First Solar faces new challenges

Nuclear Energy Growth accelerates as nations pursue decarbonization, complement renewables, displace coal, and ensure grid reliability with firm, low-carbon baseload, benefiting from standardized builds, lower cost of capital, and learning-curve cost reductions.

Key Points

Expansion of nuclear capacity to cut CO2, complement renewables, replace coal, and stabilize grids at low-carbon cost.

✅ Complements renewables; displaces coal for faster decarbonization

✅ Cuts system costs via standardization and lower cost of capital

✅ Provides firm, low-carbon baseload and grid reliability

By Kirill Komarov, Chairman, World Nuclear Association.

As Europe and the wider world begins to wake up to the need to cut emissions, Dr Kirill Komarov argues that tackling climate change will see the use of nuclear energy grow in the coming years, not as a competitor to renewables but as a competitor to coal.

The nuclear industry keeps making headlines and spurring debates on energy policy, including the green industrial revolution agenda in several countries. With each new build project, the detractors of nuclear power crowd the bandwagon to portray renewables as an easy and cheap alternative to ‘increasingly costly’ nuclear: if solar and wind are virtually free why bother splitting atoms?

Yet, paradoxically as it may seem, if we are serious about policy response to climate change, nuclear energy is seeing an atomic energy resurgence in the coming decade or two.

Growth has already started to pick up with about 3.1 GW new capacity added in the first half of 2018 in Russia and China while, at the very least, 4GW more to be completed by the end of the year – more than doubling the capacity additions in 2017.

In 2019 new connections to the grid would exceed 10GW by a significant margin.

If nuclear is in decline, why then do China, India, Russia and other countries keep building nuclear power plants?

To begin with, the issue of cost, argued by those opposed to nuclear, is in fact largely a bogus one, which does not make a fully rounded like for like comparison.

It is true that the latest generation reactors, especially those under construction in the US and Western Europe, have encountered significant construction delays and cost overruns.

But the main, and often the only, reason for that is the ‘first-of-a-kind’ nature of those projects.

If you build something for the first time, be it nuclear, wind or solar, it is expensive. Experience shows that with series build, standardised construction economies of scale and the learning curve from multiple projects, costs come down by around one-third; and this is exactly what is already happening in some parts of the world.

Furthermore, those first-of-a-kind projects were forced to be financed 100% privately and investors had to bear all political risks. It sent the cost of capital soaring, increasing at one stroke the final electricity price by about one third.

While, according to the International Energy Agency, at 3% cost of capital rate, nuclear is the cheapest source of energy: on average 1% increase adds about US$6-7 per MWh to the final price.

When it comes to solar and wind, the truth, inconvenient for those cherishing the fantasy of a world relying 100% on renewables, is that the ‘plummeting prices’ (which, by the way, haven’t changed much over the last three years, reaching a plateau) do not factor in so-called system and balancing costs associated with the need to smooth the intermittency of renewables.

Put simply, the fact the sun doesn’t shine at night and wind doesn’t blow all the time means wind and solar generation needs to be backed up.

According to a study by the Potsdam Institute for Climate Impact Research, integration of intermittent renewables into the grid is estimated in some cases to be as expensive as power generation itself.

Delivering the highest possible renewable content means customers’ bills will have to cover: renewable generation costs, energy storage solutions, major grid updates and interconnections investment, as well as gas or coal peaking power plants or ‘peakers’, which work only from time to time when needed to back up wind and solar.

The expected cost for kWh for peakers, according to investment bank Lazard is about twice that of conventional power plants due to much lower capacity factors.

Despite exceptionally low fossil fuel prices, peaking natural gas generation had an eye-watering cost of $156-210 per MWh in 2017 while electricity storage, replacing ‘peakers’, would imply an extra cost of $186-413 per MWh.

Burning fossil fuels is cheaper but comes with a great deal of environmental concern and extensive use of coal would make net-zero emissions targets all but unattainable.

So, contrary to some claims, nuclear does not compete with renewables. Moreover, a recent study by the MIT Energy Initiative showed, most convincingly, that renewables and load following advanced nuclear are complementary.

Nuclear competes with coal. Phasing out coal is crucial to fighting climate change. Putting off decisions to build new nuclear capacities while increasing the share of intermittent renewables makes coal indispensable and extends its life.

