Small Modular Reactors (SMRs) are becoming pivotal in the global energy transition, with India’s ambitions to enter the SMR manufacturing value chain showing early promise. Several private players have expressed interest in deploying SMRs at their captive sites, although due to the sensitive nature of the discussions, specific names have not yet been disclosed.
SMRs, with capacities ranging from 30 MWe to 300 MWe, are increasingly being recognized as vital for keeping nuclear energy commercially viable. India is pushing for a leadership role in this niche technology, both to meet its clean energy goals and to position SMRs as a key part of its foreign policy and technology-driven diplomacy.
This initiative comes as leading SMR nations, Russia and China, face challenges in expanding their operations beyond their regions. Given the role SMRs are expected to play in global energy transition strategies, Russia is reportedly eager to collaborate with India on SMR development. Detailed technical discussions are underway to assess the feasibility and practicality of deploying SMRs in India, with the government considering the possibility of involving private sector players and startups under the framework of the Atomic Energy Act, 1962.
Compared to traditional nuclear reactors, which typically generate around three times more power, SMRs provide a flexible base-load power solution that can balance the intermittent nature of renewable energy sources. This is significant because SMRs, when combined, can generate substantial electricity while offering carbon-neutral alternatives to thermal generation.
While India’s nuclear program has progressed toward larger reactors, such as the 700 MWe Pressurized Heavy Water Reactors (PHWRs), the country’s experience with smaller reactors provides an advantage in the SMR space. These smaller reactors are particularly suitable for nations with mid-sized grids or decentralized operations.
The push for SMRs, which has been on India’s policy agenda for over a decade, is gaining momentum and could receive support from countries like the United States, especially in financing and technology dissemination. Although SMRs have not yet become a widely commercialized option, India is promoting them as a potential solution for industrial decarbonization and is positioning itself as a leader in this field.
Currently, only two SMR projects are operational globally. Russia’s Akademik Lomonosov floating power unit, with two 35 MWe modules, began commercial operations in May 2020. China’s HTR-PM demonstration project, grid-connected in December 2021, started commercial operations in December 2023. India aims to position itself as a credible alternative in this growing field, leveraging its experience in operating small reactors and its cost-effective manufacturing capabilities.
The global nuclear power sector is experiencing a decline, with its share of power generation reaching its lowest point in nearly 40 years, largely due to policy shifts, economic concerns, safety issues, and the rapid rise of renewable energy. Countries like the United States, France, Germany, and Belgium are downsizing their nuclear power industries, with several reactors shutting down in recent years. According to the World Nuclear Industry Status Report, global nuclear power generation hit a low in 2022, with a pronounced drop outside of China, marking the sharpest decline since the Fukushima disaster in 2012.
SMRs are designed for greater safety and efficiency, with their components manufactured in controlled factory environments and transported to project sites for quick installation. This reduces construction time and project costs, which have been major concerns with traditional large reactors. Additionally, SMRs have smaller emergency planning zones and passive safety systems, making them safer and easier to deploy, particularly at locations unsuitable for large reactors. They may also be used to repurpose decommissioned fossil-fuel power plants. While the initial capital investment per SMR is lower, the cost per MW may be higher than for large reactors, though this is expected to improve as more units are built, according to a May 2023 NITI report.
India’s push into the SMR market, supported by its strong track record and strategic positioning, could help it become a major player in the global nuclear power landscape.