China's rapid economic development has been accompanied by a huge increase in energy demand. Since 1990, China's primary energy consumption has risen by more than 70%. In the first decade of the 21st century, China became the world's second largest energy consumer (after the United States) and the third largest energy producer (after the United States and Russia).
(655.5799) CESDRRC - Low energy efficiency and rising living standards contribute to a steady increase of consumption in China. On the one hand, according to estimates by the Asian Development Bank, China uses four times the amount of energy to produce a unit of GDP than the Group of Seven developed countries. On the other hand, compared to western countries the average per capita energy consumption is still low: the average Chinese citizen consumes only one eighth of a U.S citizen, but consumption is expected to grow fast. The ongoing trend of urbanization and motorization and the aim to quadruple the economy by 2020 will result in a further increase in energy, mainly coal, consumption. China plans to built more than 500 additional coal-fired power plants in the coming 15 years, for example (*1).
The dependence on conventional fossil fuels, namely coal and crude oil, have created severe environmental pollution problems and a rapid increase of greenhouse gas (GHG) emissions. As soon as in 2008 China is expected to overtake the United States as the world's largest emitter of CO2. (*2) At present seventy percent of China's CO2 emissions are derived from coal combustion.
China's energy resources are not well distributed with respect to economic development and demand. Coal and natural gas reserves are mainly concentrated in the western provinces, hydropower in the southwest. Energy demand, on the other hand is highest in the eastern coastal provinces of Guangdong, Zhejiang and Jiangsu, and especially in the mega-cities Shanghai, Beijing and Tianjin, where in recent years power cuts during peak seasons have become a frequent problem.
In view of the mentioned problems related to fossil fuels, the Chinese government has in recent years shown serious commitment to improve energy efficiency and develop renewable and so-called "clean energies", including nuclear energy. For the first time, the present 11th Five-Year Plan (2006-2010) includes the goal to reduce energy consumption by 20% per unit GDP by 2010, and to increase the share of renewable energies in the energy portfolio to up to 15%. China is planning to invest US$ 185 billion to meet this goal. (*3). Development plans also call for a considerable development of nuclear power. So the aimed increase of the share of nuclear energy to 4% from present 2% compared to some western nuclear nations remains relatively modest, the increase will equal the construction of 30 new nuclear plants by 2020, making China one of the last nations in the world where considerable development of nuclear industry is expected.
China's Nuclear Energy Programme
In China, it is often mentioned that nuclear energy is a CO2 emission free energy resource (alongside renewable energies) and has to be considered as a form of "clean energy". In international negotiations China has been consequently a strong supporter for the proposal to include nuclear energy into the Clean Development Mechanism (CDM). China's civilian programme for nuclear power generation was initiated in the 1980s, with the indigenous design and construction of a 300 MW pressurized water reactor (PWR). Construction of the Qinshan Unit 1 plant about 100 km southwest of Shanghai started in 1985, operation began in 1991. In the mid-1980s, the Daya Bay project near Hong Kong was started. Daya Bay Units 1 and 2 are equipped with PWR units of 984 MW, supplied by the French company Framatome. The two reactors began commercial operation in 1994. About 70% of their power is transmitted to Hong Kong and 30% to Guangdong Province. As a reaction, environmental activists in Hong Kong collected about one million signatures, protesting against Daya Bay, but their protests were ignored by Beijing authorities.
Since the beginning of the new millennium, another seven nuclear plants have been connected to the power grid: Qinshan Units 2A and B with Chinese designed reactors started operation in 2002 and 2004, respectively, Qinshan Units 3A and B began operating in 2003 using Canadian CANDU units, and in 2002, Lingao Units 1 and 2, also located in Guangdong Province, and equipped with 990 MW Framatome units similar to those in Daya Bay went into operation. In May 2006, the first unit of two Russian AES-91 power plants (equipped with 1060 MW VVER light water pressurized reactors) was connected to the grid in Tianwan (Lianyungang). In 2007, the both plants in Tianwan are expected to enter commercial operation. The total capacity of all operating nuclear power plants amounts to 7587 MW.
