Page 248 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China
reduce its greenhouse emissions and position itself as a Fuel loading at the world’s first Westinghouse-
major energy exporter, hydropower continues to be the designed AP1000 nuclear reactor on China’s east coast
foundation of their energy transition. The country has has been delayed due to “safety concerns” in April 2018,
more than quadrupled its installed capacity since the the latest in a long line of setbacks for the project. The
turn of the century, and accounted for over half of global third-generation reactor, located in Sanmen in Zhejiang
hydropower growth, with much of the growth taking province, was originally expected to make its debut in
place in the country’s southwest. While development 2014. In a similar vein, the European Pressurized Reactor
has slowed since its most recent peak in 2014 when (EPR) in China’s Taishan, partly managed by French
over 30 GW was commissioned, average annual growth state utility EDF, finally carried out its first nuclear chain
in installed capacity is expected to remain steady at reaction earlier in 2018, more than six years behind
between 3.5 and 4 percent to 2020 in order to achieve the schedule and more than three times its initial budget.
government’s 13th Five-Year Plan target of 380 GW (IHA). Given this pattern of delays and bloated budgets, it’s
not surprising that China is looking to Russia instead to
China is also expanding its renewable energy provide the technology it is hoping will slash its carbon
transition overseas along the routes of the Belt and Road, emissions. A variety of factors, however, including China’s
and has already investing US$32 billion in renewable desperate need to provide low-carbon base load power
energy projects abroad. China has been taking big strides to underpin the large amounts of renewable capacity it
to develop renewable energy projects throughout Asia is bringing on board, mean that the Chinese market has
including hydropower projects in Pakistan and Tajikistan ample demand for Russian-built nuclear projects as well
(HSBC), African nations who have taken advantage of as those from other international partners (Kleven).
Chinese investments include Nigeria and Egypt.
On the other hand, in late May 2018, a hemispherical
Not all of the projects, however, are going as planned. dome, weighing over 200 tons and measuring 45 meters
Nepal’s government said in May 2018 that it will build in diameter, was installed by crane on the No. 3 unit at
a 750 MW hydroelectric plant that was earlier cleared China’s nuclear power project in Fangchenggang. The
to be developed by China’s state-owned Three Gorges project used Hualong One technology, a domestically
International Corp. The announcement effectively scraps developed third generation reactor design. The
a US$1.6 billion plan by the Chinese firm to build the installation was finished eight days ahead of schedule,
plant on West Seti river in the west of the Himalayan marking the beginning of the assembly stage, according
nation, the second such plant to be withdrawn from to the China National Nuclear Corporation (CNNC).
Chinese builders in less than a year. In November 2017, Construction of Unit 3 and Unit 4, as Phase II of the
Nepal scrapped a US$2.5 billion deal with another Fangchenggang plant, will provide reference for the
Chinese company, Gezhouba Group, to build a 1,200 MW proposed Bradwell B plant in Essex in Britain, as China
hydroelectric plant on the Budhi Gandaki River also in has won the UK deal. Hualong One was jointly designed
west Nepal. That project was scheduled for completion by China’s two nuclear power giants, China General
by 2021-22 (Reuters, Nepal Says). Nuclear Power Group and CNNC, and passed inspection
by a national panel in August 2014. Total installed nuclear
Nuclear Power power capacity in operation was nearly 36 million KW,
ranking fourth worldwide. The volume is expected to
In order to wean itself off coal and reduce reach 58 million KW by 2020, with the number of under-
environmental pollution while continuing to grow its construction nuclear reactors leading the world for many
economy, Beijing is increasingly turning to nuclear years (Xinhua, China Fuels Clean).
