Workers have started to dig a hole for housing one of the two new generating units planned to add at the first phase of the Qinshan nuclear power plant, the first Chinese facility of its kind.

The excavation work, which began early this month, will be finished by late July, according to a source from China National Nuclear Corp.

Two pressurized reactors — the application of the most-sophisticated and widely-accepted nuclear power technology in the world — would be installed at Fangjiashan, Haiyan, on the northern coast of Hangzhou Bay, Zhejiang Province, not far from Shanghai. Each generating unit would have an installed capacity of1 million kilowatts.

The State Environmental Protection Administration, which was promoted to a full ministry known as the Environmental Protection Ministry this year, approved two other reports involving the environmental impact and location safety over the proposed expansion.

The two generating units will be in place and be made ready for power generation by 2013 and 2014.

The first phase of Qinshan Nuclear Power Plant was the first nuclear power plant on the Chinese mainland built independently by domestic engineers.

Construction of the plant began in 1985. It was built with a 300,000 kilowatt prototype reactor with a lifespan of 30 years. It started generating power in 1991.

It has so far produced 31 billion kwh of electricity, and generated 9.6 billion yuan (about 1.28 billion U.S. dollars) in revenue and paid 1.8 billion yuan in tax.

The plant also has second and third phases.

Chinese engineers have installed two generating units in the second phase and have been preparing for adding at least two more generating units there.

The third phase houses two Canadian CANDU heavy-water reactors.

Some of the world`s leading nuclear energy companies have gathered in Beijing in the hope of reaping contracts from China`s planned expansion of its nuclear power industry.

Almost 200 exhibitors from 14 countries are attending the 10th China International Nuclear Industry Exhibition opened in Beijing on Tuesday and runs until Friday.

Major international companies, such as the French Nuclear Energy Society (SFEN), Atomic Energy of Canada Ltd., and Westinghouse Electric Company, will hold 10 meetings at the exhibition to exchange information with Chinese experts concerning nuclear power generation, environmental protection, equipment building and technical standards.

"The exhibition provides good opportunities for us to communicate with Chinese companies," said Timothy Collier, vice-president of Westinghouse.

China`s decision to build more nuclear power stations would mean the introduction of more green energy, he said.

China generated 62.6 billion kilowatt hours of nuclear power in2007, up 14.1 percent year-on-year, according to the China Electricity Council.

China National Nuclear Corporation (CNNC) manager Kang Rixin underlined the potential of Chinese market, saying nuclear energy was an effective measure for China to combat energy shortages and environmental pollution.

The exhibition has been held every two years since 1989. It works as a platform of technical communication, and an important channel for China to learn and share advanced technologies and equipment.

China has 11 nuclear power plants with a combined installed capacity of 9.08 million kilowatts. Three use domestic technology, two are based on Russian technology, four use French technology and two are Canadian-designed. All use second generation nuclear technologies.

China Huaneng Group, the country`s largest power producer, said it will boost the development of new energy such as wind and solar power, in line with the government`s thrust for renewable energy.

The company has accelerated its development of wind power in Guangdong, Jilin, Shandong, Inner Mongolia and Hainan, said Huaneng President Li Xiaopeng.

"The company`s wind power projects in operation or under construction now have a total capacity of 1,347 mW," said Li. "We are also developing solar power projects in the Northwest and biomass power projects in Jilin province in Northeast China."

Besides wind, solar and biomass power, the company will also increase its capacity of hydropower, thermal and nuclear power, said Li.

Last year, the company`s Yuhuan power plant in Zhejiang started commercial operation. With four 1,000 mW ultra supercritical units, it is one of the world`s most energy-efficient and environmentally friendly power generating projects in the world.

The company is also developing China`s first nuclear plant using high-temperature, gas-cooled technology. The 200 mW Shidaowan plant in Shandong involves a total investment of 3 billion yuan.

Huaneng has launched the GreenGen project, the first near-zero-emission integrated gasification combined cycle (IGCC) power plant in China. Located in Tianjin, the project has a capacity of 250 mW. Last year, US coal company Peabody became an equity partner in the project.

Along with giving a push to new energy, Huaneng will accelerate closures of small-scale power generating units. In the first two months of this year, the company has closed down power units with a total capacity of 100 mW. By the end of 2007, the company closed down a number of small-scale power units with a total capacity of 2,391 mW.