Tab. 1: Nuclear power reactors in operation and under construction
| Name | Technology | Location (Province) | Capacity (MW) | Start of Commercial Operation |
| Operational Qinshan 1 Qinshan 2 A Qinshan 2 B Qinshan 3 A Qinshan 3 B Daya Bay 1 Daya Bay 2 Lingao 1 Lingao 2 Tianwan 1 |
PWR, China PWR, China PWR, China PHWR, Canada PHWR, Canada PWR, France PWR, France PWR, France PWR, France VVER, Russia |
Zhejiang Zhejiang Zhejiang Zhejiang Zhejiang Guangdong Guangdong Guangdong Guangdong Jiangsu |
300 642 642 728 728 984 984 990 990 1,060 |
1994 2002 2004 2002 2003 1994 1994 2002 2003 2007 |
| Under construction Tianwan 2 Shidaowan Lingao 3 Lingao 4 Qinshan 6 Qinshan 7 |
VVER, Russia HTR-PM China PWR, France PWR France PWR PWR |
Jiangsu Shandong Guangdong Guangdong Zhejiang Zhejiang |
1,060 200 935 935 610 610 |
2007 2010 2010 2011 2011 2011 |
Source: World Nuclear Association (2007), www.world-nuclear.org/info/inf63.html
Organisation
A number of institutions are in charge of the civilian nuclear program. The National Development and Reform Commission (NRDC) sets the targets for energy development (and the share of nuclear energy) and approves nuclear projects. The China Atomic Energy Authority (CAEA) is in charge of civil nuclear programs and international cooperation in this field. The CAEA is also responsible for feasibility studies for planned nuclear power plants. The National Nuclear Safety Administration oversees safety regulations and their compatibility with international agreements, whereas the State Environmental Protection Administration (SEPA), the Chinese Environmental Ministry is in charge of environmental impact assessment and monitoring radioactive pollution.
Today there are several Chinese corporations active in the nuclear power sector. The China National Nuclear Corporation (CNNC) is involved in R & D, uranium exploration and mining, enrichment, fuel fabrication, reprocessing and waste disposal. CNNC's subsidiary China Nuclear Energy Industry Corp. (CNEIC) is in charge of uranium fuel trading. The China Nuclear Engineering and Construction (CNEC) group is responsible for plant construction. Another leading company in this field is the Guangdong Nuclear Power Group (CGNPG) that runs the Daya Bay plant and will be in charge of the Yangqiang project. The China Huaneng Group (CHNG) one of the five leading power companies in China is not involved in the nuclear business so far but helds a major share in a consortium for the Shidaowan demonstration plant for small scale high-temperature gas cooled reactors.
The Chinese nuclear industry has influential supporters in the Chinese government. Former premier Li Peng, an engineer and energy expert, was one of the strong promoters of the early nuclear power projects. He also managed to find some of his family members key positions in the nuclear power business and the power industry. For many years Mr. Li Peng's wife Zhu Lin hold the position of a general manager of the Guangdong Nuclear Power Group. Today Mr. Li Peng's son Li Xiaopeng is the director general of the China Huaneng Group, a company that recently joined the nuclear club.
Front and back end of the fuel cycle
Chinas has its own uranium resources, but also needs to import supplies from other countries. The current production of 840 t uranium from local mines in Western China (Xinjiang Autonomous Region, Shaanxi, Guangxi, Liaoning) supplies about half of the current demand, the remaining half having to be imported from Kazakhstan, Russia and Namibia. In April 2006, prime minister Wen Jiabao's state visit to Australia, which holds 40 percent of the world's uranium reserves, resulted in the Nuclear Transfer Agreement and Nuclear Co-operation Agreement that allows Australia to supply uranium to China (*4).
Chinese national uranium mines, most of them located in the less developed western regions, are reported to be causing environmental pollution and health risks to local residents. Cases of radiation poisoning affecting local residents have, for example, been reported from uranium mine No. 792 in Diebu County, Gansu Province. The mine opened in 1967, run by the military, annually milled between 140 and 180 tons of uranium bearing rocks. In 2002, the mine officially was closed down due to ore exhaustion and outdated equipment. However, it continues operation as a private owned mine operated by Longjiang Nuclear Ltd. Since 1988, Sun Xiaodi, a former employee repeatedly travelled to Beijing and met with foreign journalists to make the case public. In early 2005, he was detained by public security forces. He was released later that year, but ever since remains under police surveillance. In 2006 Sun Xiaodi was awarded with the international Nuclear-Free Future Resistance Award. (*5).
