Arunendra Kumar Tiwari and Alekhya Datta

India’s transition towards a cleaner energy system is gathering momentum, but generating more electricity from renewable sources alone will not be enough to meet the country’s growing energy needs. As industries expand, cities grow and household consumption rises, the real challenge will be to ensure a reliable supply of clean electricity at every hour of the day. This is where nuclear power must become an important part of India’s long-term energy strategy.

The goal set by the COP31 Presidency of increasing electricity’s share to 35 per cent of global final energy demand by 2035 reflects a major shift in how economies will function in the coming decade. Electrification is no longer limited to household lighting or transport. It increasingly involves cooking, industrial production, cooling, commercial activities and the rapidly expanding digital infrastructure that supports modern economies.

India has made considerable progress in this direction. According to the Bureau of Energy Efficiency’s India Energy Scenario 2024-25, electricity accounted for around 23 per cent of the country’s final energy consumption. However, when traditional fuels such as firewood, agricultural residue and dung are included, the share falls to approximately 19 per cent. The increase has also been gradual, rising from around 22 per cent five years ago on the narrower electricity-consumption measure.

Achieving the 35 per cent target by 2035 will therefore require a much faster pace of electrification.

The biggest challenge lies in the industrial sector, which accounts for nearly half of India’s final energy consumption. Electricity currently meets only about 19 per cent of industrial energy requirements, while coal continues to supply close to 58 per cent. Replacing coal in industrial heating and manufacturing processes will require enormous quantities of electricity that are not only affordable but also available continuously.

This makes the nature and timing of electricity generation as important as the total quantity produced.

Solar power and the changing demands on the grid

Solar energy has transformed India’s electricity landscape and will remain central to its clean energy ambitions. On July 29, 2025, renewable energy sources met a record 51.5 per cent of the country’s electricity demand. This demonstrates the growing contribution of clean energy to the national grid.

However, solar generation is inherently dependent on daylight, whereas electricity consumption does not follow the same pattern. Demand often remains high well after sunset, particularly during summer when households continue using fans and air conditioners through the night.

Buildings already account for nearly one-third of India’s electricity consumption. Household electricity use almost doubled over the past decade, increasing from 217 billion units in 2014-15 to around 409 billion units in 2024-25.

The growing adoption of electric vehicles adds another dimension. Around 8 per cent of new vehicle registrations are now electric, with much of the charging demand occurring during evening hours. Meanwhile, data centres, steel plants and other industrial facilities require uninterrupted electricity throughout the day.

This mismatch between solar generation and consumption is placing increasing pressure on the electricity grid. Analysis indicates that the midday decline in net electricity demand, after accounting for solar generation, has widened from around 25 GW in 2023 to 64 GW in 2026.

In practical terms, the electricity supplied by solar plants during the day must be replaced by other sources after sunset. At present, coal-fired power stations largely fill this gap.

Battery storage can help bridge the difference between daytime generation and evening demand. India is expanding its storage capacity, but the installed base remains relatively small. By mid-2026, the country had installed approximately 9.3 GWh of battery storage, compared with the Central Electricity Authority’s estimated requirement of around 35 GWh by 2026-27.

Batteries are particularly useful for storing surplus solar electricity and releasing it several hours later. However, relying entirely on battery storage to sustain an industrial economy through prolonged cloudy periods, monsoon spells and extended periods of high demand remains a difficult proposition.

India therefore needs dependable low-carbon electricity that is not dependent on weather conditions.

Nuclear energy: A long-term necessity

Nuclear power offers an important part of the solution. Unlike solar and wind, nuclear reactors can generate electricity continuously, making them suitable for meeting the country’s round-the-clock energy requirements.

At present, nuclear energy contributes only around 3 per cent of India’s total electricity generation. Even with projects currently under construction, installed nuclear capacity is expected to reach approximately 22.4 GW by 2034.

This represents meaningful progress, but nuclear power alone will not drive India towards its 2035 electrification target. Solar, wind, energy storage and improvements in efficiency will continue to account for the largest share of the expansion.

The importance of nuclear energy lies beyond that immediate target. It could determine whether India’s growing electricity consumption remains environmentally sustainable after 2035.