In 2007, the company`s sulfur dioxide emissions were reduced by 8.88 percent. By the end of last year, 57 percent of the company`s power units had been installed with de-sulfur equipments.

Last year, the company signed an agreement with the Commonwealth Scientific and Industrial Research Organisation, Australia`s national science agency, to develop clean-coal power generation and carbon capturing and storage technologies.

The collaboration includes capturing power plants` flue gases, coal gasification, coal gas purification and other generation technologies. It will also include a post-combustion capture pilot project at Huaneng Beijing thermal power plant. Post-combustion capture traps carbon dioxide from flue gases of power plants.

China`s installed capacity of wind power will hit 10 million kilowatt this year, and the figure is expected to double in 2010, a senior official said here on Sunday.

To develop clean energy, China will expand the installed capacity of nuclear power, making it account for more than 5 percent of the national total power installed capacity by the year 2020, said vice chairman of the National Development and Reform Commission Zhang Guobao.

China has vowed to develop nuclear power in its 11th five-year plan for economic and social development (2006-2010), with the aim to realize 40,000 megawatt of operating installed capacity by 2020.

Currently, China`s operating installed capacity of nuclear power stations stands at 8,600 megawatt.

China should become a global leader in energy efficiency by 2050 when nuclear power and renewable energy is likely to account for at least half of the country`s energy mix.

A senior State leader yesterday urged policymakers to come up with strengthened efforts to draw up such a long-term "strategic roadmap" for China`s energy industry while focusing on clean energy development.

"We should have a clear strategic roadmap," said Lu Yongxiang, vice-chairman of the Standing Committee of the 11th National People`s Congress. "It is not only for 2020, but also for 2030 and 2050."

"By 2050, China should become a global leader in energy efficiency while advocating cleaner energy development," Lu, who is also president of the Chinese Academy of Sciences, said.

To reduce environmental impact and save resources, he said China should decrease its use of fossil fuels and accelerate the restructuring of its energy consumption mix during its rapid industrialization and urbanization.

In his own roadmap, Lu said nuclear energy may consist of 25 to 30 percent of China`s total energy consumption by 2050, with renewable energy such as hydro power likely to account for 20 to 25 percent of China`s energy consumption by that time.

"By then, our fossil energy dependence can be reduced to 50 percent and I personally believe this goal should be reachable," Lu said.

Energy ceiling

In another development, latest research has shown that China`s energy consumption is very likely to reach 3.1 billion tons of standard coal equivalent by 2010, 100 million tons more than the earlier ceiling.

And by 2020, when China is expected to realize its goal of becoming a well-off society, the country`s energy consumption will reach 4.3 billion tons of standard coal equivalents.

Lu Zhongyuan, vice-president of the Development Research Center of the State Council, described the numbers as "the most likely scenario" for China`s energy consumption.

"Growing energy and resources demand has already become China`s top challenge for further development," Lu said at the three-day China Development Forum, which ends today in Beijing.

The government has taken various measures in recent years, such as linking energy-saving performance to decide the career future of officials and the leaders of the State-owned enterprises, in order to curb the growth of energy consumption.

Last year, the country consumed 2.65 billion tons of standard coal equivalent, up 7.8 percent from the year before, even as consumption growth slowed 1.81 percent year-on-year.

The growth rate has largely slowed down compared with the double-digit pace in the earlier years.

State Councilor Ma Kai said earlier that China`s economic development is too fast for the country to realize its targeted energy consumption ceiling of 3 billion tons of coal equivalent by 2010.

New Energy Finance Ltd and the Chinese Renewable Energy Industries Association (CREIA) have jointly released the `Top Ten Renewable Energy Developments in China in 2007` at the CREIA`s annual meeting in Beijing.

The developments include:

1. China releases the Medium to Long Term Renewable Energy Development Plan, setting firm targets for all major renewable energy sectors for 2010 and 2020 respectively.

2. China implements a detailed plan to compensate grid companies for the extra cost of purchasing renewable power via a quota exchange system.

3. China reforms the bidding system for the fifth round national concession wind projects to discourage cutthroat price competition. Project developers who field bids closest to the average bid now score highest in the price evaluation section. On a provincial level, Guangdong becomes the first province in China to set a fixed feed-in tariff for wind power at CNY 0.68 ($0.09588) per kWh.