Uranium enrichment is mainly undertaken either within China or by the company Urenco in Europe. Within China, facilities in Chengdu (Sichuan Province), Lanzhou (Gansu Province) and Hanzhong (Shanxi) provide uranium enrichment for civilian purposes. Fabrication of PWR fuel is done at a plant in Sichuan Province, another plant in Inner Mongolia will provide PHWR fuel to the CANDU type plants.
Planned spent fuel activities include at-reactor storage, away from reactor storage as well as reprocessing. A centralized storage facility with a capacity of 550 tons of fuel has been in operation since 2000 in Lanzhou (Gansu Province). A pilot (50 t/yr) reprocessing plant using the Purex process was opened in 2006 at Lanzhou. This is capable of expansion to 100 t/yr and will be fully operational in 2008. A large commercial reprocessing plant based on indigenous advanced technology is planned to follow and expected to begin operation about 2020.
As many other nuclear power nations China so far has not found a solution for permanent disposal of nuclear waste. In 2005, Chinese experts with German experts from the Technical University of Clausthal began assessing potential repository sites in the Gobi desert (Gansu Province) (*6). Repository sites are planned to be fully operational by around 2030. No information how the fuel will be transported to reprocessing and repository sites is available.
The future of nuclear power industries
Up to the late 1990s, China's nuclear industry saw only modest development. Starting in 1997 and for the following six years, as a result of the Asian crisis many potential projects were put on hold because of concerns of excess capacity, safety and the high costs of nuclear power. Nuclear plans were resumed with the 10th Five-Year Plan (2001-2005), which explicitly incorporated the development of nuclear energy as one major goal within China's energy strategy. Under pressure as a result of severe power shortages that have affected China's main industrial centres in the eastern coastal regions in recent years, the national authority responsible for China's energy policy, the National Development and Reform Commission (NDRC), has adjusted the nuclear development plans. The latest plan calls for China's nuclear power industry to provide 4% of overall power supply and an increase of installed capacities to 41-46 GW. This will require the construction of over 30 new nuclear power plants.
Tab. 2: Planned nuclear power stations in China
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Source: World Nuclear Association 2007
Most of the proposed sites are located in the densely populated eastern coastal regions, but also include some interior location. As many as 16 provinces have announced intentions to built nuclear power plants during the twelfth 5 year plan (2011-2015).
According to EIA projections, in 2025, China will become one of the world's leading nuclear power nations:
Tab. 3: Projected nuclear-generated electricity consumption 1990-2025 (in billion kilowatt hours)
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Source: Energy Information Administration (EIA)
International suppliers of nuclear technologies that have been suffering from a worldwide slowdown of nuclear development are now eagerly looking at China's ambitious nuclear power plans and for new business opportunities. This is especially the case for US American companies, which have only since 1997 been allowed to export civilian nuclear technologies to China as a result of previous American trade restrictions. At present, more than 300 international companies, including companies from Canada, Germany, Japan, Spain and the USA are supplying technologies or know-how to Chinese nuclear power projects. In September 2005, the Atomic Energy of Canada (AECL) signed a technology development agreement with the China National Nuclear Corporation (CNNC), which opened up new opportunities for supplying more Candu-6 reactors. Germany had talks on delivering a MOX uranium-plutonium plant (which had originally been built for Germany, but following public protests has never been operated in Germany). The talks came to a halt due to strong opposition within the German government and public.
Since 2004, the bidding process for the Sanmen (Zhejiang) and Yanjiang (Guangdong) plants had the US Westinghouse, the French Areva and the Russian Atomstroyexport involved, with the US, French and Russian governments reported to having been giving support. The US Export-Import Bank approved 5 billion US$ loan guarantees for the Westinghouse bid, and the French Coface gave similar guarantees for the support of Areva's bid. The US Nuclear Regulatory Commission gave approval for Westinghouse to export the respective equipment. The final decision was a kind of surprise. In December 2006 the Chinese announced a tentative agreement with Westinghouse. But after a strong intervention by France, the decision was altered and the projects divided between the two western competitors. Westinghouse Electric won a US$ 6 billion worth contract to build four of its AP 1000 reactors in Sanmen and in Haiyang north of Shanghai (another projected plant, which was not part of original bidding). The French Areva won a US$ 5 billion worth contract to built two plants in Yanjiang (Guangdong). Construction is planned to start in 2009, the first plants are expected to be completed in 2013. In addition Areva also agreed to supply uranium to China (*7).
