Nuclear Power, Renewable Resurgence and Energy Retailing: A Political Economic Perspective of the Emerging Trend in Energy Supplies

Abstract

Arguments in favor of nuclear power have been revived in recent years especially in emerging economies like India. The proponents of the nuclear power have put three arguments to justify their demand. These are: (a) Nuclear energy is safer today due to induction of better and safer technology. (b) Nuclear is a better energy option for mitigation of carbon emission and global warming. (c) India needs nuclear energy to sustain its projected rate of economic growth.

The paper is divided into three sections. The first section focuses on the above three issues. As volumes of research reports, articles; commentaries have been published already to address the first issue, here, a broad overview of these recent reports would be presented, in brief. The second section begins with a brief discussion on the alternative energy initiatives taken in different countries of the world, especially in Europe. Further, the alternative energy options still open to India but not yet considered by the energy planners of the country would be explored. The third section of the paper analyses the emerging trends of energy supplies and the possibility of developing a new decentralized energy model, with active involvement of consumers/citizens and civil society organizations (CSOs).

Few important questions which have emerged out of this discussion: (i) Why has the State aligned itself with the nuclear establishment without exploiting the renewable sources, knowing fully well about the adverse consequences of nuclear power? Could this collaboration be sustained in the long run? (ii) Is there any supply push factor along with the demand pull factor behind the resurgence of renewable energy? Could this be an outcome of a new strategic move by the major energy utilities to manage the energy system of 21st century in a different way? Possible answers to these questions have been sought in the last section of this paper.

Keywords: nuclear energy, renewable, energy retailing

JEL Classification: A10, O31