Zhitong Finance App learned that on September 14, Turkey's Minister of Energy and Natural Resources Bayiraktal said at a press conference that it is expected to reach an agreement with China to build a new nuclear power plant. Bairakhtar revealed that the Turkish authorities have been in talks with a Chinese company for a long time, and it is hoped that an agreement will be finalized within a few months. If an agreement is reached, China will build Turkey's third nuclear power plant. The country's first nuclear power plant was built by Russia on the Mediterranean coast, and the second is expected to be located on the Black Sea coast. Currently, it is still in the planning stage. Related concept stocks: CGN Mining (01164), CNNC International (02302), CGN Power (01816).
According to reports, Turkey's first nuclear power plant is the Akkuyu nuclear power plant, located along the Mediterranean coast. It has a total of 4 reactors designed and built by Russia. Turkey and Russia signed an agreement to build the Akkuyu nuclear power plant in 2010. Turkish President Recep Tayyip Erdogan revealed earlier that all units of the Akkuyu nuclear power plant will be fully operated in 2028, will meet 10% of Turkey's electricity demand in the future, and Turkey will also save 1.5 billion US dollars in natural gas imports every year, which will have a “positive impact” on Turkey's national income.
Recently, the World Nuclear Energy Association released a report saying that since the Russia-Ukraine conflict, people's interest in nuclear energy has also increased. They hope to ensure their country's energy security. Combined with governments increasing the installed capacity of nuclear power to achieve the “zero carbon” target, it is expected that the global nuclear power industry will expand its installed capacity by three-quarters within the next few decades. According to the data, the world currently has 391 gigawatts of nuclear power installed capacity, which can meet one-tenth of the world's electricity demand. The association predicts that by 2040, the installed capacity of nuclear power will increase to 686 gigawatts, and may even reach 931 gigawatts.
Domestically, on September 12, the East China Electric Power Design Institute of China Energy Construction and CLP held a social responsibility report on the 70th anniversary of its establishment and released. It was stated at the conference that as of June 30, 2023, China is operating a total of 55 nuclear power units, with an installed capacity of 56.99 million kilowatts. From January to June 2023, the country's cumulative power generation was 4167.96 billion kilowatt-hours, and the cumulative power generation capacity of operating nuclear power units was 21,1884 billion kilowatt-hours, accounting for 5.08% of the country's cumulative power generation. It is estimated that by 2025, China's nuclear power generation capacity will be around 70 million kilowatts and 50 million kilowatts under construction; by 2030, the capacity of nuclear power in operation will reach 120 million kilowatts, and nuclear power generation will account for about 8% of the country's power generation.
In terms of scale development, China has approved the construction of 10 nuclear power units in 2022, and the construction of 6 nuclear power units has been approved since 2023. It is likely that nuclear power construction efforts will continue to be increased in the future to meet the growing domestic demand for electricity. In terms of application development, at present, China's nuclear power industry mainly uses commercial nuclear power to generate electricity, but with the advancement of technology and the expansion of application fields, the nuclear power industry will develop in the direction of diversification. For example, fields such as hydrogen production from nuclear energy, nuclear heating, nuclear steam supply, and application of nuclear energy to marine development may all become the future development direction of the nuclear power industry.
Dongguan Securities pointed out that according to the “14th Five-Year Plan” of the Modern Energy System Plan issued by the National Development and Reform Commission and the National Energy Administration, by 2025, the operating capacity of nuclear power will reach about 70 million kilowatts. At the same time, nuclear power companies are actively promoting installation, and China's nuclear power plans to reach 56 million kilowatts of operating power by 2025. Under the guidance of national planning, nuclear power approval and construction are expected to continue to advance. In the future, newly approved units will be gradually completed and put into operation, and are expected to contribute to increased nuclear power. At the same time, as China continues to implement research on the localization of core equipment and components, the nuclear power industry chain is expected to be further autonomous and controllable, and the cost of nuclear power projects is expected to be optimized.
Guolian Securities said that against the backdrop of the country's positive attitude in developing nuclear power, accelerating nuclear power approval, and continuous breakthroughs in nuclear power technology, investment and construction of nuclear power is expected to accelerate, and nuclear energy development has ushered in a new stage.
Related concept stocks:
CGN Mining (01164): CGN Mining is one of the listed subsidiaries of CGN Group, the largest nuclear power group in China and the third largest in the world. It is also the only platform for investment and financing of overseas uranium resource development under the CGN Group.
CNNC International (02302): CNNC is the only wholly state-owned enterprise that has established a complete nuclear technology industry system in China. It is the main investor and owner of China's nuclear power plants, and a supplier of nuclear power design, nuclear fuel, and nuclear technology equipment.
CGN Power (01816): The company's half-year performance report shows that the company's revenue for the first half of the year increased 7.25% to 39.276 billion yuan, and net profit increased 17.91% to 6.959 billion yuan. The announcement stated that the nuclear power units in operation managed by the company are operating safely and stably, and that the construction of nuclear power plants under construction is progressing in an orderly manner. As of June 30, 2023, the Group has operated and managed a total of 27 nuclear power units in operation, with an installed capacity of 30,568 megawatts; the Group has built a total of 6 nuclear power units (including 4 units entrusted to the company by the controlling shareholders of the company), with an installed capacity of 7208 megawatts. All units under construction are progressing steadily according to plan.