Page 186 - 2017 White Paper
P. 186
7 White Paper on the Business Environment in China
see China’s miners export some of their surplus output “Building more nuclear power stations is essential
at competitive prices, hitting regional miners and the to China’s endeavor to cope with energy shortage and
viability of new projects. pollution”, agreed deputy director of the Science and
Technology Committee of the China National Nuclear
This is a major shift for a country that built an average Corporation (CNNC) Ye Qizhen: “China’s installed capacity
of two coal-fired power plants every week in the last of nuclear power is expected to reach 70 million kW
decade, went from net exporter in 2009 to the world’s by 2020, 200 million kW by 2030 and 400 million kW by
top importer just two years later, and burns nearly as 2050, [… which means that] nuclear power will account
much coal as the rest of the world combined. for 7 percent of China’s overall power capacity in 2020, 15
percent in 2030 and 22 percent in 2050” (Xinhua 2009b).
“China is kicking its coal addiction”, said Chen Yafei, The target for generation set in the 12th Five-Year Plan is to
vice-director at the China Coal Research Institute.“With reach a capacity of 40 million kW (Velker 2011).
slower economic growth and a big push towards gas
and renewables, the golden decade for coal is over”. Externalities may play a long-lasting role in the
(Wong 2013). development of the sector. “In the aftermath of the 2011
Fukushima nuclear crisis in Japan, Beijing cut its 2020
As noted by Mr. Chen, a growing proportion of capacity nuclear power capacity target to 58 gigawatt (GW) from
formerly served by coal may go to non-traditional sources. 80-90 GW”, reports Reuters (Zhu 2013).
The category of non-fossil fuels is understood to Problematically, “aggressive expansion of nuclear
include “the energy sources of hydropower, wind power, power it is running into a major stumbling blocks—a
solar power, biogas, and nuclear” (China Briefing 2011a). breakdown of trust, post-Fukushima, in official assurances
of public safety”. In July of 2013, for example, “a $6 billion
White Paper contributors Dezan Shira & Associates uranium processing plant in the southern province of
report that “China will spend an estimated US$1.54 trillion Guangdong was canceled [after] about a thousand people
on clean energy projects in the next 15 years”, and that took to the streets demanding the project was scrapped
it expects merger and acquisition activity in the field to over public health and environmental fears” (Zhu 2013).
show continuing growth (China Briefing 2011a).
“Industry insiders blamed the cancellation of the project
Development of nuclear power is expected to proceed on poor communication and a lack of public education.
but is unlikely to outstrip other sources in the clean energy They say if things do not improve more protests could
mix. Whereas in 2009 a State Nuclear Power Technology spring up elsewhere, threatening those plans to build new
Corp (CNPTC) analyst told China Daily that nuclear power reactors” (Zhu 2013).
generation then accounted for less than 2 percent of
the nation’s overall capacity (Wan 2009), a reported Hydropower, a strong contributor to China’s power
government investment of 600 billion yuan over 10 years production, especially in central and western provinces,
(Song 2010), may help to increase nuclear generation’s was attributed approximately 7.8 percent of the national
role in satiating China’s increasing energy demands. installed capacity in 2008, up from one percent in 1949
(China Daily 2009c).
By January 2011, there were 15 nuclear power reactors
across four sites in the PRC, and 26 additional reactors In 2010, the PRC owned the world’s largest installed
under construction (The World Nuclear Association hydropower capacity (213 gigawatts), the majority of
2012); although historically nuclear sites have been built which is located in southern and western provinces (China
in coastal regions, new plants are also planned for inland Briefing 2011a).
areas (Velker 2011).
