Team Blitz India
NEW DELHI: NITI Aayog has pitched for establishing attractive financing frameworks such as blending finances and green bonds to attract private sector investment in setting up small modular reactors (SMR) to decarbonise India’s energy sector.
The Aayog in a report titled ‘The Role of Small Modular Reactors in Energy Transition’ further suggested that availability of low-cost finance, green finance and incorporation of nuclear into green taxonomy can improve the economics of SMR projects.
“De-risking SMR projects and establishing attractive financing frameworks such as blending finance, green bonds, etc. is pivotal for incentivising private investors,” it said.
According to the report, it has been observed that venture capital is a poor fit for the “hard” SMR sector.