4. PV cell production in China (not including Taiwan Province) exceeds the US in 2007, becoming third in the world behind Japan and Germany.

5. China makes a breakthrough in installations of domestically manufactured wind turbines in 2007. Wind turbines from domestic manufacturers account for 56% of all installed turbines in China in 2007, exceeding those made by foreign and joint-venture companies for the first time.

6. China`s first thousand-tonne polysilicon plant is commissioned in Leshan, Sichuan province, marking the beginning of the mass production of this raw material in the country.

7. Installed wind capacity in China reaches 6GW at the end of 2007. One quarter of this or 1.5GW is installed in Inner Mongolia Autonomous Region, making it China`s first province/region to have more than 1GW installed.

8. China kicks off development of grid-connected utility scale PV projects with the NDRC and Ministry of Finance implementing a joint effort to build larger than 5MW (inclusive) solar PV plants in western China.

9. Jinan, in Shandong province, hosts the first central government sponsored National Solar Heat Use Congress in China, which aims to popularise the installation of solar water heaters in buildings across the country.

10. China halts the approval of new grain-based bioethanol projects and enacts policies to encourage non-grain biofuels development.

The country will accelerate the construction of nuclear power plants, particularly in the coastal regions, to ease mounting pressures on coal transportation from the northern regions and electricity transmission from west China, a top energy official said Sunday.

The move, which could see nuclear power making up a minimum of 5 percent of the country`s total energy mix in 2020, from the current level of less than 2 percent, was announced yesterday by Zhang Guobao, chief of the newly elevated National Energy Bureau.

In 2005, the authorities had planned for the amount to hit 4 percent by 2020.

"We have decided to readjust our earlier goal for nuclear power development, and by 2020 the ratio will be at least 5 percent," said Zhang, whose bureau was elevated to national level during the recent administrative reshuffle approved at the annual session of National People`s Congress that closed last Tuesday.

The bureau remains part of the economic planning authority, the National Development and Reform Commission (NDRC).

Zhang revealed the latest target for nuclear power at a three-day China Development Forum in Beijing, which ends today.

He said the readjustment was decided after the country`s central and southern regions were devastated by heavy snow in January and February, where trunk railways and power grids were severely damaged.

Zhang, who is also NDRC vice-minister, said the snow havoc had shown the country`s energy security to be under threat from a "fragile supply-demand balance" of coal, which is mainly transported from northern China to power the economic hubs in the southern and eastern regions.

He said the authorities had weighed the gains and risks from speeding up the construction of nuclear power plants.

"All sides (policymakers and the public) have reached the consensus that nuclear energy is an ideal option for China," he said.

While the choosing of sites for nuclear plants in the inland areas is being quickened, Zhang said construction of the power plants should first be sped up in energy-intensive coastal areas.

He said that with the industrialization of key technologies and proper waste disposal, the country was capable of realizing the increased use of nuclear power.

Zhang added that even as the country had command of key technologies, it would strengthen efforts in international cooperation in the sector.

China currently has 11 nuclear power plants with a combined installed capacity of 9.08 million kW. Three use domestic technology, two are based on Russian technology, four use French technology and two are Canadian-designed.

Wind power in China has already exceeded energy development plan targets and the country is set to become the world`s largest generator of wind power, Zhang said.

The Inner Mongolia autonomous region, Gansu and Jiangsu provinces have been picked to hold the country`s first batch of wind power clusters, designed to generate 10 million kW each, Zhang said.

This is compared with about 18 million kW from the Three Gorges electricity power generators in the Yangtze River.

He said when all the wind farms are put into operation by 2013, China will surpass Germany as the world`s biggest wind power producer. Currently, Germany has the wind power capacity of 22 million kW.

With currently 74 officers in charge of the country`s energy administration, Zhang said that more staff will be recruited to his bureau to strengthen energy management.

But he added that the bureau, seen as likely to take responsibility for the planning and approval of energy projects, is not seeking to obtain the authority to control pricing in the sector.

Currently, the pricing rights of refined oil and electricity are in the hands of the NDRC`s pricing department.

"No matter who is in charge, the goal of our reform is to let the market have the final say," Zhang said.

He added that there is no immediate decision to deregulate refined oil prices.

China`s annual consumption of renewable energy will reach the equivalent of 300 million tons of standard coal by 2010, which would be 10 percent of its total annual energy consumption, under the renewable energy development plan for 2006-2010.