The May 12, 2008 earthquake in Sichuan, however,
According to Li Junfeng, Deputy Director-General of highlighted concerns about the stability of hydroelectric
the NDRC’s Energy Research Institute,“The move to further infrastructure. Minister of Water Resources Chen Lei
develop nuclear power is integral for China to achieve its announced two days following the disaster that some
goals in and emission control” (Xiao 2010). 391 dams were believed to be badly damaged—but even
before the earthquake raised doubts about the structural
186
see China’s miners export some of their surplus output “Building more nuclear power stations is essential
at competitive prices, hitting regional miners and the to China’s endeavor to cope with energy shortage and
viability of new projects. pollution”, agreed deputy director of the Science and
Technology Committee of the China National Nuclear
This is a major shift for a country that built an average Corporation (CNNC) Ye Qizhen: “China’s installed capacity
of two coal-fired power plants every week in the last of nuclear power is expected to reach 70 million kW
decade, went from net exporter in 2009 to the world’s by 2020, 200 million kW by 2030 and 400 million kW by
top importer just two years later, and burns nearly as 2050, [… which means that] nuclear power will account
much coal as the rest of the world combined. for 7 percent of China’s overall power capacity in 2020, 15
percent in 2030 and 22 percent in 2050” (Xinhua 2009b).
“China is kicking its coal addiction”, said Chen Yafei, The target for generation set in the 12th Five-Year Plan is to
vice-director at the China Coal Research Institute.“With reach a capacity of 40 million kW (Velker 2011).
slower economic growth and a big push towards gas
and renewables, the golden decade for coal is over”. Externalities may play a long-lasting role in the
(Wong 2013). development of the sector. “In the aftermath of the 2011
Fukushima nuclear crisis in Japan, Beijing cut its 2020
As noted by Mr. Chen, a growing proportion of capacity nuclear power capacity target to 58 gigawatt (GW) from
formerly served by coal may go to non-traditional sources. 80-90 GW”, reports Reuters (Zhu 2013).
The category of non-fossil fuels is understood to Problematically, “aggressive expansion of nuclear
include “the energy sources of hydropower, wind power, power it is running into a major stumbling blocks—a
solar power, biogas, and nuclear” (China Briefing 2011a). breakdown of trust, post-Fukushima, in official assurances
of public safety”. In July of 2013, for example, “a $6 billion
White Paper contributors Dezan Shira & Associates uranium processing plant in the southern province of
report that “China will spend an estimated US$1.54 trillion Guangdong was canceled [after] about a thousand people
on clean energy projects in the next 15 years”, and that took to the streets demanding the project was scrapped
it expects merger and acquisition activity in the field to over public health and environmental fears” (Zhu 2013).
show continuing growth (China Briefing 2011a).
“Industry insiders blamed the cancellation of the project
Development of nuclear power is expected to proceed on poor communication and a lack of public education.
but is unlikely to outstrip other sources in the clean energy They say if things do not improve more protests could
mix. Whereas in 2009 a State Nuclear Power Technology spring up elsewhere, threatening those plans to build new
Corp (CNPTC) analyst told China Daily that nuclear power reactors” (Zhu 2013).
generation then accounted for less than 2 percent of
the nation’s overall capacity (Wan 2009), a reported Hydropower, a strong contributor to China’s power
government investment of 600 billion yuan over 10 years production, especially in central and western provinces,
(Song 2010), may help to increase nuclear generation’s was attributed approximately 7.8 percent of the national
role in satiating China’s increasing energy demands. installed capacity in 2008, up from one percent in 1949
(China Daily 2009c).
By January 2011, there were 15 nuclear power reactors
across four sites in the PRC, and 26 additional reactors In 2010, the PRC owned the world’s largest installed
under construction (The World Nuclear Association hydropower capacity (213 gigawatts), the majority of
2012); although historically nuclear sites have been built which is located in southern and western provinces (China
in coastal regions, new plants are also planned for inland Briefing 2011a).
areas (Velker 2011).
The May 12, 2008 earthquake in Sichuan, however,
According to Li Junfeng, Deputy Director-General of highlighted concerns about the stability of hydroelectric
the NDRC’s Energy Research Institute,“The move to further infrastructure. Minister of Water Resources Chen Lei
develop nuclear power is integral for China to achieve its announced two days following the disaster that some
goals in and emission control” (Xiao 2010). 391 dams were believed to be badly damaged—but even
before the earthquake raised doubts about the structural
186
