Friday, March 9, 2012

China energy plan more favorable for nuclear

On Wednesday, premier Wen Jiabao outlined his plan for energy reform - optimizing the energy structure, promoting efficient use of traditional energy, developing nuclear, and increasing "new" energy (e.g. alternative energy) to the NPC. This marks a step into the direction of gradually including market pricing for oil, gas, and electricity in 2012-2015, but it still looks like the government can (and will) still adjust prices as it sees fit. According to this article, Jiabao's plan also indicates that the government is much more supportive of the centrally owned grid and nuclear facilities as opposed to more private and fragmented thermal coal plants. Though coal is obviously really important to the country's electricity, apparently they aren't too favored by the government. Plans by the government to expand nuclear power as well as favorable on-grid pricing for nuclear power mean that the government really favors this tech. The gradual market pricing inclusions will help gas to become more competitive and is also good for the oil industry too.

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