Scientists at the Brattle group, a consultancy, argue that “since CO2 emissions persist for many years in the atmosphere, near-term emission reductions are more helpful for climate protection than later ones”.

The longer we hesitate with new nuclear build the more difficult it becomes to save the Earth.

Nuclear power accounta for about one-tenth of global electricity production, but as much as one-third of generation from low-carbon sources. 1GWe of installed nuclear capacity prevents emissions of 4-7 million metric tons of CO2 emissions per year, depending on the region.

The International Energy Agency (IEA) estimates that in order to limit the average global temperature increase to 2°C and still meet global power demand, we need to connect to the grid at least 20GW of new nuclear energy each year.

The World Nuclear Association (WNA) sets the target even higher with the total of 1,000 GWe by 2050, or about 10 GWe per year before 2020; 25 GWe per year from 2021 to 2025; and on average 33 GWe from 2026 to 2050.

Regulatory and political challenges in the West have made life for nuclear businesses in the US and in Europe's nuclear sector very difficult, driving many of them to the edge of insolvency; but in the rest of the world nuclear energy is thriving.

Nuclear vendors and utilities post healthy profits and invest heavily in next-gen nuclear innovation and expansion. The BRICS countries are leading the way, taking over the initiative in the global climate agenda. From their perspective, it’s the opposite of decline.

Dr Kirill Komarov is first deputy CEO of Russian state nuclear energy operator Rosatom and chairman of the World Nuclear Association.

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Octopus Energy US Renewables Investment signals expansion into the US clean energy market, partnering with CIP for solar and battery storage projects to decarbonize the grid, boost resilience, and scale smart grid innovation nationwide.

Key Points

Octopus Energy's first US stake in solar and battery storage with CIP to expand clean power and grid resilience.

✅ Partnership with Copenhagen Infrastructure Partners

✅ Portfolio of US solar and battery storage assets

✅ Supports decarbonization, jobs, and grid modernization

Octopus Energy, a UK-based renewable energy provider known for its innovative approach to clean energy solutions and the rapid UK offshore wind growth shaping its home market, has announced its first investment in the US renewable energy market. This strategic move marks a significant milestone in Octopus Energy's expansion into international markets and underscores its commitment to accelerating the transition towards sustainable energy practices globally.

Investment Details

Octopus Energy has partnered with Copenhagen Infrastructure Partners (CIP) to acquire a stake in a portfolio of solar and battery storage projects located across the United States. This investment reflects Octopus Energy's strategy to diversify its renewable energy portfolio and capitalize on opportunities in the rapidly growing US solar-plus-storage sector, which is attracting record investment.

Strategic Expansion

By entering the US market, Octopus Energy aims to leverage its expertise in renewable energy technologies and innovative energy solutions, as companies like Omnidian expand their global reach in project services. The partnership with CIP enables Octopus Energy to participate in large-scale renewable projects that contribute to decarbonizing the US energy grid and advancing climate goals.

Commitment to Sustainability

Octopus Energy's investment aligns with its overarching commitment to sustainability and reducing carbon emissions. The portfolio of solar and battery storage projects not only enhances energy resilience but also supports local economies through job creation and infrastructure development, bolstered by new US clean energy manufacturing initiatives nationwide.

Market Opportunities

The US renewable energy market presents vast opportunities for growth, driven by favorable regulatory policies, declining technology costs, and increasing demand for clean energy solutions, with US solar and wind growth accelerating under supportive plans. Octopus Energy's entry into this market positions the company to capitalize on these opportunities and establish a foothold in North America's evolving energy landscape.

Innovation and Impact

Octopus Energy is known for its customer-centric approach and technological innovation in energy services. By integrating smart grid technologies, digital platforms, and consumer-friendly tariffs, Octopus Energy aims to empower customers to participate in the energy transition actively.

Future Prospects

Looking ahead, Octopus Energy plans to expand its presence in the US market and explore additional opportunities in renewable energy development and energy storage, including surging US offshore wind potential in the coming years. The company's strategic investments and partnerships are poised to drive continued growth, innovation, and sustainability across global energy markets.

