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US-India Nuclear Cooperation and Small Modular Reactors

  • GS Paper – 2
  • GS Paper – 3
  • Nuclear Technology
  • Government Policies & Interventions
  • Effect of Policies & Politics on India’s Interests
  • Small Modular Reactor

For Prelims: Small modular reactors, Uranium, Fossil fuels, Artificial Intelligence, India-U.S. Nuclear Deal, Nuclear Non-Proliferation Treaty (NPT), International Atomic Energy Agency (IAEA).

For Mains: India’s Nuclear Energy Developments, Strategies to Boost India’s Nuclear Power Capacity.

Why in the News?

Recent reports suggest a renewed push in the US-India civil nuclear partnership, with Holtec International’s small modular reactor (SMR-300) at the centre of this collaboration.

Holtec plans to work with India to meet its growing energy needs and support clean energy initiatives by deploying small modular reactors on existing coal plant sites and pursuing joint manufacturing opportunities. This aligns with India’s clean energy transition goals.

What is the SMR-300?

About: The Small Modular Reactor -300 is an advanced pressurised light-water reactor that uses low-enriched uranium fuel to generate at least 300 megawatts of electric power via nuclear fission.

Compact Design: SMR-300 occupies less space than traditional reactors, making it suitable for repurposing India’s existing coal plant locations.

Support for Clean Energy: This technology offers a viable alternative to fossil fuels, critical to supporting India’s clean energy targets, especially as the demand rises from sectors like artificial intelligence and data centres.

India’s investment in Small Modular Reactor also aims to position it as a key player in the global nuclear market, competing with countries like Russia and China.

Challenges in Implementing SMR-300 in India:

  1. Civil Liability for Nuclear Damage Act, 2010: This law places the responsibility for accidents on nuclear equipment manufacturers, making foreign companies wary of investing in India’s nuclear sector due to potential financial risks.
  1. Export Regulations: The US Atomic Energy Act of 1954 limits American companies like Holtec from producing nuclear equipment in India, hindering local manufacturing of Small Modular Reactor components.
  2. Legislative Constraints: India’s current legal framework lacks flexibility in modifying liability laws, creating further obstacles to international collaboration.

Future Prospects for Small Modular Reactor; SMR-300 in India

Cooperation on SMR technology could strengthen US-India relations, helping address technological challenges and labour cost issues for both nations.

India-US Nuclear Deal

  • The India-US Nuclear Deal, also known as the US-India Civil Nuclear Agreement, was signed in 2008, following a 2005 joint statement by Indian Prime Minister Manmohan Singh and US President George W. Bush.
  • The agreement marked a major shift in US policy, which previously restricted nuclear trade with India due to its non-signatory status to the NPT.
  • Known as the “123 Agreement,” it allows US companies to provide nuclear fuel and technology for India’s civilian nuclear program.
  • As part of the deal, India agreed to IAEA inspections of its civilian nuclear facilities.

Benefits to India: This deal made India eligible to purchase US dual-use nuclear technologies, including uranium enrichment and plutonium reprocessing equipment, enhancing India’s energy security.

What are Small Modular Reactors (SMRs)?

About: According to the IAEA, Small Modular Reactor are advanced nuclear reactors designed for greater safety and efficiency, with power capacities ranging from below 30 MWe to over 300 MWe.

Features:

    • Small: Physically smaller than conventional reactors, they can be deployed in various locations.
    • Modular: Factory-assembled, allowing for easy transportation and installation.
    • Reactors: Use nuclear fission to generate electricity or heat for direct applications.

Global Status of SMR Technology

Over 80 SMR designs are in various stages of development worldwide, with some already operational. Small Modular Reactors are categorised into:

  1. Land-Based Water-Cooled SMRs: Utilizing technologies like pressurized and boiling water reactors.
  2. Marine-Based Water-Cooled SMRs: Deployed in marine environments, such as floating units.
  3. High-Temperature Gas-Cooled SMRs (HTGRs): Capable of generating high heat for industrial applications.
  4. Liquid Metal-Cooled Fast Neutron Spectrum SMRs (LMFRs): Employ fast neutron technology.
  5. Molten Salt Reactor SMRs (MSRs): Use molten salts for cooling and long fuel cycles.
  6. Microreactors (MRs): Ultra-small reactors, generating power up to 10 MWe.

Note:

Two SMR projects are currently operational:

  1. Russia’s Akademik Lomonosov floating power unit
  2. China’s HTGR pebble-bed reactor.

Benefits and Challenges of Small Modular Reactor

Benefits of SMRs

Challenges Associated with SMRs

Scalable to meet various power needs.

Regulatory complexities across diverse SMR designs.

Longer refueling intervals (3-7 years).

Supply chain issues and technology readiness gaps.

Passive safety features for self-shutdown.

Radioactive waste management and disposal concerns.

Can integrate with renewable energy systems.

Lack of experience and public opposition to nuclear innovations.

Challenges in India’s SMR Development Aspirations

  • Technological Disparities: India’s nuclear technology, which relies heavily on heavy water and natural uranium, is increasingly outpaced by global advancements in light water reactors.
    • Transitioning to a Small Modular Reactor will require significant technical adaptation.
  • High External Costs: Small Modular Reactors, while designed for economic efficiency, come with high costs for safety measures and spent fuel management, complicating their financial feasibility.
  • Regulatory Hurdles: India’s current regulations cater to large reactors, and updating these frameworks for SMR-specific requirements is essential.
  • Public Perception and Safety Concerns: Public unfamiliarity with SMRs might lead to opposition, rooted in fears of nuclear disasters like Chernobyl.
  • Human Resource Development: India lacks a skilled workforce trained in SMR operations, which is necessary for long-term success.

Way Forward

  • India should build Small Modular Reactor prototypes to validate design and reliability, aiming for operational units by the early 2030s to accelerate its clean energy transition.
    • Review and update existing nuclear regulations to address Small Modular Reactor innovations and ensure safety standards.
  • Create financing models to attract private investment and mitigate project risks.
  • Address skill gaps by implementing training programs through institutions like BARC.
  • Develop strategies to strengthen nuclear supply chains and integrate safeguards with global bodies like the IAEA to manage non-proliferation concerns.

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