Without sufficient dependable low-carbon generation, the country may become increasingly reliant on coal to meet demand during the night and periods of low renewable generation. That would undermine the environmental benefits of electrification.

Nuclear power is among the few established sources of firm, low-carbon electricity that India can potentially expand using its domestic technological capabilities and fuel-cycle expertise.

Recognising this, the government has set an ambitious target of achieving 100 GW of nuclear power capacity by 2047. The SHANTI Act of 2025 has also opened the sector to greater private participation, allowing private companies to build, own, operate and decommission nuclear facilities, subject to central licensing and regulatory approvals.

The policy shift has generated interest among major industrial groups. NTPC has outlined plans for approximately 30 GW of nuclear capacity across at least 14 states, while the Adani Group has announced ambitions to develop up to 10 GW by 2035.

However, nuclear projects require long planning and construction periods, often approaching a decade. Decisions taken during the next five years will therefore have a direct bearing on India’s ability to maintain a clean and reliable electricity supply in the 2040s.

The race towards 2035 and the preparation for the decades beyond it must proceed simultaneously.

Three reforms to accelerate nuclear expansion

India’s nuclear ambitions will require more than investment announcements and capacity targets. The country needs reforms in electricity markets, technology deployment and financing.

First, electricity markets must reward reliability alongside affordability.

At present, India’s power markets largely favour the cheapest available electricity at a particular time. While this approach supports the expansion of low-cost solar power, it does not adequately recognise the value of generation sources that can supply electricity during periods of peak demand.

Power available at midday and power available at 9 pm during a hot August evening do not necessarily have the same system value.

Capacity payments, two-part tariffs and procurement mechanisms designed around round-the-clock electricity supply could help correct this imbalance. Such reforms would allow nuclear power to compete on the basis of its principal advantage: dependable generation.

Second, small modular reactors should be linked to industrial demand.

Steel, cement, fertiliser and chemical manufacturing clusters require large and continuous supplies of electricity. The expansion of data centres will further increase demand for reliable power.

Bharat Small Reactors could provide an opportunity to develop captive or cluster-based nuclear power facilities for such energy-intensive industries. This would bring generation closer to major consumers and potentially reduce pressure on long-distance transmission infrastructure.

The approach could also help industries reduce their dependence on coal and other fossil fuels.

Third, the cost of financing nuclear projects must come down.

One of the biggest obstacles to nuclear expansion is the high initial investment and the long period required to recover costs. Financing expenses account for a substantial portion of the overall cost of nuclear electricity.

Long-term concessional loans, sovereign green bonds and the clear inclusion of nuclear power in India’s green finance framework could improve the economics of new projects.

International cooperation on technology transfer and climate finance, particularly under the COP31 agenda, could also help mobilise the capital required for large-scale nuclear development.

These reforms must be supported by integrated energy planning. Nuclear power, renewable generation, battery storage and transmission infrastructure cannot be developed in isolation. Their expansion must be based on hourly electricity demand, seasonal variations and the changing requirements of industry and households rather than annual generation estimates alone.

The energy choices that will shape India’s future

India’s experience offers an important lesson for other rapidly developing economies pursuing ambitious electrification targets. Increasing electricity’s share in final energy consumption is only one part of a successful climate strategy. The other is ensuring that the electricity itself comes from reliable and low-carbon sources.

Solar energy can provide much of the additional electricity India needs by 2035. But maintaining a clean supply after sunset, during prolonged periods of poor weather and throughout the following decades will require a more diverse energy mix.

Nuclear power is unlikely to be the principal driver of India’s 2035 electrification target. Its greater significance lies in what comes next. Without dependable clean generation, the country risks replacing direct fossil-fuel consumption with electricity that is still heavily dependent on coal.

The objective, therefore, should not be to choose between solar and nuclear energy. Both have complementary roles in India’s energy transition. Solar and wind can provide expanding volumes of renewable electricity, while nuclear power can strengthen the reliability of the grid and reduce dependence on fossil fuels when renewable generation falls.

India’s clean energy future will ultimately depend not simply on how much electricity it can generate, but on whether that electricity remains affordable, dependable and environmentally sustainable around the clock.

Nuclear power may not determine whether India wins the electrification race by 2035. But the decisions taken today could determine whether the country wins the much bigger race for a secure, reliable and low-carbon energy future.