The plan was released on Tuesday by the National Development and Reform Commission (NDRC), the country`s top economic planning agency.

The plan says 2010 renewable energy consumption will nearly double the 2005 level, which was equivalent to 166 million tons of standard coal. That led to a reduction of 3 million tons of sulfur dioxide emissions and more than 400 million tons of carbon dioxide emissions.

Given the dearth of petroleum and natural gas resources and the large share of coal in China`s energy production, it is difficult for the nation to sustain its development and protect the environment by relying simply on fossil fuels, the NDRC said.

China boasts abundant renewable resources that could be exploited, the plan says. It says that by 2010:

– the nation will have hydropower projects with a combined installed capacity of 190 million kilowatts and wind power projects with installed capacity of 10 million kw.

– the installed capacity of bio-energy projects will reach 5.5 million kw and that of solar energy projects will be 300,000 kw.

– domestically produced hydropower equipment and solar water heaters should become competitive on global markets.

– wind power equipment manufacturers should put generating units with installed capacities of at least 1.5 million watts into mass production.

Solar cell manufacturer chairman of Nantong Qiangsheng Photovoltaic Technology Co Ltd (QS Solar), plans to add three new production lines in Nantong, Jiangsu Province, this year.

Sha Xiaolin, chairman of QS Solar, said yesterday the firm will invest a total $70 million in its four production lines, which will have a combined annual capacity of 130 mW of solar cells.

"Capital is not a problem," Sha said, adding that 10 foreign financial institutions - including Morgan Stanley, Lehman Brothers and Standard Chartered Bank - will back the project.

The manufacturer`s first production line came onstream in August last year, with an annual capacity of 12 mW of solar panels.

"Sales are good," Sha Yan, general manager of QS Solar, said. The company has signed a contract with a US firm to sell five mW of solar panels, as well as deals for two mW to South Korea and two mW to Spain.

The manufacturer has also signed a deal with Nantong`s Rudong Economy and Technology Development Zone to launch a one-mW photovoltaic solar power plant.

Construction of the plant, China`s largest, is expected to start after four months` preparation, the company`s chairman said.

The plant will cost 28 million yuan ($3.94 million) and will use 16,000 pieces of thin-film amorphous silicon solar cells to generate one mW of solar electricity. The same plant built overseas would cost 65 million yuan, he said.

Solar electricity produced at the plant will be more expensive than thermal power at three yuan per kWh.

But he said the price will drop to one yuan per kWh when more photovoltaic power plants are built.

China produced 3,000 mW of solar cells last year, but its photovoltaic materials relied heavily on imports and 90 percent of photovoltaic cells were exported to Europe, the United States and Japan.

China`s two million sq km of deserts could generate the same amount of electricity as produced by hydro, thermal and nuclear power plants combined if just one percent of it was used to build photovoltaic power plants, QS Solar said.

The manufacturer plans to have six production lines by 2009 to boost annual capacity to 340 mW, its chairman said.

By 2010, it plans to add another six production lines to reach 550 mW, he said.

"We`re talking to the Shanghai municipal government about establishing a headquarters and R&D center in the city to push forward the industry," he said.

"If things go smoothly, we`ll have about 20 experts from the United States, Europe and Australia working for us," he said.

China Guangdong Nuclear Power Group, one of the country`s two main nuclear station builders, yesterday said it plans to build China`s first inland nuclear power station in Hubei Province.

The company yesterday signed an agreement with the Hubei government for its nuclear plant, which will be located in Dafan, said a company statement.

The Hubei project is yet to be approved by the National Development and Reform Commission, a Guangdong Nuclear source said.

"We have started the preparation work for the project, but its capacity has not been decided yet," he said.

He said no decision has been taken as to which technology will be used for the project. Other sources said the station would use the AP1000 technology from Westinghouse.

Industry insiders had earlier told China Daily that the country`s first inland nuclear plant was likely to be built in Taojiang of Hunan Province.

The Taojiang project will be divided into two phases, each with a capacity of 2,000 MW.

China National Nuclear Corp, developer of the Taohuajiang project, last year entered into a joint venture, Hunan Taohuajiang Nuclear Power Ltd, with Hong Kong-based China Resources, China Three Gorges Project Corporation and Hunan Xiangtou Holdings Group.