24-October-2024-Special-Article

NUCLEAR ENERGY INVESTMENTS BY BIG TECH AND INDIA’S ROLE IN NUCLEAR DEVELOPMENT

Amid the rising electricity demands driven by Artificial Intelligence (AI) and data centers, major tech companies are turning to nuclear energy for its reliable, carbon-free power.

By investing in nuclear energy, these companies aim to meet their sustainability goals while supporting AI’s intensive energy needs.

Which Big Tech Companies are Investing in Nuclear Energy?

Google:

• Google has partnered with Kairos Power to use Small Modular Reactors (SMRs) for 500 MW of carbon-free power dedicated to AI development.

Microsoft:

• Microsoft entered a 20-year agreement with Constellation Energy to reopen the Three Mile Island nuclear plant, aiming to supply around 835 MW of carbon-free energy, supporting Microsoft’s goal of becoming carbon negative.

Amazon:

Amazon has established partnerships to expand its nuclear energy usage:

• Collaborating with Energy Northwest for SMR development in Washington.
• Investing in SMR technology with X-energy.
• Partnering with Dominion Energy in Virginia.

OpenAI:

• OpenAI’s CEO, Sam Altman, supports nuclear startup Oklo, targeting operational status by 2027, and has invested in Helion, a nuclear fusion company, since 2021.

Why Are Big Tech Companies Turning to Nuclear Energy?

Growing Energy Needs for AI:

• According to the Electric Power Research Institute (EPRI), data centers, especially those used in AI, may consume up to 9% of the U.S.’s electricity by 2030.

Limitations of Renewable Energy:

• Nuclear energy provides uninterrupted, carbon-free power, unlike solar and wind, which are intermittent.

Sustainability Goals:

• Tech companies aim to reduce carbon emissions; for instance, Google reported a 13% increase in greenhouse gas emissions in 2023, underscoring the challenge of balancing growth with sustainability.

Strategic Partnerships:

• Long-term partnerships, like Microsoft’s deal with Constellation Energy for Three Mile Island, secure reliable energy sources as energy demands increase.

Economic Advantage:

• By investing in nuclear energy early, tech companies secure a stable power source, which could be advantageous as global competition for energy intensifies.

Climate Change:

• Climate change and energy reliability concerns make nuclear power a valuable investment, helping companies support their carbon reduction goals.

The Status of Nuclear Energy in India

• Expansion Goals: India targets a threefold increase in nuclear capacity, aiming for 22,480 MW by 2032, with nuclear sources providing 25% of electricity by 2050.
• Investment Plans: The Rural Electrification Corporation (REC) plans to allocate ₹6 trillion for renewable and nuclear projects by 2030.
• Public-Private Collaborations: NTPC and NPCIL have partnered to form Anushakti Vidhyut Nigam, which will focus on building and operating nuclear power plants.
• Future Projects: India plans to construct 10 new nuclear reactors and is exploring SMRs through collaborations with private firms to advance nuclear technology.

What Are Small Modular Reactors (SMRs)?

SMRs are advanced nuclear reactors, roughly one-third the size of traditional reactors, designed for flexible installation and use.

Characteristics:

• Small Size (S): Can produce up to 300 MW of electricity.
• Modular Design (M): Prefabricated components allow for easier assembly on-site.
• Nuclear Power (R): Uses fission to produce low-carbon energy.

Benefits:

• Space Efficiency: SMRs can be placed in areas unsuitable for larger plants.
• Cost and Time Efficiency: Prefabrication and modular construction reduce costs and build times.
• Off-Grid Potential: Smaller SMRs, including microreactors (up to 10 MW), can supply power to remote areas.
• Extended Refueling Intervals: Some SMRs require refueling only every 3–7 years, with certain designs lasting up to 30 years without refueling.

Global Adoption:

• Russia’s floating SMR, Akademik Lomonosov, began operations in 2020.
• India plans to introduce SMRs, called Bharat Small Modular Reactors, for replacing thermal power plants.
• Nations including Argentina, Canada, China, South Korea, and the United States are advancing SMR (Small Modular Reactor) technology, with more than 80 designs intended for diverse uses like power generation and water applications.

Challenges:

• Despite lower capital costs per unit, SMRs need further testing in real-world deployments to prove their economic competitiveness.

Benefits of Nuclear Energy

• Low-Carbon Power: Nuclear energy provides continuous, weather-independent power, making it ideal for meeting large-scale energy demands sustainably.
• Small Land Usage: A typical 1,000 MW nuclear plant requires only one square mile, compared to wind farms and solar installations that need 360 and 75 times more land, respectively.
• High Energy Output: Nuclear power plants operate at maximum capacity approximately 93% of the time, providing consistent energy output.
• Minimal Waste Production: Nuclear energy generates less waste compared to other sources. Advanced reactor designs may further reduce waste by reusing fuel.

Concerns Related to Nuclear Energy

• Carbon Emissions in Supporting Processes: While nuclear reactors do not emit CO₂ during operation, mining, refining uranium, and plant construction rely on fossil fuels, contributing to emissions.
• Public Perception and Security Concerns: Nuclear energy is often associated with nuclear weapons, raising fears of misuse and security risks.
• Safety Issues: Accidents at Three Mile Island (1979), Chernobyl (1986), and Fukushima (2011) have heightened concerns about nuclear safety, affecting public perception.
• Environmental Criticism: Environmental organizations, such as Friends of the Earth, raise concerns about the potential for accidents, radioactive waste, and environmental harm from nuclear energy.
• High Initial Costs: The construction and operational costs of nuclear plants are high, posing financial challenges compared to alternatives.

Way Forward

• Enhanced Safety Measures: Implement advanced reactor designs, such as Generation IV reactors and SMRs, prioritizing safety and efficiency.
• Improved Waste Management: Invest in effective waste solutions, such as deep geological storage, successfully used in Finland, to manage nuclear byproducts safely.
• Renewable Integration: Position nuclear power as a supplement to renewable sources to ensure reliable energy supply and grid stability.
• Strengthened Regulations: Establish strict regulatory frameworks and international safety standards to boost public confidence in nuclear technology.

Conclusion

As tech companies invest in nuclear energy to meet rising AI-driven power demands, nuclear technology is gaining global interest as a sustainable, reliable energy source. India’s progress in nuclear energy development reflects a commitment to cleaner power, though overcoming public concerns and regulatory challenges will be essential for widespread adoptio

Mains Question:

1. “Discuss the role of nuclear energy in meeting the growing energy demands of the technology sector, with a focus on India’s initiatives and global advancements in Small Modular Reactors (SMRs).” (150 WORDS)