China is affected by the rise of the British nuclear power market

Recently, the British government signed a nuclear power plant transaction worth about 26 billion U.S. dollars (about RMB 158.4 billion) with the French Electricity Group (EDF). It is reported that this is the first nuclear power plant constructed in Europe since the nuclear disaster in Fukushima, Japan.

It is understood that the EDF-led group will build two European pressurized water reactors designed by Areva in the southwestern UK in Hinckley, with a cost of approximately US$26 billion. It is scheduled to begin operations in 2023 for 35 years. .

The two reactors will each have 1.6 GW of generating capacity, which together will account for nearly 7% of the total electricity generated in the UK, equivalent to supplying 7 million households with electricity. The UK will also increase energy security, because in the next few decades the United Kingdom will Eliminated 20% of the old and polluting power plants.

Since the nuclear disaster at the Fukushima nuclear power plant occurred two years ago, Germany and Japan have stopped plans for the construction of new nuclear power, and many countries are still on the sidelines. The signing of this nuclear power transaction in the UK came at a time when all sectors criticized the British government for providing green energy subsidies that led to the increase in electricity prices.

EDF will hold 45% to 50% of the shares of the Group. The China General Nuclear Power Group (CGN), which has long-term cooperation with EDF, may hold 30% to 40% of the total shares with China National Nuclear Corporation (CNNC), while Areva holds 10%.

The rise of the British nuclear power market may be a good news for Chinese nuclear power companies. Because the British Chancellor of the Exchequer George Osborne said that the United Kingdom will approve companies from the world’s second largest economy to purchase a partial stake in British nuclear power plants. This means that China will have the opportunity to play an important role in the future development of nuclear power in the United Kingdom. “This decision paves the way for Chinese companies to purchase some or all of the shares of British nuclear plants.” Some media commented that

Osborne also said that the British government welcomes Chinese companies to invest in the UK’s next-generation nuclear power construction. Although the Chinese company’s investment in British nuclear power projects may initially only account for minority stakes, with the establishment of new nuclear power plants, the proportion of shares may increase to most.

"The United Kingdom is the first country in the world to develop civil nuclear power, and China is the world's fastest growing civilian nuclear power. This is an important part of the government's plan to develop the next generation of nuclear energy in the UK. This means that it will be able to bring about More investment and employment opportunities, as well as providing consumers with cheaper long-term energy costs."

It is understood that China and the UK have signed a new memorandum of understanding in the field of civil nuclear energy cooperation. The memorandum sets out a strategic framework for nuclear energy cooperation between the two sides in the fields of investment, technology, construction and application of professional knowledge.

"The British nuclear power market welcomes the entry of Chinese companies. The biggest reason is to value the capital of Chinese nuclear power companies." A nuclear power expert told reporters. "However, for China's nuclear power exports, the mere participation of funds is not enough." Whether Chinese nuclear power companies can play a big role in the UK nuclear power market, ultimately also needs to see the comprehensive competitiveness of Chinese nuclear power companies in the international market.