Equipment market helps restart nuclear power

The National Development and Reform Commission formally applied to the State Council to initiate the approval of new nuclear power projects. The National Energy Administration agreed that Fujian Fuqing No. 5 and No. 6 unit engineering was adjusted to the “Hualong No. 1” technology program and then to the State Council to issue the “Energy Development Strategic Action Plan (2014-2020). (year) proposed that the construction of a new nuclear power project be launched in the eastern coastal areas in a timely manner. All this indicates that the restart of nuclear power has entered a countdown period.

Industry experts predict that by 2020, the total investment in China's nuclear power construction will reach about 300 billion yuan, of which equipment investment will be about 150 billion yuan. If the localization rate of equipment reaches 60% to 70%, domestic nuclear power equipment manufacturing companies will face huge cakes worth over 100 billion yuan.

Nuclear power restarts to countdown

On November 19, the General Office of the State Council promulgated the Notice on Printing and Distributing the Energy Development Strategic Action Plan (2014-2020). The "Notice" pointed out on the basis of the safe development of nuclear power that, on the premise of adopting the highest international safety standards and ensuring safety, timely launching new nuclear power project construction in the eastern coastal areas to study and demonstrate the construction of inland nuclear power.

The "plan" proposes that by 2020, the installed nuclear power capacity will reach 58 million kilowatts and it will reach 30 million kilowatts under construction. This is in line with the goal of the Nuclear Power Medium and Long Term Development Plan (2011-2020).

On November 3, the National Energy Administration issued a letter of reply to the report of the Fujian Provincial Development and Reform Commission and China National Nuclear Corporation, agreeing that the Fuqing No. 5 and No. 6 unit project was adjusted to the “Hualong No. 1” technical program to verify China’s autonomous third-generation nuclear power technology as soon as possible. , Build a domestic demonstration project. This has strengthened the market's expectations for the restart of nuclear power.

UBS Securities believes that the key to the follow-up of Fuqing No.5 and No. 6 units is the approval of the State Council. As senior leaders have repeatedly stressed the resumption of nuclear power projects, after the National Energy Administration confirmed the project’s technical proposal, it will be approved by the State Council. Will soon be.

According to an informed source, the National Development and Reform Commission has also formally submitted an application to the State Council for approval of new nuclear power projects. The six units reported to be officially approved for the three nuclear power plant projects are expected to be passed in November at the earliest.

Lu Xiulei, senior analyst at China Chengxin International, told reporters that the six units reported this time should be divided into three nuclear power plant projects at Hongyanhe, Shidaowan and Fuqing, with an installed capacity of approximately 7 million kilowatts.

After the Fukushima nuclear accident in 2011, China completely halted the approval of nuclear power project construction. Until October 2012, the State Council executive meeting again discussed and adopted the "Nuclear Power Safety Plan (2011-2020)", and also revised the "Mid-term and long-term nuclear power development plan (2011-2020)". According to the “Planning”, by 2020, the installed nuclear power capacity will reach 58 million kilowatts, and it will reach 30 million kilowatts or more under construction.

According to statistics, at present, there are 20 nuclear power units that have been put into commercial operation in China, and are distributed in seven nuclear power bases such as Qinshan, Lingao, Dayawan, Tianwan, Ningde, Hongyanhe and Yangjiang. At the same time, there are 28 nuclear power units under construction. The total installed capacity of the operating and construction units reached 48 million kilowatts.

The Nuclear Power Operation of the third quarter of 2014 released by the China Nuclear Energy Association revealed that the cumulative power generation of nuclear power in the country totaled 37.653 billion kwh, which accounted for approximately 2.59% of the country’s cumulative power generation.

According to the national energy structure adjustment plan, the State Council’s leading group for nuclear power autonomy proposes that by 2020 nuclear power accounts for 4% of the country’s total installed power generation capacity and 6% of the total power generation, that is, nuclear power is put into operation. The scale will reach 36 to 40 million kilowatts.

"By 2020, the total investment in nuclear power construction will reach about 300 billion yuan, of which investment in equipment will be about 150 billion yuan. If the localization rate of equipment reaches 60%-70%, then domestic nuclear power equipment manufacturing enterprises will face huge amounts of over 100 billion yuan. Cake." At the China Nuclear Power Localization Forum, a participant said that opportunities for the nuclear power equipment industry have come!

The person in charge of a previous nuclear power equipment company once told reporters that this year is the most difficult year for the company. The construction project orders have already been completed similarly. If the new nuclear power project approval cannot be restarted next year, many companies will face “disabled food”. "No orders can be made.

Equipment manufacturers actively preparing for the battle

Xu Lianyi, director of the China National Machinery Industry Federation Nuclear Power Office, told reporters that companies are now very active in manufacturing nuclear power equipment. When a reporter asked whether this was a profit-taking consideration for the company, Xu Lianyi said, “Not exactly the reason for the profit. The production of nuclear power equipment is highly technical, and only mass production can be effective. Enterprises are more about viewing nuclear power equipment as an opportunity. To prove its own equipment manufacturing capabilities. In addition, this is good for the corporate image and long-term benefits." Obviously, companies want to produce nuclear power products and create quality brands to get a bigger connected market.

At present, China has determined that the development of nuclear power should realize the autonomy, localization and marketization of large-scale generating units as soon as possible, implement the principle of “advanced technology and unify the technical line” and actively promote the development of nuclear power. The "plan" clearly points out that adherence to the introduction of digestion, absorption, and innovation will focus on advancing AP1000, CAP1400, high-temperature gas-cooled reactors, fast reactors, and post-processing technologies, accelerating the verification of domestic independent technology projects, and focusing on the construction of large-scale advanced pressurized water reactors and high-temperature air-cooling. Heap major special demonstration projects; actively promote nuclear power basic theory research, nuclear safety technology research and development design and engineering construction, improve the nuclear fuel cycle system.

Wang Binghua, secretary of the National Nuclear Power Group and chairman of the board of directors, disclosed to reporters at the annual meeting of the China Electrical Engineering Society in 2014 that the CAP1400 demonstration project had already met the conditions for approval of starting work in terms of design, project review, project certification, main equipment procurement, and construction preparation. National nuclear power has submitted a project approval report to the National Energy Administration and it is expected that construction will begin in the near future.

According to experts from Qinshan Nuclear Power, during the normal operation of the five Qinshan reactors, the annual cost of providing services will be about 2 billion yuan. The Qinshan Phase II equipment procurement experience shows that nuclear-specific equipment accounts for 25% of the total equipment and accounts for 54% of total equipment investment; non-nuclear-grade equipment accounts for 75% of the total number and accounts for 46% of total investment. For the production of a large number of non-nuclear-class general equipment companies, the market still has great demand.

However, from the analysis of nuclear power equipment manufacturing industry, China's nuclear power has not yet formed a complete industrial chain. There are more than 300 nuclear power plants in a nuclear power plant, and there are tens of thousands of large and small spare parts (sets). However, the current supporting manufacturers in China are very fragmented and urgently need to integrate and optimize the configuration. This brings opportunities for related companies to enter the nuclear power equipment industry.