Source: Brokerage China

On April 27, Premier Li Qiang presided over a State Council executive meeting, deciding to approve the third phase project of the Zhejiang Sanmen nuclear power project and other nuclear power projects. The meeting emphasized that the development of nuclear power must ensure absolute safety, requiring the construction and operation of nuclear power units according to the highest global safety standards, continuously strengthening safety supervision capabilities, and effectively ensuring the safety net for nuclear power.

According to reports from The Paper, the newly approved projects include the third phase of Guangxi Fangchenggang Nuclear Power (Units 5 and 6), the second phase of Guangdong Taishan Nuclear Power (Units 3 and 4), the third phase of Zhejiang Sanmen Nuclear Power (Units 5 and 6), the third phase of Shandong Haiyang Nuclear Power (Units 5 and 6), and the first phase of Fujian Xiapu Nuclear Power (Units 1 and 2), totaling 5 projects and 10 new units. Analysis indicates that this is undoubtedly a significant bullish factor for the nuclear power industry chain.

Major events in Nuclear Power.

In 2025, the approval of domestic nuclear power projects will first be unblocked.

According to news broadcast on April 27, the executive meeting of the State Council held on the same day decided to approve the third phase project of the Zhejiang Sanmen nuclear power project and other nuclear power projects. Reports from The Paper indicated that the newly approved projects in this State Council meeting are the third phase of Guangxi Fangchenggang Nuclear Power (Units 5 and 6), the second phase of Guangdong Taishan Nuclear Power (Units 3 and 4), the third phase of Zhejiang Sanmen Nuclear Power (Units 5 and 6), the third phase of Shandong Haiyang Nuclear Power (Units 5 and 6), and the first phase of Fujian Xiapu Nuclear Power (Units 1 and 2), totaling 5 projects and 10 new units.

Since 2022, China has approved 10 or more nuclear power units every year for four consecutive years, maintaining a normalized approval pace. All the new projects adopt independent third-generation nuclear power technology, including 8 Hualong One units. Nuclear power engineering has always been an important driving force for expanding effective investment; with an estimated investment of about 20 billion yuan for each domestically produced million-kilowatt third-generation nuclear power unit, the total investment for the newly approved units exceeds 200 billion yuan.

According to a report by Reference News on April 27, citing Russian Satellite News Agency, the China Nuclear Energy Industry Association today released the blue paper 'China Nuclear Energy Development Report 2025', which shows that as of now, there are a total of 102 nuclear power units in operation, under construction, and approved for construction in China, with an installed capacity of 0.113 billion kilowatts, marking the first time that China's overall nuclear power scale has jumped to the world's first position. Currently, there are 28 nuclear power units under construction in China, with a total installed capacity of 33.65 million kilowatts, maintaining the world's first position in installed capacity for 18 consecutive years; China has 58 commercially operational nuclear power units, with a total installed capacity of 60.96 million kilowatts. In addition, China's nuclear power generation continues to grow. In 2024, the cumulative electricity generation of the national operating nuclear power units reaches 444.7 billion kilowatt-hours, accounting for 4.72% of the national electricity generation, ranking second globally, equivalent to reducing the combustion of standard coal by 0.127 billion tons, and reducing carbon dioxide emissions by 0.334 billion tons.

As the scale of Nuclear Power continues to expand, China's independent innovation capability in nuclear power technology has also significantly strengthened. In 2024, the goal is to achieve 100% localization of key main equipment for Nuclear Power and independent control of key component technologies, with a cumulative delivery of 114 sets of domestic Nuclear Power main equipment throughout the year, ensuring the normal running of the Hualong One, Guohe series, and high-temperature gas-cooled reactor units.

There is still significant room for growth.

From the stock market perspective, according to WIND data, the Market Cap of companies in the nuclear power Industry Chain is currently only 663 billion yuan. However, considering the potential for Industry development, the potential remains substantial.

According to Zheshang Securities Research Reports, in terms of demand direction, Gartner predicts that by 2027, the electrical utilities demand for data centers operating AI-optimized servers will reach 500 terawatt hours/year, which is 2.6 times the level of 2023. Microsoft, Google, Amazon, Meta, and other technology companies are all betting on nuclear energy. AI is creating a huge demand for electricity, and data centers require round-the-clock electricity supply, making nuclear energy an important choice as an efficient, clean, and stable source of Energy. New technologies such as SMR are expected to benefit from the increase in Energy demand brought about by AI.

In terms of supply direction, the energy structures of some countries globally (with the percentage of power generation in parentheses): USA (59%), Japan (69%), China (65%), and Russia (64%) are primarily based on fossil fuels; France has a 65% dependence on Nuclear Power; Canada has a 58% share of hydropower. The global Nuclear Power Industry is accelerating recovery. Japan's Ministry of Industry is revising a new draft of the basic Energy plan: by fiscal year 2040, the share of nuclear energy in Japan's power structure will reach about 20%, while the share of renewable Energy (such as Solar Energy, Wind Energy, etc.) will increase to 40% to 50%. Russia plans to build 28 million kilowatts of Nuclear Power installed capacity before 2042.

In 2019, the nuclear power projects in China were approved to restart, marking a shift in policy from cautious control to proactive support. China's nuclear power policy is centered on 'proactive, safe, and orderly' and clarifies the important position of Nuclear Power in clean Energy, aiding the 'dual carbon' goals. The policy supports the large-scale construction of independent third-generation technologies (such as Hualong One), strengthens nuclear safety regulation, improves the regulatory framework, and ensures high-quality development of Nuclear Power.

Additionally, CITIC SEC believes that the recent controllable nuclear fusion project has progressed rapidly, with the domestic Spark-I hybrid reactor project passing the environmental impact assessment, and first-level projects accelerating financing; internationally, the ITER organization has signed a tritium factory procurement agreement with South Korean domestic Institutions. In 2024, major countries such as the USA, China, and Germany will accelerate the implementation of controllable nuclear fusion research and gradually promote commercialization projects, with short-term experimental reactor investments driving growth in related companies' performances, while medium-term prospects look good for the commercialization progress of hybrid reactors. Long-term, fusion technology is expected to become the ultimate Energy solution, and it is suggested to layout around key materials and devices in the nuclear fusion Industry Chain.

Editor/jayden