Conclusion

Octopus Energy's inaugural investment in US renewables underscores its strategic vision to lead the transition towards a sustainable energy future. By partnering with CIP and investing in solar and battery storage projects, Octopus Energy not only strengthens its position in the US market but also reinforces its commitment to advancing clean energy solutions worldwide. As the global energy landscape evolves, including trillion-dollar offshore wind outlook, Octopus Energy remains dedicated to driving positive environmental impact and delivering value to stakeholders through renewable energy innovation and investment.

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China Solar Grid Parity signals unsubsidized industrial and commercial PV, rooftop solar, and feed-in tariff guarantees competing with grid electricity and coal power prices, driven by cost declines, policy reform, and technology advances.

Key Points

Point where PV in China meets or beats grid electricity, enabling unsubsidized industrial and commercial solar.

✅ City-level analysis shows cheaper PV than grid in 344 cities.

✅ 22% can beat coal power prices without subsidies.

✅ Soft-cost, permitting, and finance reforms speed uptake.

Solar power has become cheaper than grid electricity across China, a development that could boost the prospects of industrial and commercial solar, according to a new study.

Projects in every city analysed by the researchers could be built today without subsidy, at lower prices than those supplied by the grid, and around a fifth could also compete with the nation’s coal electricity prices.

They say grid parity – the “tipping point” at which solar generation costs the same as electricity from the grid – represents a key stage in the expansion of renewable energy sources.

While previous studies of nations such as Germany, where solar-plus-storage costs are already undercutting conventional power, and the US have concluded that solar could achieve grid parity by 2020 in most developed countries, some have suggested China would have to wait decades.

However, the new paper published in Nature Energy concludes a combination of technological advances, cost declines and government support has helped make grid parity a reality in Chinese today.

Despite these results, grid parity may not drive a surge in the uptake of solar, a leading analyst tells Carbon Brief.

Competitive pricing

China’s solar industry has rapidly expanded from a small, rural program in the 1990s to the largest in the world, with record 2016 solar growth underscoring the trend. It is both the biggest generator of solar power and the biggest installer of solar panels.

The installed capacity of solar panels in China in 2018 amounted to more than a third of the global total, with the country accounting for half the world’s solar additions that year.

Since 2000, the Chinese government has unveiled over 100 policies supporting the PV industry, and technological progress has helped make solar power less expensive. This has led to the cost of electricity from solar power dropping, as demonstrated in the chart below.

In their paper, Prof Jinyue Yan of Sweden’s Royal Institute of Technology and his colleagues explain that this “stunning” performance has been accelerated by government subsidies, but has also seen China overinvesting in what some describe as a clean energy's dirty secret of “redundant construction and overcapacity”. The authors write:

“Recently, the Chinese government has been trying to lead the PV industry onto a more sustainable and efficient development track by tightening incentive policies with China’s 531 New Policy.”

The researchers say the subsidy cuts under this policy in 2018 were a signal that the government wanted to make the industry less dependent on state support and shift its focus from scale to quality.

This, they say, has “brought the industry to a crossroads”, with discussions taking place in China about when solar electricity generation could achieve grid parity.

In their analysis, Yan and his team examined the prospects for building industrial and commercial solar projects without state support in 344 cities across China, attempting to gauge where or whether grid parity could be achieved.

The team estimated the total lifetime price of solar energy systems in all of these cities, taking into account net costs and profits, including project investments, electricity output and trading prices.

Besides establishing that installations in every city tested could supply cheaper electricity than the grid, they also compared solar to the price of coal-generated power. They found that 22% of the cities could build solar systems capable of producing electricity at cheaper prices than coal.

Embracing solar

Declining costs of solar technology, particularly crystalline silicon modules, mean the trend in China is also playing out around the world, with offshore wind cost declines reinforcing the shift. In May, the International Renewable Energy Agency (IRENA) said that by the beginning of next year, grid parity could become the global norm for the solar industry, and shifting price dynamics in Northern Europe illustrate the market impact.

Kingsmill Bond, an energy strategist at Carbon Tracker, says this is the first in-depth study he has seen looking at city-level solar costs in China, and is encouraged by this indication of solar becoming ever-more competitive, as seen in Germany's recent solar boost during the energy crisis. He tells Carbon Brief:

“The conclusion that industrial and commercial solar is cheaper than grid electricity means that the workshop of the world can embrace solar. Without subsidy and its distorting impacts, and driven by commercial gain.”

