Chinese Government Approves Mega Nuclear Power Projects Worth Over 200 Billion Yuan
On August 19, premier Li Keqiang chaired a State Council executive meeting that approved five nuclear power projects, totaling 11 nuclear reactor units with an estimated investment exceeding 200 billion yuan. This marks the highest single-year approval of nuclear reactor units in China since 2008. The approved projects primarily adopt third-generation nuclear power technology, including the Jiangsu Xuhui Phase I project by CNNC (3 units), CGN Group's Lufeng Phase I project, Zhaoyuan Phase I project in Shandong, San'ao Phase II project in Zhejiang (6 units), and the Guangxi Bailong Phase I project by SPIC (2 units). The meeting emphasized that safety is the top priority for nuclear power development, requiring strengthened supervision across the entire chain and all domains to ensure nuclear safety and promote the healthy growth of the industry. Since 2022, China's nuclear power industry has returned to a rapid development track, maintaining a high-speed approval pace this year.
China's nuclear expansion is driven by the need to reduce reliance on fossil fuels while ensuring a stable power supply. By 2035, the country aims to double the share of nuclear energy in its national energy mix from 5% to 10%, as it works towards carbon neutrality by 2060. This expansion is also expected to strengthen China's position as a global leader in nuclear energy, with projections that it could surpass the U.S. and France to become the largest producer of nuclear power by 2030.
Industry analysts believe that China's focus on third-generation nuclear technology, including the Hualong One reactors, emphasizes its commitment to safety and innovation in this sector. Additionally, the nuclear energy surge is seen as a crucial component in supporting the country's green energy transition, as nuclear energy is considered a key non-fossil fuel source necessary for long-term environmental sustainability.
Key Takeaways
- The State Council approved 5 nuclear power projects, comprising 11 reactor units, with a total investment exceeding 200 billion yuan.
- The projects, including Jiangsu Xuhui Phase I, mainly employ third-generation nuclear power technology.
- Emphasis on nuclear safety, enhancement of technological expertise, and risk prevention capability.
- The 2024 approval sets a record high since 2008, sustaining the rapid approval pace.
- China's nuclear power industry has been rapidly developing since 2022, with 10 reactor units approved for two consecutive years.
Analysis
China's large-scale approval of nuclear power projects will drive technological upgrades and enhanced safety regulation. In the short term, major enterprises such as CNNC, CGN Group, and SPIC will directly benefit, while in the long run, businesses up and down the nuclear power industry chain, including equipment suppliers and engineering contractors, will also gain growth momentum. This action will contribute to reduced carbon emissions and optimize energy structure, but vigilance is necessary against nuclear safety risks to ensure long-term stable development.
Did You Know?
- Third-Generation Nuclear Power Technology:
- Explanation: Third-generation nuclear power technology refers to advanced nuclear reactor designs that offer higher safety levels compared to previous generations. These designs typically include passive safety features that can safely shut down the reactor without the need for active human intervention or mechanical systems in case of an emergency. They also aim to reduce the likelihood and consequences of severe accidents.
- Comprehensive and Integrated Safety Regulation:
- Explanation: This term refers to a comprehensive and integrated approach to safety regulation that covers every stage and aspect of the nuclear power industry. "全链条" (full chain) implies oversight from the initial design and construction of nuclear facilities to their decommissioning, while "全领域" (full domain) extends this oversight to all related fields such as waste management, emergency preparedness, and public communication. This approach ensures that safety is prioritized at every step and across all relevant areas.
- State Power Investment Corporation Limited (SPIC):
- Explanation: The State Power Investment Corporation Limited, commonly known as SPIC, is one of the largest state-owned energy conglomerates in China. It is involved in various energy sectors including nuclear power, hydroelectric power, thermal power, and renewable energy. SPIC plays a significant role in the development and management of China's nuclear power projects, contributing to the country's energy security and clean energy goals.