In the long run, China aims to rely more on home-grown nuclear technologies. This will on the one hand include the duplication of imported technologies, but on the other hand also the development of its own technologies, such as the CNP (China Nuclear Power) 1000 and 1500 models. The CNP 1000 technology will be used for the two 1,000 MW reactors built in Fangjiashan, Zhejiang province (*8).
China's nuclear research institutes and companies claim to have achieved high standards. Qinghua University's Institute of Nuclear Energy (INET) has developed a 10 MWt high-temperature gas-cooled reactor (HTR-10). In 2006, the China Huaneng Group, the country's largest power company launched the construction of a first nuclear power plant with using high temperature gas-cooled reactors (HTR-PM) developed in China. The demonstration plant Shidaowan is located in Rongcheng, Shandong province and will have an installed capacity of 200 MW. 18 further units are planned to be built either in Rongsheng or in Weihai, Shandong province. These smaller reactors are planned to supply energy for desalinisation plants. With Russian assistance China is also working on the development of fast reactors. The development of a domestic nuclear industry will enable China to export their technologies to other countries. China has already been involved in the construction of a smaller plant in Chasma in Pakistan, and in November 2006, during a state visit of president Hu Jintao to Pakistan talks were held to cooperate on more nuclear power projects in the future.
The Chinese public has been informed about the planned massive development of national nuclear industries, but Chinese media are quick to assure that nuclear power is a clean and safe energy source. Although China has seen a promising development of environmental NGOs in recent years, with countless groups mushrooming all over the country, none of them seems to have been able to openly address concerns related to nuclear issues. According to the China Atomic Energy Authority "China established a safety and supervision and management systems and nuclear safety standards in line with international standards. A three-level nuclear power plant related nuclear accident emergency management system is in place..." (*9) Details about this system have not been made public. There are also regulations on the safety of radioactive isotope and radiation devices, which require immediate and accurate reports on accidents. However, as long as transparency and access to information is not given, and environmental NGOs are not able to address issues of nuclear safety, concerns remain about adequate handling of nuclear accidents, the handling of nuclear wastes and the safety in uranium mines, enrichment facilities and disposal sites, the majority of which are located in China's less developed western regions.
Sources:
*1 - Szymanski, Tauna: "China's Take on Climate Change", American Bar Association Sustainable Development, Ecosystems and Climate Change Committee newsletter, May 2006
*2 - South China Morning Post, Nov. 8, 2006: "China overtake US in gas2 emissions by 2009"
*3 - see *1
*4 - South China Morning Post April 4, 2006, p. A4: "Focus on free trade after uranium deal"
*5 - Nuclear Monitor 650, December 15, 2006: "2006 Nuclear-Free Future Resistance Award: Sun Xiaodi"
*6 - Spiegel online May 14, 2005, Frühlingsdorf, Michael: Atomare Endlager - Deutsche Hilfe für Chinas strahelende Zukunft
*7 - www.chinaview.cn February 6, 2007: "China's nuclear energy plants to power up" & www.post-gazette.com March 2, 2007: "Westinghouse nails down China nuclear deal." By Dan Fitzpatrick
*8 - www.chinaview.cn February 6, 2007, "China's nuclear energy plants to power up"
*9- China Atomic Energy Authority: "Present Situation and Development Prospect of Peaceful Uses of Nuclear Energy in China", Beijing Review, Oct. 14, 2004
Source and contact: Eva Sternfeld, China Environment & Sustainable Development Reference and Research Center (CESDRRC), The author can be contacted at aiwastar@163bj.com, cesdrrc@gmx.net
www.chinaeol.net/cesdrrc
China postpones climate report
China has postponed the release of its National Plan on Climate Change, amidst reports that the document for the first time discloses internal targets for carbon dioxide (CO2) emissions. According to one of the reports authors, Xu Huaqing, the document aims to discuss how China should deal with greenhouse gases over the next five years. Press reports on the National Plan suggest that, while recognizing that the country faces an average temperature increase of 1.2-2.1 degrees C and associated environmental and economic impacts, it is ready to take only limited action to curb its emissions. The main proposal, to reduce CO2 emissions per unit of gross domestic product (GDP) by 40% over the period 2000 to 2020, would be more than offset by Chinas plans to quadruple its GDP over the same period. China currently relies on coal for 70% of its energy needs, and, according to the International Energy Agency, is poised to overtake the USA as the worlds largest emitter of CO2 either this year or next.
World Nuclear News, 24 April 2007
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