On the other hand, Jenny Chase, head of solar analysis at BloombergNEF, says the findings revealed by Yan and his team are “fairly old news” as the competitive price of rooftop solar in China has been known about for at least a year.

She notes that this does not mean there has been a huge accompanying rollout of industrial and commercial solar, and says this is partly because of the long-term thinking required for investment to be seen as worthwhile.

The lifetime of a PV system tends to be around two decades, whereas the average lifespan of a Chinese company is only around eight years, according to Chase. Furthermore, there is an even simpler explanation, as she explains to Carbon Brief:

“There’s also the fact that companies just can’t be bothered a lot of the time – there are roofs all over Europe where solar could probably save money, but people are not jumping to do it.”

According to Chase, a “much more exciting” development came earlier this year, when the Chinese government developed a policy for “subsidy-free solar”.

This involved guaranteeing the current coal-fired power price to solar plants for 20 years, creating what is essentially a low feed-in tariff and leading to what she describes as “a lot of nice, low-risk projects”.

As for the beneficial effects of grid parity, based on how things have played out in countries where it has already been achieved, Chase says it does not necessarily mean a significant uptake of solar power will follow:

“Grid parity solar is never as popular as subsidised solar, and ironically you don’t generally have a rush to build grid parity solar because you may as well wait until next year and get cheaper solar.”

Policy proposals

In their paper, Yan and his team lay out policy changes they think would help provide an economic incentive, in combination with grid parity, to encourage the uptake of solar power systems.

Technology costs may have fallen for smaller solar projects of the type being deployed on the rooftops of businesses, but they note that the so-called “soft costs” – including installation and maintenance – tend to be “very impactful”.

Specifically, they say aspects such as financing, land acquisition and grid accommodation, which make up over half the total cost, could be cut down:

“Labour costs are not significant [in China] because of the relatively low wages of direct labour and related installation overhead. Customer acquisition has largely been achieved in China by the mature market, with customers’ familiarity with PV systems, and with the perception that PV systems are a reliable technology. However, policymakers should consider strengthening the targeted policies on the following soft costs.”

Among the measures they suggest are new financing schemes, an effort to “streamline” the complicated procedures and taxes involved, and more geographically targeted government policies, alongside innovations like peer-to-peer energy sharing that can improve utilization.

As their analysis showed the price of solar electricity had fallen further in some cities than others, the researchers recommend targeting future subsidies at the cities that are performing less well – keeping costs to a minimum while still providing support when it is most needed.

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Site C Dam Update outlines hydroelectric budget overruns, geotechnical risks, COVID-19 construction delays, BC Hydro timelines, cancellation costs, and First Nations treaty rights concerns affecting renewable energy, ratepayers, and Peace Valley impacts.

Key Points

Overview of Site C costs, delays, geotechnical risks, and concerns shaping BC Hydro hydroelectric plans.

✅ Cost to cancel estimated at least $10B

✅ Final budget now about $16B; completion pushed to 2025

✅ COVID-19 and geotechnical risks drove delays and redesigns

The cost to cancel a massive B.C. energy development project would be at least $10 billion, provincial officials revealed in an update on the future of Site C.

Thus the project will go ahead, Premier John Horgan and Energy Minister Bruce Ralston announced Friday, but with an increased budget and timeline.

Horgan and Ralston spoke at a news conference in Victoria about the findings of a status report into the hydroelectric dam project in northeastern B.C.

Peter Milburn, former deputy finance minister, finished the report earlier this year, but the findings were not initially made public.

$10B more than initial estimate
On Friday, it was announced that the project's final price tag has once again ballooned by billions of dollars.

Site C was initially estimated to cost $6 billion, and the first approved budget, back in 2014, was $8.775 billion. The budget increased to $10.8 billion in 2018.

But the latest update suggests it will cost about $16 billion in total.

And, in addition to a higher budget, the date of completion has been pushed back to 2025 – a year later than the initial target.

Among the reasons for the revisions, according to the province, is the impact of COVID-19. While officials did not get into details, there have been multiple cases of the disease publicly reported at Site C work camps.

Additionally, fewer workers were permitted on site to allow for physical distancing, and construction was scaled back.

Also cited as a cause for the increased cost were "unforeseeable" geotechnical issues at the site, which required installation of an enhanced drainage system.

Speaking to reporters Friday, the premier deflected blame.

