China’s (New)Clear Future by Generation of Change

Barriers to China's (New)Clear Future: (Nuclear Energy and the "Other Generating Capacity" Category)

There will be many barriers to nuclear energy (as well as the "Other Generating Capacity" Category) [OGC Category]. Although nuclear power is emissions free, it is still inefficient and dangerous. For example, a typical nuclear reactor only uses about 5% of its fuel. The introduction of new fourth generation technology like high-temperature gas-cooled pebble-bed reactors (HTGR), molten-salt reactors fueled by thorium, sodium-cooled fast reactors [to reduce the risk of a nuclear reactor meltdown] and travelling wave reactors (TWR) to reuse depleted uranium as its fuel etc. could ameliorate these problems. These fouth generation technology are now being introduced in China. Further research and development is still definitely required to improve China’s nuclear sector and the funding has be obtained by categorizing nuclear energy as a national strategic industry (with the aim of exporting this technological capability worldwide). Hopefully China will also study the feasibility of converting nuclear materials for military purposes to civilian use such as electrical power generation.

Furthermore the depressed global commodity prices for crude oil, gas and coal (fossil fuels) will pose a cost competitive disadvantage for investing in nuclear energy. In July 2013 China’s National Development and Reform Commission (NDRC) set a wholesale power price of CNY 0.43 per kWh (7 US cents/kWh) for all new nuclear power projects, to promote the healthy development of nuclear power and guide investment into the sector. The price is to be kept relatively stable but will be adjusted with technology advances and market factors, though many consider it not high enough to be profitable. Therefore to make nuclear energy viable, China will need to depend on its highly regulated energy market to accelerate and scale up nuclear energy projects by providing subsidies to nuclear energy and the OGC Category. This support will enable nuclear energy (including the other OGC Category) to develop and become cost competitive (i.e. till there is an economy of scale).

The 13th Five-Year Plan formalized in March 2016 included the following nuclear projects and aims:

• Complete four AP1000 units at Sanmen and Haiyang.
• Build demonstration Hualong One reactors at Fuqing and Fangchenggang.
• Start building the demonstration CAP1400 reactor at Rongcheng (Shidaowan).
• Accelerate building Tianwan Phase III (units 5&6).
• Start building a new coastal power plant.
• Active preparatory work for inland nuclear power plants.
• Reach target of 58 GWe nuclear operational by end of 2020, plus 30 GWe under construction then.
• Accelerate and push for building demonstration and large commercial reprocessing plants.
• Strengthen the nuclear fuel security system.

This demonstrate  the political will (at top level) as well as the financing budgeted to implement them. It is unprecedented for China to embark on such a massive and tight time frame endeavor for its nuclear energy sector. To set up an entire infrastructure/eco-system of this scale will be a major undertaking, from the viewpoint of project management. Therefore China truly needs the support and expertise of the international community if it is to pull this through successfully.