China’s nuclear-power generation is set to surge during the next few years, with installed capacity reaching 40 gigawatt by 2020, or 4% or the country’s total power-generation capacity.
Behind that expansion lies a plan for China to become self-sufficient in advanced nuclear technology. To achieve this goal, China requires overseas companies vying for access to the country’s fast-growing energy sector to provide technology transfers.
On November 26 2007, Areva signed an €8 billion contract for two reactors. Crucial to the deal is the requirement for Areva to give China the blueprints for is European pressurized reactors, which are among the most advanced on the market.
In July 2007, China and Westinghouse signed a deal for the construction of four nuclear reactors using the company’s AP1000 technology, which also contained a technology-transfer clause.
Both deals are expected to help China build nuclear reactors in the medium-term.
Source: WSJ, 27/11/07