“Managing the contract the BC Liberals signed has been difficult because it transfers the vast majority of the geotechnical risk back to BC Hydro,” said Horgan.

Former Premier Christy Clark vowed to get the project to a point of no return, and in 2017 the NDP decided to continue with the project because of the cost of cancelling it.

The Liberals now say the clean energy project should continue, but deny they shoulder any of the blame.

“Someone has to take ownership – and it's got to be government in power,” said MLA Tom Shypitka, BC Liberal critic for energy. 

There are also several reviews underway, including how to change contractor schedules to reflect delays and potential cost impacts from COVID-19, and how to keep the work environment safe during the pandemic.

A total of 17 recommendations were made in Milburn's report, all of which have been accepted by BC Hydro and the province.

Among these recommendations is a restructured project assurance board with a focus on skill-specific membership and autonomy from BC Hydro.

Cost of cancelling the project
The report looked into whether it would be better to scrap the project altogether, but the cost of cancelling it at this point would be at least $10 billion, Horgan and Ralston said.

That cost does not include replacing lost energy and capacity that Site C's electricity would have provided, according to the province.

A study conducted in 2019 suggested B.C. will need to double its electricity production by 2055, especially as drought conditions are forcing BC Hydro to adapt power generation. 

The NDP government says the cost to ratepayers of cancelling the project would be $216 a year for 10 years. Going forward will still have a cost, but instead, that payment will be split over more than 70 years, the estimated lifetime of Site C, meaning BC Hydro customers will pay about $36 more a year once the site goes live, the NDP says, even as cryptocurrency mining raises questions about electricity use.

“We will not put jobs at risk; we will not shock people's hydro bills,” said Horgan.

"Our government has taken this situation very seriously, and with the advice of independent experts guiding us, I am confident in the path forward for Site C," Ralston said.

"B.C. needs more renewable energy to bridge the electricity gap with Alberta and electrify our economy, transition away from fossil fuels and meet our climate targets."

The minister said the site is currently employing about 4,500 people.

Arguments against Site C
While there are benefits to the project, there has also been vocal opposition.

In a statement released following the announcement that the project would go ahead, the Union of B.C. Indian Chiefs suggested the decision violated the premier's commitment to a UN declaration.

"The Site C dam has never had the free, prior and informed consent of all impacted First Nations, and proceeding with the project is a clear infringement of the treaty rights of the West Moberly First Nation," the UBCIC's secretary treasurer said.

Kukpi7 Judy Wilson said the UN's Committee on the Elimination of Racial Discrimination has called for a suspension of the project until it has the consent of Indigenous peoples.

"B.C. did not even attempt to engage First Nations about the safety risks associated with the stability of the dam in the recent reviews," she said.

"It is unfathomable that such clear human rights violations are somehow OK by this government."

Chief Roland Wilson of the West Moberly First Nation said he was disappointed the province didn’t consult his and other communities prior to making this announcement. In an interview with CTV News, he said he was offered an opportunity to join a call this morning.

“We signed a treaty in 1814,” he said. “Our treaty rights are being trampled on.”

Wilson said his nation has ongoing concerns about safety issues and the plans to flood the Peace Valley. West Moberly is in a bitter court battle with the province.

At the BC Legislature, Green Party Leader Sonia Furstenau slammed the government’s decision.

“It is an astonishingly terrible business case in any circumstances, but considering that we lose the agricultural land, the biodiversity, the traditional treaty lands of Treaty 8, this is particularly catastrophic,” she told reporters.

She went on to accuse the NDP government of keeping bad news from the public. She alleged the NDP knew of serious problems before last fall’s unscheduled election, but chose not to release information.

Prior to the decision former BC Hydro president and a former federal fisheries minister are among those who added their voices to calls to halt work on the dam.

They were among 18 Canadians who wrote an open letter to the province calling for an independent team of experts to explore geotechnical problems at the site.

In the letter, signed in September, the group that also included Grand Chief Stewart Phillip of the UBCIC wrote that going ahead would be a "costly and potentially catastrophic mistake." 

According to Friday's update, independent experts have confirmed the site is safe, though improvements have been recommended to enhance oversight and risk management.

Earlier in the project, a B.C. First Nation claimed it was a $1-billion treaty violation, though an agreement was reached in 2020 after the province promised to improve land management and restore traditional place names in areas of cultural significance.

