BEIJING Aug 11 (Reuters) - China may put off a decision on a $8 billion
contract to build four nuclear reactors and is considering only making part
-by-part purchases because the technology is so expensive industry officials
said on Thursday.
The three foreign companies vying for the contract to build the first third
-generation reactors in China are Pittsburgh-based Westinghouse Electric
Co. France's Areva and Russia's Atomstroiexport.
The government's original plan was to complete a technical evaluation and
recommendation by October and make a final decision by the end of this year
.
But Tian Jiashu deputy director of the Nuclear Power Department of the China
National Nuclear Corp. speaking on the sidelines of an industry conference
told journalists that talks with the vendors were running into trouble.
"(The negotiation) is not progressing very smoothly," he said.
He declined to elaborate but said both Westinghouse's AP 1000 and Areva's
EPR technology were competitive.
"They are two representatives of third generation technology each has its
own advantages. We can't say which one is better," Tian said.
PRICE PROBLEMS
A senior official of the Chinese Nuclear Society told Reuters that the main
stumbling block was the high price tag on the foreign reactors and that
Beijing was considering importing only those parts of the plants that cannot
be produced domestically.
"The Chinese side started talks with Westinghouse and Areva from early August
to buy the technology on a part-by-part basis," said the official who declined
to be named.
But he said the government was reluctant to delay its decision because it
was keen to push ahead with expansion of China's nuclear capacity.
The energy-guzzling nation plans to invest some 400 billion yuan ($49.3 billion
) in building around 30 new nuclear reactors by 2020 bringing its total
installed nuclear capacity to 40 gigawatts.
It currently has nine working reactors that supply around 2.3 percent of
its electricity but aims to boost the amount of power it gets from nuclear
plants to 4 percent within 15 years.
It has also been trying to build up its domestic manufacturing capacity with
an eye on eventual exports.
"Introducing third generation technology will swiftly promote our own technology
. It could even create conditions for us to export nuclear technology in
the future," He Yu general manager of the Guangdong Nuclear Group told
the industry conference.
But some officials are worried that the wide variety of nuclear technology
used in China -- including equipment imported from France Russia and Canada
-- could hinder development.
"Diversified technology may be conducive to our technological development
but a standard technology is obviously more suitable for a safe and stable
development of the nuclear sector," Tian said.
The government busy dealing with the new technology may also delay approval
of other new nuclear power plants until the second half of next year.
Many inland provinces are applying to build reactors but Beijing is likely
to prioritise the booming but resource-poor coastal areas officials said
.
"Based on the government blueprint and China's ability to build nuclear plants
we should first guarantee construction in the coastal areas," the nuclear
society official said. ($1=8.109 yuan)