[Machinery Industry Network] Recently, the development plan of emerging energy industry from 2011 to 2020 has been unveiled. The 12th Five-Year Plan for Energy Development and the Plan for the Development of Emerging Energy Industry will jointly build the energy development framework for China in the next 10 years. The planning not only includes the development and utilization of new energy resources such as advanced nuclear power, wind power, solar energy, and biomass energy, but also the upgrading of traditional energy sources. The introduction of the new plan will have an important impact on the development of the power industry in the next ten years. China's power industry will enter the growth model transformation and industrial optimization period.
Power Structure Transformation Accelerates Nuclear Power Benefits
China's power industry has always been dominating coal power. One of the new planning goals is that non-fossil energy will account for about 15% of total primary energy consumption by 2020; China's overall annual growth rate for the next ten years is expected to be 6%, with an average annual investment of 500 billion yuan. Among them, solar energy has increased by 56%, nuclear power has increased by 23%, wind power has increased by 17%, and hydropower and thermal power have increased by 5% annually. If additional hydropower, nuclear power, wind power, and solar energy are put in place, it can basically meet the country’s goal of setting a primary energy source of 15% from non-fossil fuel sources. The significance of diversification of power sources lies not only in emission reduction requirements, but also in the gradual replacement of fuel costs by fixed costs. The operating costs of solar energy, nuclear energy, and wind energy are relatively constant. They are immune to changes in the cost of fuel, and are also conducive to the low-cost advantages of China's single-capital investment. Therefore, the replacement of variable costs by fixed costs in China's power supply structure will be the trend.
In a comprehensive view, nuclear power is the most deterministic and is about to enter the contract and the performance boom period. As of 2010, the country has already put into operation nuclear power installed capacity of 11.7 million kilowatts, and about 10 million kilowatts under construction. According to the plan, China will build an additional 60 million kilowatts in 2010 to 2020. The period of 2010-2015 will be the peak of approval and construction. It will also be the peak period of the contract, and the relevant equipment manufacturers will be at a high point of prosperity. Suppliers of nuclear power components will share the favorable market environment for the rapid growth of nuclear power.
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