role of nuclear power and renewable energy after 18th national congress · 4 key policy &...

Role of nuclear power and

renewable energy after

18th National Congress

SH Chan, JP

Managing Director – China

22 May 2014, Hong Kong

2

Consistent demand growth in China’s energy

market

Million toe

Primary energy consumption

grows at 5.7% per year on

average

© All rights reserved

Electricity consumption

grows at 9.3% per year on

average

TWh

3

Energy mix dominated by fossil fuels

Oil: 18%

Gas: 5%

Coal: 68%

Hydro: 7%

Nuclear: 1%

Other RE: 1%

Primary Energy Mix 2012

Thermal: 80.4%

Hydro: 15.0%

Nuclear: 2.1%

Wind: 2.5%

Electricity Mix 2013


The result is China has become the largest CO2 emitter in the world since 2007.

US EIA projection for 2030 :

China 11,700 million tonnes

US 7,700 million tonnes

4

Key policy & directives from 18th CPC National

Congress

“We should launch a revolution in energy

production and consumption, impose a

ceiling on total energy consumption, save

energy and reduce its consumption. We

should support the development of energy-

efficient and low-carbon industries, new

energy sources and renewable energy

sources and ensure China's energy

security.”

Report to the 18th National Congress of the Communist

Party of China by Hu Jintao on 16 Nov 2012

5

State Energy Commission meeting

Reform China’s energy structure and achieve

greener development

Push forward energy production and

consumption reform

Embark on new nuclear power plants with

state-of-the-art safety measures on the coast at

proper time

Outlined by Chinese Premier Li Keqiang at 18 April 2014 meeting

Build hydro, wind and solar power stations and ultra-high-voltage

transmission lines to transmit power from west to east

Boost development of electric cars and upgrade coal burning power

generators that fail to meet emission cut requirements

Develop unconventional oil and gas, including shale gas, shale oil,

coalbed methane and tight gas

6

New policy directions


By 2020:

Reduce CO2 emissions per capita by 40 - 45% compared to 2005

Increase renewables to 15% of primary energy consumption

Increase nuclear to 4% of electricity generation (2% primary energy)

Increase use of clean coal-fired power generation


Coal-fired : 67%

Wind: 9%

Hydro: 18%

Other REs 3% Nuclear:

3%

Installed Capacity in China - 2020 (Total: ~1,700 GW)

Coal-fired : 69%

Wind: 6%

Hydro: 23%

Other REs 1% Nuclear : 1%

Installed Capacity in China - 2013 (Total: ~1,247 GW)

7

Tianwan田灣

Qinshan

秦山

Sanmen

三門

Fuqing福清

Daya Bay大亞灣

Taishan台山

Yangjiang

陽江

Ningde寧德

Lingao嶺澳 Fangchanggang

防城港

Changjiang昌江

Hongyanhe

紅沿河

Haiyang 海陽

XuDaiBao

徐大堡

Nanyang 南陽

Xianning

咸寧

Wuhu

蕪湖

Nanchong

南充 Taohuajiang

桃花江

Shidaowan 石島灣

Pengze彭澤

Lufeng陸豐 Shaoguan韶關

About half will be in Guangdong:

-lack of local energy resources

-heavy load centres

Nuclear power in China - overview

Status (30/4/2014) Reactors Gross Capacity

In Operation 20 18.1GW

Under Construction 28 30.6GW

Under Approval/Proposed


8

EU “Stress tests” completed for all nuclear facilities with areas for improvement

identified in EU peer reviews

France Comprehensive review confirmed nuclear safety. Continuing nuclear development

though considering a lower nuclear percentage

UK Comprehensive review confirmed nuclear safety. Continuing nuclear development

with one proposed build and eight available sites

US Regulatory checks confirmed safety. Continuing nuclear development with four

new units under construction

Russia Reaffirmed commitment to nuclear power with emphasis on safety

Germany To complete nuclear phase out by 2022 while planning for replacement with

renewables and major transmission development

Italy Referendum voted to continue moratorium on nuclear power. Need to rely on

power import

Belgium To shutdown nuclear power plants by 2025 to “create a favourable investment

climate”

Switzerland Parliament intended to phase out nuclear power by 2034

Japan Plants shutdown. Government supports nuclear resumption subject to public

understanding and regulatory safety review

Taiwan Construction of fourth nuclear power station came to halt due to local opposition.

