China pushes through with nuke dreams amid buoyant market views

3rd largest nuke power operator is up and coming.

According to Barclays, recent newsflow on nuclear power has brought about very positive dynamics in the industry. CPI and SNPTC are to merge to become the third-largest nuclear power operator in China. Meanwhile, Chinese leaders have approached the UK, Romania and Argentina, and have successfully confirmed the export of China’s thirdgeneration nuclear technology. 

The resumption of coastal nuclear power construction in China will fuel industry growth during the 13th FYP. 

Here's more from Barclays:

CPI’s and SNPTC’s merger shows the government’s determination to achieve its aggressive 13th FYP, focusing on nuclear power installations. China Power Investment (CPI) Group announced that the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council of China has asked China CPI to commence consolidation and reorganisation works with the State Nuclear Power Technology Corporation (SNPTC).

Although no further details have been released yet, we can clearly see the Chinese government’s stance on achieving its 13th five-year plan (FYP), which is to cumulativelly install 58GW of nuclear power in China by end-2020.

To do so, the National Development and Reform Commission (NDRC) will have to start construction of around 8GW of Gen-III tech nuclear power projects in 2015. However, all the Gen-III technologies are currently facing varying levels of problems.

SNPTC as the designated national R&D platform for Chinese Gen-III tech, had imported AP1000 from Westinghouse in US, and it is considered the first Chinese company to successfully ramp up AP1000 and its own third generation nuclear technology CAP1400.

Now with SNPTC’s advanced nuclear power technology and CPI’s strong funding and power station operating abilities, they will become the third force of nuclear power in China. 

Cooperation with other countries will benefit the Big Three Chinese nuclear operators through the valuable experience of Gen-III nuclear technology. Chinese leaders President Xi Jinping and Premier Li Keqiang have been successful in approaching France, Romania and Argentina for the co-development of nuclear power in local countries.

The leaders have helped the Big Three (CGN, CNNC, CPI) sign agreements with local nuclear power operators to co-develop the newest Gen-III tech nuclear power stations. China General Nuclear for example will co-develop two 1.6GW power stations in Hinkley Point C in UK with the French Gen-III nuclear tech EPR, which CGN is also using to build the Taishan Nuclear Power Station Unit 1-2 in Guangdong province, China.

This will not only contribute more revenue to CGN, but more importantly 

allow the company to gain precious experience in the third generation of nuclear power, which is not yet used in any other nuclear power operations around the world.