East China Energy Crunch Drives Urgent Nuclear
Plant Demand
East China's worsening electricity and energy shortage
is forcing the Chinese government to put plans to build
nuclear power plants on the fast track. As summer approaches,
some cities in heavily industrialized Jiangsu province
have been forced to cut their electricity supply down
to only eight hours a day.
Currently, China has nine nuclear plants, the best-known
of which is in Daya Bay in Guangdong, which generates
electricity mainly for Hong Kong. It was completed in
1991, and was the first commercial nuclear reactor. It
is a pressurized water reactor (PWR) type generating 944
MW. Other commercial reactors
throughout China have followed since then.
While Chinese planners have stressed China's increasing
energy needs, few expected such a significant leap during
the past two years. As a result, the Chinese government
has had to play catch-up.
All of the major nuclear power plant contractors, including
Framatome, Westinghouse, and General Electric of the US,
have all been involved in lengthy discussions with Chinese
ministries. The energy
crunch means that the tables are turned in favor of
the nuclear power plant contractors, even though the projects
will be put out to competitive tenders.
The urgency of electricity needs promises to bring a
windfall to major nuclear power plant manufacturers, which
have been suffering ever since the Three Mile Island incident
in the US in 1978, and the Chernobyl disaster in the Ukraine
in 1986. While new safer technologies have been developed
to handle electricity generation, public fears about nuclear
energy have created a spirited opposition in Europe and
North America. China does not have an anti-nuclear movement.
Each plant costs about US$1.5 billion to build, with
construction taking about two years. Four reactors are
expected to be built using foreign technology, while four
others will use Chinese domestic technology.
Even if all the projects were immediately approved, there
would still be a severe energy shortage, which would last
two years before new electrical sources became available,
such as from the Three Gorges Dam.
Brazil has expressed strong
interest in selling the uranium to power the plants.
Before you go, did you like this article?
If so, you can receive a free email newsletter version
each weekday. Sign up using the China Business Express
form on this page.
