Key facts
- India is urging states to expedite approvals for nuclear power plants and renewable energy storage systems.
- The push is to meet the significant power and water needs of growing data and AI centers.
- Clearances are pending for 32 nuclear plant sites across 15 states/UTs.
- Battery energy storage system projects are delayed in four states, including Maharashtra, Uttar Pradesh, Madhya Pradesh, and Telangana.
- India has an ambitious target to increase its nuclear power capacity to 100 GW from the current 8.78 GW.
India is accelerating approvals for nuclear power plants and energy storage systems to support the nation's burgeoning data and artificial intelligence centers. The central government has urged states to expedite clearances for proposed projects, highlighting the critical need for a robust energy supply to meet future power demands and enhance energy security.
At the recent 11th Governing Council meeting of Niti Aayog, it was pointed out that nearly 15 states and Union Territories require accelerated action. Prior to the meeting, states were reminded of pending approvals for nuclear plants and battery energy storage systems (BESS). National Thermal Power Corporation (NTPC) has identified 32 sites for nuclear plants, but land allocation and other clearances are pending in most cases. Clearances are pending in states like Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Bihar, Odisha, Chhattisgarh, Karnataka, Tamil Nadu, Jharkhand, and Dadra & Nagar Haveli.
While some states have initiated processes, 'accelerated' action has been requested. For example, Bihar has cleared a feasibility study and water allocation plan for two 700 MW plants, and Jharkhand is conducting a feasibility study for a 700MW*2 power plant in Deoghar. Discussions have also occurred with Karnataka and Tamil Nadu governments regarding land availability around proposed sites.
Significant focus is also placed on scaling up renewable energy (RE) and addressing its intermittency through Battery Energy Storage Systems (BESS). The Centre noted that Maharashtra, Uttar Pradesh, Madhya Pradesh, and Telangana have not yet completed their BESS projects. The 13.85 GW Battery Energy Storage System 2023, supported by 40% Viability Gap Funding, is still pending completion.
This strong energy push aligns with India's plan to establish numerous data and AI centers, which require substantial power and water. Projections indicate that power demand driven by data and AI centers will rise from the current 1.8 GW to 18 GW by 2032. India's strategy involves a mix of nuclear and RE power, with an ambitious target of 100 GW nuclear capacity by 2032, up from the current 8.78 GW. Nuclear Power Corporation of India Limited (NPCIL) aims for 22 GW by 2032, while NTPC targets 30 GW by 2047. A joint venture, ASHVINI, will manage fleet mode projects in Rajasthan.
NTPC has agreements with EDF (France), HOLTEC (USA), and ROSATOM (Russia) for nuclear plant development. Additionally, a 250 MW Bharat Small Modular Reactor is being developed at the Bhabha Atomic Research Centre for smaller industrial captive power needs. India has already increased its non-fossil-based power generation to 53% from 40% in the last five years and has added 2.1 GW of BESS and 7.2 GW of Pumped Storage Plants to enhance RE penetration.