By Amit Bhandari
NOVEMBER 6, 2015
NOVEMBER 6, 2015
Solar power developers have offered to sell electricity in India at less than Rs 5/unit. This makes solar competitive with traditional forms of energy, and makes new nuclear power plants financially unviable. India must register the changed reality, and discard the idea of expensive Western reactors. Time to scrap the India-U.S. nuclear deal?
Hard on the heels of falling oil prices and affordable shale, comes another dramatic energy changes for the energy industry: The falling cost of solar energy. This has many implications, but the most immediate impact the nuclear power industry, large parts of which may have just become obsolete. This means that the new nuclear power plants being planned by India, especially those with foreign collaboration, must be reconsidered and scrapped if they are financially unviable.
Most significant is the impact on the India-U.S. nuclear deal, held up by the liability clause to enable these reactors, and a sticking point in the bilateral for several years: technological advances have addressed an issue that negotiators couldn’t resolve.