Energy Insider: China Approves 10 Nuclear Reactors, Green Exports Grow Despite Tensions

This week’s Caixin energy wrap covers significant developments in China’s climate and energy sector, touching on policy, industry, and new project updates.[para. 1]

China's State Council has approved the construction of 10 new nuclear reactors across five coastal provinces—Zhejiang, Guangdong, Fujian, and Shandong—representing a total investment exceeding 200 billion yuan ($27.5 billion).[para. 5][para. 6] Eight of these will be Hualong One reactors, which are China’s domestically developed third-generation pressurized water reactors, while two will be CAP1000 units, based on the U.S.-designed AP1000. The government emphasized that all reactors must adhere to the toughest safety standards worldwide.[para. 7][para. 8] [para. 6][para. 7][para. 8]

As of the end of 2024, China operated 57 nuclear reactors with a total capacity of 59.8 GW, making it the third-largest nuclear fleet globally, behind the U.S. and France. However, with a rapid build-out (including approval of at least 10 new reactors annually since 2022 and 28 reactors under construction as of end-2024), China is set to become the world’s largest nuclear power producer before 2030.[para. 9][para. 10][para. 11]

In the trade sector, Chinese manufacturers' exports of the “new three” green products—solar cells, electric vehicles (EVs), and lithium-ion batteries—continued to rise in March, even amidst global trade tensions. Year-on-year, solar cell export volumes grew by 84.6%, passenger EVs by 32.1%, and lithium-ion batteries by 25.1%.[para. 13] However, by value, lithium-ion battery exports rose by 29.1% to $5.8 billion, EVs by 3% to $4.2 billion, and solar cell exports, despite higher volumes, fell 23.5% to $2.5 billion, although this marked an improvement from the prior month’s sharper decline.[para. 14] These results occurred against the backdrop of increasing Western protectionism; the U.S., for instance, now imposes tariffs of up to 145%—and in some cases 245%—on certain Chinese imports.[para. 16]

China’s renewable energy sector has reached a milestone: for the first time, the country’s installed wind and solar power capacity surpassed its thermal (fossil fuel) capacity. By March’s end, China had 1,482 GW of wind and solar capacity, overtaking 1,451 GW of thermal power.[para. 18] In the first quarter, 74.33 GW of new wind and solar capacity were installed, representing 87% of new power capacity additions.[para. 19] Wind and solar generated 536.4 terawatt-hours between January and March, supplying 22.5% of China’s electricity—an annual increase of 4.3%. However, grid integration of renewables remains a challenge.[para. 21][para. 22]

Policy-wise, China has issued new guidelines to accelerate the adoption of low-carbon fuels in transportation. By 2027, electricity should account for at least 10% of total energy consumption in the sector. By 2035, electric vehicles should dominate car sales, and there should be a large-scale adoption of new-energy heavy trucks. Measures also target clean energy conversion for ships and the broader use of sustainable aviation fuels.[para. 24][para. 25][para. 26] The transportation sector currently accounts for about 17% of China’s energy consumption, with 95% coming from fossil fuels, highlighting the significance of these policy shifts.[para. 28]

[para. 1] Introduction; [5–8] Nuclear reactor approvals; [9–11] Nuclear capacity/status; [13–16] Green exports and trade tensions; [18–22] Wind/solar power milestone; [24–26][para. 28] Transportation sector low-carbon policy.