in positioning the country as a leader in the SMR sector, counterbalancing China’s growing influence in nuclear technology.
