Multiple Nuclear Power Projects to Start Construction This Year

　At the annual conference of the China Nuclear Energy Association (CNEA) held on April 22, Zhang Huazhu, Chairman of CNEA, stated that 2015 is a critical year for the restart of nuclear power in China. It is expected that 6-8 nuclear power units will start construction and 8 units will be put into commercial operation within the year, making it the year with the most nuclear power units entering commercial operation. China’s nuclear power industry is about to embrace a new round of intensive approval period.

Inland Nuclear Power Restart Put on Agenda
The restart of inland nuclear power, which has attracted wide market attention, has also been put on the agenda. CNEA revealed that it will strive to promote the launch of inland nuclear power construction projects during the 13th Five-Year Plan period (2016-2020), and the fourth-generation nuclear power plant in Ruijin, Jiangxi Province will apply for construction in 2017.

In March this year, Units 5 and 6 of the Liaoning Hongyanhe Nuclear Power Plant were approved for construction, marking the official restart of China’s nuclear power industry. On April 15, the State Council Executive Meeting decided to approve the construction of demonstration units using the “Hualong One” third-generation nuclear power technology, creating favorable conditions for Chinese nuclear power equipment to “go global” and carry out third-party cooperation. Driven by policy support, the restart of nuclear power has accelerated.

According to reports, China currently has 26 nuclear power units under construction, with a total installed capacity of 28.5 million kilowatts, maintaining the world’s largest under-construction scale.

By the end of 2014, China’s total installed nuclear power capacity reached 20.306 million kilowatts, accounting for 1.49% of the country’s total installed power capacity; the cumulative power generation was 130.58 billion kilowatt-hours, accounting for 2.39% of the national total power generation, an increase of 18.89% compared with 2013. Zhang Huazhu believes that the period before 2030 is an important strategic opportunity for China’s nuclear power development. In the next 10 years, China’s nuclear power industry must maintain a relatively fast development speed to achieve the nuclear power development goals set in the Action Plan for Energy Development Strategy (2014-2020). In terms of project advancement, the AP1000 nuclear power localization demonstration project needs to solve the problems encountered in the construction of the first unit as soon as possible; the requirement to restart the construction of new nuclear power projects in coastal areas needs to be implemented promptly; and the research and demonstration of inland nuclear power construction needs to be accelerated. Only in this way can strong support be provided for the steady development of nuclear power during the 13th Five-Year Plan period.

Significant Progress in Nuclear Power-Related Laws and Regulations
At the policy level, significant progress has been made in a number of nuclear power-related laws and regulations. Wang Chengwen, a member of the Party Leadership Group of the State Administration of Science, Technology and Industry for National Defense, revealed at the conference that the Atomic Energy Law has been submitted to the State Council, and efforts will be made to pass its review within this year. The National Nuclear Safety Administration also recently announced that the submission of the Nuclear Safety Law for review is expected to be advanced, and breakthrough progress has been achieved.

The restart of inland nuclear power, which has attracted wide market attention, has also been put on the agenda. Zhang Huazhu disclosed that in accordance with the requirements of the National Energy Administration to “conduct research and demonstration on inland nuclear power construction”, CNEA has completed the Re-study on Several Important Issues in Inland Nuclear Power Construction, and will strive to promote the launch of inland nuclear power construction projects during the 13th Five-Year Plan period. Shu Weiguo, Chief Economist of China National Nuclear Corporation (CNNC), stated that the preliminary feasibility study report of the 600,000-kilowatt commercial high-temperature gas-cooled reactor nuclear power project in Ruijin, Jiangxi Province has passed expert review. As the world’s first commercial fourth-generation nuclear power plant, the company plans to apply for construction in 2017. Industry insiders believe that the probability of inland nuclear power being liberalized during the 13th Five-Year Plan period is very high.

Fully Prepared for Construction
While receiving strong policy support, major nuclear power groups have also made preparations for project construction.

Xing Ji, Chief Designer of CNNC’s “Hualong One”, introduced that after the “Hualong One” demonstration project was settled in the second phase of the Fuqing Nuclear Power Plant, Units 5 and 6 of Fuqing recently passed the final expert review meeting organized by the National Nuclear Safety Administration. The project will officially start construction at the end of April or early May, with all preparatory work completed and main equipment ordered. The first “Hualong One” unit is scheduled to be put into commercial operation in July 2020. Xing Ji stated that the settlement of the “Hualong One” demonstration project in the second phase of Fuqing has strategic significance for implementing the national nuclear power development plan, ensuring energy security, improving the environment, and promoting the industrialization and “going global” of China’s nuclear power industry.

