China seeks to diversify energy sector

China is exploring ways to diversify its electric power industry, Sergei Kondratyev, head of the economic department of the Institute of Energy and Finances, told media as he commented on China’s proposal to Russia to build two nuclear power plants on the territory of the People’s Republic of China, BelTA has learned.

“Despite the recent gas contract with Russia, China still remains largely dependable on coal. The same situation is observed in its electric power industry. Although the government of China has been taking efforts to diversify its fuel balance, the country will continue commissioning some 40-50GW of coal facilities annually in the coming years. This is more than all new coal-based generating capacities put into operation in the rest of the world. That is why China is interested in the maximum diversification of its power industry in the first place,” the analyst stressed.

Keeping in mind that Shanghai, Beijing and Guangzhou took a wide range of measures to control CO2 emissions, the residents of these cities still have to live in almost permanent smog all year round. This environmental issue is coming to the forefront of China’s present-day concerns. "China’s proposal to Rosatom was not accidental. For China, nuclear power plants have a huge advantage. First of all, it is their compactness (large-scale power production in a relatively small area). Secondly, nuclear power plants, unlike coal-fired power stations, do not need huge cargo transshipments: coal, storage depots and so on,” Sergei Kondratyev added.

He stressed that nuclear power plants take up minimum space, which is good taking into account high population density. “Nuclear power plants are ecologically safer in comparison with gas stations: they produce neither CO2 emissions nor greenhouse gases (for instance, nitrogen or sulphur oxides). Moreover, nuclear power plants generate relatively cheap electricity. For China this matter is among top priorities today. A popular myth that electrical energy in China is very cheap is not true. Electricity for the industrial sector costs over 10 cents per kWh. This is pretty expensive for China. Taking into account that the Chinese gas market is facing the liberalization of prices, the cost of electricity made from gas will not be cheap. This fact tips the balance in favor of nuclear power plants,” Sergei Kondratyev said.

According to Sergei Kondratyev, China and Russia have been cooperating successfully. The first stage of Tianwan Nuclear Power Plant (China’s first foreign project) built by Rosatom runs in full force. The IAEA has named the facility as the safest plant by now.

“It is not the only positive example. We have a lot of joint projects which are currently underway or pending agreement. Not long ago the China National Nuclear Corporation and Rosatom agreed to set up a working group on the construction of a floating nuclear power plant (FNPP). It is a promising area for China that is developing mineral resources at the shelf. Without the NFPP there is only one option, i.e. to provide these facilities with electricity generated at diesel power plants. But the prime cost of one kilowatt-hour produced by them is really exorbitant. One more example is cooperation in the development of an experimental fast fission reactor. An agreement in principle on its construction has already been reached with Russia. The two countries might as well cooperate in uranium enrichment and nuclear fuel production. Here I would like to mention the gas centrifuge facility which runs smoothly. The Chinese partners have never complained about it. Besides, the plant is rarely mentioned by the media, which is unsurprising. The nuclear power industry hits headlines only in case of emergency. When it runs faultlessly, it is usually taken as granted,” Sergei Kondratyev stressed.