The Prophet River First Nation will also receive payments while the site is operating, and some Crown land will be transferred to the nation as part of the agreement. 

Additionally, residents of a tiny community not far from the site is suing the province over two slow-moving landslides they claim caused property values to plummet.

Nearly three dozen residents of Old Fort are behind the allegations of negligence and breach of their charter right to security of person. The claim is tied to two landslides, in 2018 and 2020, that the group alleges were caused by ground destabilization from construction related to Site C.

One of the landslides damaged the only road into the community, leaving residents under evacuation for a month.

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Toronto Electricity Demand Growth underscores IESO projections of rising peak load by 2050, driven by population growth, electrification, new housing density, and tech economy, requiring grid modernization, transmission upgrades, demand response, and local renewable energy.

Key Points

It refers to the projected near-doubling of Toronto's peak load by 2050, driven by electrification and urban growth.

✅ IESO projects peak demand nearly doubling by 2050

✅ Drivers: population, densification, EVs, heat pumps

✅ Solutions: efficiency, transmission, storage, demand response

Toronto faces a significant challenge in meeting the growing electricity needs of its expanding population and ambitious development plans. According to a new report from Ontario's Independent Electricity System Operator (IESO), Toronto's peak electricity demand is expected to nearly double by 2050. This highlights the need for proactive steps to secure adequate electricity supply amidst the city's ongoing economic and population growth.

Key Factors Driving Demand

Several factors are contributing to the projected increase in electricity demand:

Population Growth: Toronto is one of the fastest-growing cities in North America, and this trend is expected to continue. More residents mean more need for housing, businesses, and other electricity-consuming infrastructure.

• New Homes and Density: The city's housing strategy calls for 285,000 new homes within the next decade, including significant densification in existing neighbourhoods. High-rise buildings in urban centers are generally more energy-intensive than low-rise residential developments.
• Economic Development: Toronto's robust economy, a hub for tech and innovation, attracts new businesses, including energy-intensive AI data centers that fuel further demand for electricity.
• Electrification: The push to reduce carbon emissions is driving the electrification of transportation and home heating, further increasing pressure on Toronto's electricity grid.

Planning for the Future

Ontario and the City of Toronto recognize the urgency to secure stable and reliable electricity supplies to support continued growth and prosperity without sacrificing affordability, drawing lessons from British Columbia's clean energy shift to inform local approaches. Officials are collaborating to develop a long-term plan that focuses on:

• Energy Efficiency: Efforts aim to reduce wasteful electricity usage through upgrades to existing buildings, promoting energy-efficient appliances, and implementing smart grid technologies. These will play a crucial role in curbing overall demand.
• New Infrastructure: Significant investments in building new electricity generation, transmission lines, and substations, as well as regional macrogrids to enhance reliability, will be necessary to meet the projected demands of Toronto's future.
• Demand Management: Programs incentivizing energy conservation during peak hours will help to avoid strain on the grid and reduce the need to build expensive power plants only used at peak demand times.

Challenges Ahead

The path ahead isn't without its hurdles.  Building new power infrastructure in a dense urban environment like Toronto can be time-consuming, expensive, and sometimes disruptive, especially as grids face harsh weather risks that complicate construction and operations. Residents and businesses might worry about potential rate increases required to fund these necessary investments.

Opportunity for Innovation

The IESO and the city view the situation as an opportunity to embrace innovative solutions. Exploring renewable energy sources within and near the city, developing local energy storage systems, and promoting distributed energy generation such as rooftop solar, where power is created near the point of use, are all vital strategies for meeting needs in a sustainable way.

Toronto's electricity future depends heavily on proactive planning and investment in modernizing its power infrastructure.  The decisions made now will determine whether the city can support economic growth, address climate goals and a net-zero grid by 2050 ambition, and ensure that lights stay on for all Torontonians as the city continues to expand.
 

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India Nuclear Generation Shortfall highlights missed five-year plan targets due to uranium fuel scarcity, commissioning delays at Kudankulam, PFBR slippage, and PHWR equipment bottlenecks under IAEA safeguards and domestic supply constraints.

Key Points

A gap between planned and actual nuclear output due to fuel shortages, reactor delays, and first-of-a-kind hurdles.