Xian Chunyu, Chief Designer of China General Nuclear Power Group’s (CGN) “Hualong One”, introduced that as one of the “Hualong One” demonstration projects, all work on Units 3 and 4 of the second phase of the Fangchenggang Nuclear Power Plant, including design documents, equipment procurement and supply, on-site construction preparation, project approval and license application, is progressing steadily as planned. The project is scheduled to start construction by the end of July this year.

Wang Yong, Assistant to the President of Shanghai Nuclear Engineering Research & Design Institute, introduced that all tests for the CAP1400 project have been completed, and the Rongcheng Shidao Bay project has met the conditions for construction start.

Wang Yongfu, Director of the Nuclear Power Business Department of China Huaneng Group, introduced that Shandong Shidao Bay has become Huaneng’s first nuclear power base for development and construction. In addition to the high-temperature gas-cooled reactor nuclear power demonstration project, Huaneng has jointly invested in two CAP1400 units with State Nuclear Power Technology Corporation, and planned the subsequent expansion project of four 1-million-kilowatt nuclear power units. The research and development and testing of key nuclear island technologies have been basically completed, and phased progress has been made in testing and verification. All key equipment for the fuel element production line has been delivered, and the installation of equipment and systems has been completed. Production is scheduled to officially start in September this year.

Nuclear Power Units Competing to “Go Global”
It is reported that China will export 5 “Hualong One” nuclear reactors to Pakistan, involving a total amount of approximately 15 billion US dollars. This is currently the largest export project in China’s nuclear power industry. Nuclear power “going global” is expected to become the second economic growth point after high-speed rail. Major nuclear power groups have accelerated their pace of “going global”, with third-generation nuclear power units with independent intellectual property rights becoming the main promotion projects.

Xing Ji introduced that in 2013, CNNC exported two ACP1000 large nuclear reactors to Pakistan. Currently, the pre-construction review for the Pakistan K-2/K-3 project is underway, and construction is scheduled to start by the end of May.

The Argentina project is progressing smoothly. On February 4, the Chinese and Argentine governments signed an agreement, authorizing CNNC and the Argentine nuclear power company to be responsible for the specific implementation of the cooperation agreement. Follow-up work is proceeding as planned. Xing Ji said that great progress has been made in the cooperation project for Egypt’s nuclear power plant, with a memorandum of understanding signed, and relevant cooperation matters are being promoted at an accelerated pace. CNNC is also negotiating cooperation in Saudi Arabia, South Africa, Singapore, Sudan and other countries, which have shown strong interest in the “Hualong One”.

Regarding CGN’s overseas market promotion, Xian Chunyu introduced that the British government has agreed that Chinese enterprises led by CGN will participate in the development and construction of new nuclear power projects in the UK. Chinese enterprises have effectively entered the UK’s new nuclear power market, initially locking in one equity participation project and one holding project. Among them, the equity participation Hinkley Point C project uses EPR technology, and a Chinese joint team led by CGN is participating in its development; the “Hualong One” is expected to be applied to the holding Bradwell B project. All parties have reached consensus on many core clauses of the UK nuclear power project cooperation agreement. If progress goes smoothly, a final investment decision is expected to be made in the second half of this year.

In addition to the UK project, CGN is also promoting nuclear power “going global” in South Africa, Romania, Turkey, the Czech Republic, Poland and other countries. Shu Weiguo introduced that China Nuclear Engineering & Construction Group is promoting the industrialization of high-temperature gas-cooled reactor technology in Saudi Arabia, Dubai, South Africa and other countries or regions, and will accelerate the pace of “going global” for high-temperature gas-cooled reactor technology in the next step. In August 2014, China Nuclear Engineering & Construction Group launched cooperation with the Saudi Arabian National Atomic Energy Project and Renewable Energy Project, and a memorandum of understanding will be signed in the near future. In April 2015, China Nuclear Engineering & Construction Group formally signed a cooperation memorandum of understanding with the South African Nuclear Energy Corporation.

It is reported that the localization rate of the first domestic “Hualong One” unit under construction has reached 85%, and the equipment localization rate will not be less than 95% after mass construction; the equipment localization rate of CAP1400 has reached 85%, and all key equipment has started production. With the restart of nuclear power and the accelerated pace of “going global”, China’s nuclear power industry will usher in a dual peak of unit commissioning and construction start in the coming period. The nuclear power industry is undergoing generational change, and competitive equipment suppliers in the third-generation nuclear power sector deserve attention. The activation of the nuclear power stock market will boost the performance of companies involved in nuclear fuel, consumables, pumps and valves. Relevant equipment suppliers such as China First Heavy Industries, Dongfang Electric, Shanghai Electric, Harbin Electric Company, Zhefu Holding Group, and Danfu Co., Ltd. will benefit from this.