The State Council of China has recently given the green light to five nuclear power projects, which heralds a significant change as it allows for an increased participation of private capital. For the first time, privately-held firms can hold ownership stakes of up to 10%. Future endeavors will be centered around creating conducive conditions and dismantling barriers to enable more extensive
The State Council of China has recently given the green light to five nuclear power projects, which heralds a significant change as it allows for an increased participation of private capital. For the first time, privately-held firms can hold ownership stakes of up to 10%. Future endeavors will be centered around creating conducive conditions and dismantling barriers to enable more extensive participation of private investors in crucial infrastructure sectors such as railways and energy.
Among the approved projects is Jiangsu Xuwei Phase I, along with four other nuclear initiatives spearheaded by state-owned enterprises (SOEs). Ten privately-owned companies are engaged, with a combined equity contribution amounting to 4.5 billion yuan in these projects. This step is expected to spur an additional investment of over 24 billion yuan from these firms.
According to Wu Youhong from the Investment Research Institute of the China Academy of Macroeconomic Research, nuclear power is of vital significance in guaranteeing national economic stability and energy security due to its large-scale requirements and dependable long-term returns. Historically, nuclear power has been predominantly under the control of SOEs and with stakes held by local governments, while private entities had limited prior participation. However, the updated policies now actively encourage a more widespread involvement of the private sector.