Fate of project to be decided by public referendum

Post Fukushima - latest world development

9

Comprehensive Safety Review on all civil nuclear

facilities initiated in Mar 2011 and completed in Aug

2011

State Council approved reports in 2012 confirming

safety compliance of Chinese nuclear facilities

Recommended further improvements on plant

safety and emergency management which are

implemented according to specific timelines

Nuclear safety as top priority with more

stringent safety criteria set for new

stations. But China’s direction of

nuclear power development remains

unchanged

Post Fukushima – PRC State Council directives


10

Third generation reactors have incorporated evolutionary improvements

including :

enhanced fuel technology

superior thermal efficiency

passive safety systems

standardized designs for reduced maintenance and capital costs

Taishan EPR Sanmen AP1000

Hualong

One

CAP1000

ACP 1000 /

ACPR 1000+

Third generation technology

11

Emergency preparedness

A new national emergency response team is being assembled

to respond to nuclear emergencies, which comes in addition to

16 existing provincial nuclear emergency commissions and

emergency response departments at each of China's nuclear

facilities

CGN, CNNC and CPI signed agreement for emergency mutual

support

“Go Global” policy

May 2014 - Romania’s Nuclearelectrica signed agreement with

CGN to explore building two new reactors at Cernavoda

Mar 2014 - CNNC and CGN confirmed investments in UK’s

Hinkley Point C project

2013 - CNNC announced export agreement for a Pakistani

power station involving ACC1000/ Hualong 1 technology

Latest developments

Hinkley Point C

12

Nuclear power development essential for China to control CO2

emissions, reduce pollution and ensure energy security

China has developed comprehensive nuclear supply chain with

capability in uranium acquisition, enrichment, fuel fabrication, power

generation and spent fuel management

Each stage is supported by R&D, manufacture, construction and

operation, often bringing in overseas technology transfer

Lessons learnt from Fukushima led to higher safety requirements and

greater public communications efforts

Daya Bay as a successful example with good safety performance and

continual effort to increase transparency

Nuclear outlook


13

Renewable in China - hydropower

Installed generating capacity of hydropower reached 280 GW in 2013

- ranked 1st in the world

To increase non-fossil energy

consumption to 15% by 2020,

more than half will come from

hydropower

Less than 30% of China's

hydropower resources are

currently utilized

China will speed up construction

of large hydropower stations on

key rivers, develop medium- and

small-sized hydropower stations

based on local conditions, and

construct pumped-storage power

stations


做好生態保護和移民安置的基礎上，有序開工合理的水電項目

14

Renewable in China - wind power

Installed generating capacity connected with power grids reached 75

GW in 2013 – again 1st in the world

Forecast wind power capacity reaching 200 GW by 2020, 400 GW by

2030 and 1,000 GW by 2050. Wind power will meet 17% of electricity

demand by 2050


Source: IEA

15

Challenges for wind power

Grid restriction that curtails output


16

Challenges for wind power


Imbalance in supply and demand

17

Renewable in China – solar power

14 GW to be added in 2014 with 6 GW from ground-mounted infrastructure and

8 GW from distributed PV systems

This target faces many challenges including project financing difficulties,

implementation issues for distributed solar power, grid curtailment, etc.


Embryo

Stage Booming

Stage Steady

Stage

18

Renewable – challenges and opportunities

Hydro

• Need to balance benefit with impact on ecology and water resources

• Resettlement of local communities

Wind

• Uphold quality and competitiveness while expanding towards larger

machines (> 2 MW) and off-shore

• Maintain balance in growth between manufacture and installation

• Develop and reinforce transmission grid and encourage distributed

consumption to minimize wastage

Solar

• Innovation for better efficiency

• Maintain balance in growth between manufacture and installation

• Develop and reinforce transmission grid and encourage distributed

consumption to minimize wastage


19

Summary

Besides more efficient energy use, nuclear, hydro and new renewables

will play increasingly important role to attain CO2 reduction target

Development of renewables will require government subsidy in form of

feed in tariff and UHV network

Continuous diligence is necessary for each of the above energy types:


to introduce higher safety level

to mitigate ecological and

social impact

to improve quality and

introduce innovation

to instigate more judicious

planning

to develop the necessary

expertise

role of nuclear power and renewable energy after 18th national congress · 4 key policy &...

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