✅ Fuel scarcity pre-2009-10 constrained unsafeguarded reactors.

✅ Kudankulam delays from protests, litigation, and remobilisation.

✅ FOAK PHWR equipment bottlenecks and PFBR slippage.

A lack of available domestically produced nuclear fuel and delays in constructing and commissioning nuclear power plants, including first-of-a-kind plants and the Prototype Fast Breeder Reactor (PFBR), meant that India failed to meet its nuclear generation targets under the governmental plans over the decade to 2017, even as global project milestones were being recorded elsewhere.

India's nuclear generation target under its 11th five-year plan, covering the period 2007-2012, was 163,395 million units (MUs) and the 12th five-year Plan (2012-17) was 241,748 MUs, Minister of state for the Department of Atomic Energy and the Prime Minister's Office Jitendra Singh told parliament on 6 February. Actual nuclear generation in those periods was 109,642 MUs and 183,488 MUs respectively, Singh said in a written answer to questions in the Lok Sabah.

Singh attributed the shortfall in generation to a lack of availability of the necessary quantities of domestically produced fuel during the three years before 2009-2010; delays to the commissioning of two 1000 MWe nuclear power plants at Kudankulam due to local protests and legal challenges; and delays in the completion of two indigenously designed pressurised heavy water reactors and the PFBR.

Kudankulam 1 and 2 are VVER-1000 pressurised water reactors (PWRs) supplied by Russia's Atomstroyexport under a Russian-financed contract. The units were built by Nuclear Power Corporation of India Ltd (NPCIL) and were commissioned and are operated by NPCIL under International Atomic Energy Agency (IAEA) safeguards, with supervision from Russian specialists, while China's nuclear program advanced on a steady development track in the same period. Construction of the units - the first PWRs to enter operation in India - began in 2002.

Singh said local protests resulted in the halt of commissioning work at Kudankulam for nine months from September 2011 to March 2012, when he said project commissioning had been at its peak. As a consequence, additional time was needed to remobilise the workforce and contractors, he said. Litigation by anti-nuclear groups, and compliance with supreme court directives, impacted commissioning in 2013, he said. Unit 1 entered commercial operation in December 2014 and unit 2 in April 2017.

Delays in the manufacture and supply by domestic industry of critical equipment for first-of-a-kind 700 MWe pressurised heavy water reactors -  Kakrapar units 3 and 4, and Rajasthan units 7 and 8 - has led to delays in the completion of those units, the minister said, as well as noting the delay in completion of the PFBR, which is being built at Kalpakkam by Bhavini. In answer to a separate question, Singh said the PFBR is in an "advance stage of integrated commissioning" and is "expected to approach first criticality by the year 2020."

Eight of India's operating nuclear power plants are not under IAEA safeguards and can therefore only use indigenously-sourced uranium. The other 14 units operate under IAEA safeguards and can use imported uranium. The Indian government has taken several measures to secure fuel supplies for reactors in operation and under construction, amid coal supply rationing pressures elsewhere in the power sector, concluding fuel supply contracts with several countries for existing and future reactors under IAEA Safeguards and by "augmentation" of fuel supplies from domestic sources, Singh said.

Kakrapar 3 and 4, with Kakrapar 3 criticality already reported, and Rajasthan 7 and 8 are all currently expected to enter service in 2022, according to World Nuclear Association information.

Joint venture discussions

In February 2016 the government amended the Atomic Energy Act to allow NPCIL to form joint venture companies with other public sector undertakings (PSUs) for involvement in nuclear power generation and possibly other aspects of the fuel cycle, reflecting green industrial strategies shaping future reactor waves globally. In answer to another question, Singh confirmed that NPCIL has entered into joint ventures with NTPC Limited (National Thermal Power Corporation, India's largest power company) and Indian Oil Corporation Limited. Two joint venture companies - Anushakti Vidhyut Nigam Limited and NPCIL-Indian Oil Nuclear Energy Corporation Limited - have been incorporated, and discussions on possible projects to be set up by the joint venture companies are in progress.

An exploratory discussion had also been held with Oil & Natural Gas Corporation, Singh said. Indian Railways - which has in the past been identified as a potential joint venture partner for NPCIL - had "conveyed that they were not contemplating entering into an MoU for setting up of nuclear power plants," Singh said.

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