China announced Monday it will implement a national power price benchmark for its new nuclear plants, replacing more complicated pricing rules set for individual sites.
The National Development and Reform Commission set a benchmark price of about 7 cents per kilowatt hour for reactors online after Jan. 1, according to the state-controlled China Daily newspaper. Experts quoted by the publication said the benchmark will make the plants more profitable than under previous pricing schemes based on plant costs and local thermal power prices. In parts of the country where fossil generation is cheaper than the new nuclear benchmark, reactors will be required to sell power at the rate set for fossil plants. The country's primary agency for setting economic policy also will allow variations in the benchmark price for demonstration plants.
China is far and away the world leader in new nuclear plant development, with 28 reactors currently under construction, according to the World Nuclear Association. The country has 17 operating reactors and plans to quadruple its nuclear generation to 58 gigawatts by 2020.