energy to feed the country’s hunger for power in a
more sustainable way. One potential reason why China Furthermore, the Chinese government has emerged as
has chosen to enter into closer cooperation with Russia a potential buyer of a multibillion-pound stake in Britain’s
rather than other exporters of nuclear technology is nuclear power plants. The talks will reignite debate about
its past experiences with European and American-run China’s involvement in the UK nuclear power industry. In
projects, which have been characterized by persistent 2016, the government paused approval for the £18 billion
delays, technical problems and cost overruns (Kleven). Hinkley Point C project because of security concerns over
China’s stake. China General Nuclear Power Group (CGN),
a state-run corporation, is said to be interested in buying
248
reduce its greenhouse emissions and position itself as a Fuel loading at the world’s first Westinghouse-
major energy exporter, hydropower continues to be the designed AP1000 nuclear reactor on China’s east coast
foundation of their energy transition. The country has has been delayed due to “safety concerns” in April 2018,
more than quadrupled its installed capacity since the the latest in a long line of setbacks for the project. The
turn of the century, and accounted for over half of global third-generation reactor, located in Sanmen in Zhejiang
hydropower growth, with much of the growth taking province, was originally expected to make its debut in
place in the country’s southwest. While development 2014. In a similar vein, the European Pressurized Reactor
has slowed since its most recent peak in 2014 when (EPR) in China’s Taishan, partly managed by French
over 30 GW was commissioned, average annual growth state utility EDF, finally carried out its first nuclear chain
in installed capacity is expected to remain steady at reaction earlier in 2018, more than six years behind
between 3.5 and 4 percent to 2020 in order to achieve the schedule and more than three times its initial budget.
government’s 13th Five-Year Plan target of 380 GW (IHA). Given this pattern of delays and bloated budgets, it’s
not surprising that China is looking to Russia instead to
China is also expanding its renewable energy provide the technology it is hoping will slash its carbon
transition overseas along the routes of the Belt and Road, emissions. A variety of factors, however, including China’s
and has already investing US$32 billion in renewable desperate need to provide low-carbon base load power
energy projects abroad. China has been taking big strides to underpin the large amounts of renewable capacity it
to develop renewable energy projects throughout Asia is bringing on board, mean that the Chinese market has
including hydropower projects in Pakistan and Tajikistan ample demand for Russian-built nuclear projects as well
(HSBC), African nations who have taken advantage of as those from other international partners (Kleven).
Chinese investments include Nigeria and Egypt.
On the other hand, in late May 2018, a hemispherical
Not all of the projects, however, are going as planned. dome, weighing over 200 tons and measuring 45 meters
Nepal’s government said in May 2018 that it will build in diameter, was installed by crane on the No. 3 unit at
a 750 MW hydroelectric plant that was earlier cleared China’s nuclear power project in Fangchenggang. The
to be developed by China’s state-owned Three Gorges project used Hualong One technology, a domestically
International Corp. The announcement effectively scraps developed third generation reactor design. The
a US$1.6 billion plan by the Chinese firm to build the installation was finished eight days ahead of schedule,
plant on West Seti river in the west of the Himalayan marking the beginning of the assembly stage, according
nation, the second such plant to be withdrawn from to the China National Nuclear Corporation (CNNC).
Chinese builders in less than a year. In November 2017, Construction of Unit 3 and Unit 4, as Phase II of the
Nepal scrapped a US$2.5 billion deal with another Fangchenggang plant, will provide reference for the
Chinese company, Gezhouba Group, to build a 1,200 MW proposed Bradwell B plant in Essex in Britain, as China
hydroelectric plant on the Budhi Gandaki River also in has won the UK deal. Hualong One was jointly designed
west Nepal. That project was scheduled for completion by China’s two nuclear power giants, China General
by 2021-22 (Reuters, Nepal Says). Nuclear Power Group and CNNC, and passed inspection
by a national panel in August 2014. Total installed nuclear
Nuclear Power power capacity in operation was nearly 36 million KW,
ranking fourth worldwide. The volume is expected to
In order to wean itself off coal and reduce reach 58 million KW by 2020, with the number of under-
environmental pollution while continuing to grow its construction nuclear reactors leading the world for many
economy, Beijing is increasingly turning to nuclear years (Xinhua, China Fuels Clean).
energy to feed the country’s hunger for power in a
more sustainable way. One potential reason why China Furthermore, the Chinese government has emerged as
has chosen to enter into closer cooperation with Russia a potential buyer of a multibillion-pound stake in Britain’s
rather than other exporters of nuclear technology is nuclear power plants. The talks will reignite debate about
its past experiences with European and American-run China’s involvement in the UK nuclear power industry. In
projects, which have been characterized by persistent 2016, the government paused approval for the £18 billion
delays, technical problems and cost overruns (Kleven). Hinkley Point C project because of security concerns over
China’s stake. China General Nuclear Power Group (CGN),
a state-run corporation, is said to be interested in buying
248
