Why in news
- The passage of the Shanti Act has opened India's nuclear power generation sector to private developers while addressing long-standing liability concerns.
- The Centre updated regulatory mechanisms under energy laws to mandate nuclear power procurement through statutory purchase obligations.
Information
- The Shanti Act enables private sector participation in civil nuclear power generation, aiming to help achieve India's target of 100 GW nuclear capacity by 2047.
- The law addresses developer concerns regarding supplier liability limits and accident risks that previously deterred private investment in nuclear projects.
- To ensure market demand and project bankability, nuclear power has been incorporated into renewable consumption obligations under the Energy Conservation Act.
- Power distribution companies are required to execute long-term power purchase agreements with producers, while captive industrial plants offer supplementary off-take avenues.
- High capital costs and competing cheap solar power necessitate fiscal support and long-term tariffs to keep nuclear power economically viable.
Key terms
Renewable Consumption Obligation
A statutory mandate requiring power distribution companies and bulk consumers to procure a minimum percentage of electricity from non-fossil sources.
Power Purchase Agreement
A long-term legal contract between an electricity generator and a purchaser specifying terms for power supply and pricing.
Prelims facts
- Private entry into nuclear energy requires legislative modification to nuclear liability and safety regulation frameworks.
- Energy consumption obligations are notified under the Energy Conservation Act.
Mains discussion
- Analyze the financial and regulatory hurdles hindering private sector entry into India's civil nuclear power sector.
- Examine how integrating nuclear energy into renewable obligations affects discom financial stability and tariff structures.
Source: LiveMint