Private players seek 'green energy' status for N-power to raise funds, Pg17

Key Highlights:

• Private players are advocating for nuclear power to be granted "green energy" status to facilitate access to green finance.
• This status would enable nuclear projects to utilize green bonds, green loans, and blended financing.
• A NITI Aayog consultation discussed reviewing existing green finance frameworks, including those from the Ministry of Finance, RBI, and SEBI.
• India aims to achieve 100 GWe nuclear power capacity by 2047, requiring an estimated $228 billion in investment.
• Private players also sought infrastructure status for nuclear power projects.

Nuclear Power.jpg

Detailed Insights:

• Current green finance frameworks in India do not explicitly include nuclear energy, hindering its funding.
• International bodies like the World Bank and Asian Development Bank are also re-evaluating restrictions on nuclear investments.
• The Harmonised Master List of Infrastructure Sub-sectors already includes electricity generation, suggesting nuclear power is implicitly covered.
• India recently opened its civil nuclear sector to private participation to accelerate capacity expansion.
• Final rules under the SHAKTI Act, crucial for power sector reforms, are expected soon after ongoing consultations.
• Key challenges for scaling nuclear power include reducing project gestation periods and identifying suitable sites.
• Developing thorium-based technologies is emphasized for strengthening India's long-term energy security.

Key Concepts Involved:

• Green Bonds: Debt instruments issued to finance projects with environmental benefits.
• Blended Financing: The strategic use of public and philanthropic development finance to mobilize private capital for sustainable development.
• Sovereign Green Bond Framework: A government-established framework for issuing green bonds to fund public sector environmental projects.
• SHAKTI Act: A policy framework aimed at reforming and streamlining the power sector in India.
• Thorium: A naturally occurring radioactive metal considered a potential alternative nuclear fuel to uranium.