Union Finance Minister Nirmala Sitharaman addresses a post-Budget press conference, in New Delhi, Tuesday, July 23, 2024.
Credit: PTI Photo
New Delhi: India's energy transition plan will focus on developing small modular nuclear reactors, pumped-storage projects and more efficient thermal plants, the government announced on Tuesday.
Presenting the 2024-25 Budget in the Lok Sabha, Union Finance Minister Nirmala Sitharaman said the government will collaborate with private firms to develop small modular reactors (SMRs) and conduct research on advanced technologies to boost the share of nuclear power in India's energy mix.
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Sitharaman also said a roadmap will be prepared to shift "hard to abate" industries, such as shipping, aviation, iron and steel, and chemicals, from focusing on energy-efficiency targets to emission targets.
To balance employment, growth and environmental sustainability, the government will release a policy document outlining appropriate energy-transition pathways. A taxonomy for climate finance will be developed to enhance the availability of capital for climate adaptation and mitigation, Sitharaman said.
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"Nuclear energy is expected to form a very significant part of the energy mix for Viksit Bharat. Towards that pursuit, our government will partner with the private sector for setting up Bharat small reactors, research and development of Bharat small modular reactors, and research and development of newer technologies for nuclear energy," she said.
SMRs are smaller, compact nuclear power plants (300 MWe or less) compared to current-generation base load plants (1,000 MWe or higher). These factory-fabricated reactors can be transported by trucks or rail to a nuclear power site and their output can be scaled by combining several units to achieve larger capacities.
Chief Economic Advisor V Anantha Nageswaran noted in the economic survey that the combined deployment of factory-manufactured, made-in-India SMRs, along with standardised 700-MWe pressurised heavy water reactors (PHWRs), could be an effective strategy for rapidly scaling up nuclear power capacity in India.
The interim budget's research and development funding will also support this sector, Sitharaman said.
A policy promoting pumped-storage projects will be introduced to store electricity and facilitate the integration of the growing share of renewable energy with its variable and intermittent nature, she added.
A pumped-storage project involves two reservoirs, one on top of a hill and another at the bottom. Excess electricity is used to pump water uphill to the upper reservoir. When electricity demand spikes, the water is released to the lower reservoir through a turbine, generating power. This system is particularly significant given the unpredictable nature of solar and wind energy.
Sitharaman also announced that the development of indigenous technology for advanced ultra super critical (AUSC) thermal power plants, which offer much higher efficiency, has been completed. A joint venture between the National Thermal Power Corporation (NTPC) and Bharat Heavy Electricals Limited (BHEL) will set up a full-scale 800-MW commercial plant using AUSC technology, with the government providing the necessary fiscal support.
The finance minister said developing indigenous capacity for producing high-grade steel and other advanced metallurgy materials for these plants will yield substantial economic benefits.
To transition "hard to abate" industries from the current "Perform, Achieve and Trade" mode to the "Indian Carbon Market" mode, appropriate regulations will be established.
An investment-grade energy audit of traditional micro and small industries in 60 clusters, including brass and ceramic, will be facilitated. Financial support will be provided to transition these industries to cleaner energy forms and implement energy-efficiency measures. This scheme will be replicated in another 100 clusters in the next phase.
Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.