Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Electric Power

China's nuclear power growth to displace thermal coal by 22 mil mt in 2019: Citi

Metals | Steel | Raw Materials

Chinese steel mills hoping for margin reprieve

Electric Power

Platts Market Data – Electric Power

Electric Power | Electric Power Risk | Banking | Private Markets

Nodal Trader Conference, 12th Annual

Oil

ADNOC, ICE to launch Murban futures on Abu Dhabi exchange: sources

China's nuclear power growth to displace thermal coal by 22 mil mt in 2019: Citi

Singapore — The share of nuclear power generation in China has picked up over the last three years, and nuclear power growth will displace thermal coal in China by 22 million mt in 2019, Citi analysts said in a note Thursday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

Citi analysts said that at current rates, the combined growth in nuclear and wind power in China would be around 100 million MWh in 2019.

"It would have required around 35 million mt of coal to generate that much electricity if coal-fired plants had to step in to fill the demand. Of this around 22 million mt is just from nuclear power growth," said the analysts.

According to official data, January-July power generation from wind was up 10.7% on the year, while nuclear power generation jumped 22.2%. Growth of thermal power was relatively flat at 0.1% over the same period.

The Asian giant aims to produce 58 GW of total installed nuclear capacity by 2020 and another 30 GW is in the pipeline by the end of next year.

"The impact of this rapid build out is being felt not only in the growth rate of nuclear power generation, but also the share of nuclear in the power generation mix, which has been tracking at over 4.9% so far this year," said the researchers.

According to the white paper titled "Nuclear Safety in China" released Tuesday by the State Council Information Office, there are 47 nuclear power plants in the country, with another 11 plants under construction.

Construction of nuclear plants in Zhangzhou in the Fujian province and Huizhou in the Guangdong province will begin in the coming months, China's National Nuclear Safety Administration said.

According to Citi analysts, nuclear power growth in China was more impactful on seaborne thermal coal than wind.

"Though in absolute terms wind power generation has grown faster than nuclear power generation in China, from a seaborne thermal coal demand perspective, nuclear generation is more important as wind power substitutes power generation from inland coal-fired power plants," said the analysts.

The analysts added that while inland coal-fired plants relied on domestically produced coal in China, most of the nuclear power plants have been coming up in the coastal regions of Guangdong, Fujian, Zhejiang and Liaoning, which use a disproportionately higher proportion of seaborne coal compared to other provinces of China.

These power plants will "compete directly with power plants which use a substantial proportion of seaborne coal," they noted.

China imported a total of 281 million mt of coal in 2018, with thermal coal accounting for over 70% of the total import volume.

-- Hui Min Lee, hui.min.lee@spglobal.com

-- Edited by Shashwat Pradhan, shashwat.pradhan@spglobal.com