Private players seek ‘green energy’ status for N-power to raise funds

Private players are seeking green energy status for nuclear power to enable access to green bonds, green loans and blended financing for nuclear projects. During a stakeholder consultation by NITI Aayog, they also sought review of existing green finance frameworks, including the Ministry of Finance’s Sovereign Green Bond Framework, the RBI’s framework for acceptance of green deposits and SEBI’s framework for green debt securities.

“Currently for example Ministry of Finance sovereign green bond framework does not include the nuclear energy and there was a suggestion from many of the industry participants to review these frameworks…..whether it is the Ministry of Finance sovereign green energy bond framework or RBI’s framework for acceptance of green deposits or even SEBI’s green debt securities framework.

So I think there is a need for review of these frameworks to allow access to green bonds and green loans and blended financing schemes,” Abhay Karandikar, member NITI Aayog said during the inaugural session of POWERGEN India’s Nuclear X event.

“The world over I think even including the World Bank and the Asian Development Bank are reviewing these restrictions on the nuclear investments and similar things perhaps I think may be needed,” he added. Private players also suggested that nuclear power projects be accorded infrastructure status, he said, while adding that in NITI Aayog’s view nuclear power is already covered under the infrastructure framework, as the Harmonised Master List of Infrastructure Sub-sectors maintained by the Department of Economic Affairs includes electricity generation.

“Perhaps a clarification in this regard may be needed,” he added. Around 150 participants from 60 organisations took part in the NITI Ayog’s consultation. India opened the tightly regulated civil nuclear sector last year for private participation and targets 100 gigawatt-electric (GWe) nuclear power by 2047.

Speaking at the event, Nivruti Rai, MD and CEO of Invest India, said India will require at least 228 billion dollars to achieve the target 100 GWe nuclear energy capacity. Speaking at the event, Ghanshyam Prasad, Chairperson of the Central Electricity Authority (CEA), said the final rules under the SHANTI Act are likely to be ready in the next two to three months, with stakeholder consultations on the draft rules currently underway.

He also stressed the need to reduce the gestation period of nuclear power projects in India. Prasad said site selection would be another major challenge as India scales up its nuclear capacity. “A lot of efforts are supposed to be made in identification of sites.

We are all working with the states. Teams are there, site selection committees are there,” he said. On nuclear fuel, Prasad stressed the need to develop thorium-based technologies to strengthen India’s long-term energy security.

“I always suggest that we try to develop those technologies which are in and around thorium-based so that at least we don’t face nuclear security as a question mark going ahead in the future,” he said, adding that some small modular reactors (SMRs) are also being developed using thorium-based technology.

Prasad also called for greater standardisation of nuclear reactor technologies to speed up deployment and reduce regulatory challenges.