Massive market for domestic suppliers

China's ambitious plan to develop nuclear power and its desire to depend less on imported equipment will mean a bonanza for domestic nuclear power equipment suppliers, according to industry watchers.

The first phase of the Taishan Nuclear Power Plant alone will mean a market of about 25 billion yuan, at least half of which will go to domestic suppliers, according to a recent report of a local newspaper.

"The market potential will just multiply when other nuclear power projects in Guangdong are taken into consideration, not to mention those elsewhere across the nation or the overseas market," Guangzhou-based South Metropolis Daily recently quoted local analysts as saying.

Guangdong's market demand for nuclear power equipment is estimated at about 100 billion yuan with other nuclear power projects in Taishan's neighboring city of Yangjiang, in Shanwei in the east of the province and in Shenzhen.

The province aims to have a total installed capacity surpassing 24 gW with other projects with 10 gW planned for construction by 2020.

"China has a ready market for nuclear power equipment suppliers and the unprecedented golden time has come for them," noted Xue Xinmin, a nuclear power expert with the National Development and Reform Commission's energy research institute.

The expert noted China had 11 nuclear power units in operation at the end of 2009, with another 20 units under construction.

Their installed capacity of 9.8 gW comprised a mere 1.04 percent of the total installed power generation capacity in the nation.

"The door is wide open for nuclear power equipment suppliers and the market prospect is guaranteed by State policy," Xue said, basing his upbeat view on the nation's huge investment to increase nuclear power to 5 percent of total installed capacity by 2020.

According to a recent report in Beijing-based Economic Information Daily, China's investment in nuclear power projects will reach 1 trillion yuan in the coming decade.

Market demand for China-made nuclear islands is estimated at 170 billion yuan while conventional islands will need 120 billion yuan and auxiliary equipment, will cost 110 billion yuan by 2020.

Imported auxiliary equipment is estimated to comprise about 10 percent of all related equipment in China by 2020.

(China Daily 06/09/2010 page15)