What’s new: China’s cabinet approved two nuclear power projects with a total investment of 70 billion yuan ($10.2 billion), as part of the country’s policy to lower pollution levels and bolster the economy through infrastructure investment.
The approved projects were Hainan Changjiang nuclear power plant phase 2 and Zhejiang San’ao nuclear power plant phase 1. The Hainan plant will be jointly constructed by state-owned China National Nuclear Corp. and China Huaneng Group Co. Ltd.
The Zhejiang plant will be the first nuclear power project involving private capital. Chinese auto maker Zhejiang Geely Holding Group’s investment subsidiary will take a 2% stake in the plant.
The background: China is the third-largest nuclear power producer in total nuclear power capacity installed and electricity generated, behind the U.S. and France. But with nuclear power plants under construction and proposed, China is on track to surpass the U.S. as the world’s top producer of nuclear energy as early as 2030.
Nuclear plants have long been a favored energy option for Beijing. In a nuclear energy development blueprint report released in June, the China Nuclear Industry Association said the country is expected to build six to eight nuclear power units each year in the next five years.
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com)
