NTPC considers bulk purchase of nuclear reactors

NTPC Ltd., India’s largest power producer, has sought the government’s approval to bulk purchase nuclear reactors, part of a wider national effort to expand atomic energy capacity as the country seeks to reduce dependence on fossil fuels.

The state-run company aims to buy large units ranging from 700 megawatts to about 1,730 megawatts each, but hasn’t yet finalised the size of the tender, according to people with knowledge of the matter. By purchasing in bulk, NTPC hopes to lower the overall cost, the people said, asking not to be named as the talks are still private.

NTPC has spearheaded India’s push to build 100 gigawatts of nuclear generation capacity by 2047, more than 11 times the current total, and is seeking to install almost a third of that target. New Delhi’s plan to change existing laws in order to attract private investment comes amid a global renaissance in atomic energy, widely seen as a means of providing around-the-clock, low-carbon power generation.

NTPC and India’s Department of Atomic Energy didn’t respond to emailed requests for comment.

India, the world’s third-largest CO2 emitter, is heavily reliant on coal for power generation. The nation has installed 8.8 gigawatts of atomic power since its oldest reactor was commissioned in 1969, and reaching the 2047 target would mean building half that capacity annually over the next 22 years.

The sector faces multiple challenges, including identifying safe sites, finding suppliers to support different kinds of reactor technologies, and, most importantly, winning local backing.

For NTPC, the nuclear pivot is part of an effort to reduce consumption of fossil fuels, which currently make up 85% of its generation capacity. Construction of its first nuclear plant, a venture with Nuclear Power Corp. of India, is expected to be completed by 2036.

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