popular articles

How China Reduces Nuclear Reactor Costs

China outperforms France in nuclear construction costs, thanks to optimized mass production and robust state financing, significantly reducing expenditure.

Please share:

China currently dominates the nuclear construction sector, with production costs well below those in France.
This competitiveness is the result of an industrial strategy based on economies of scale and easy access to capital through direct state intervention.
This combination enables Beijing to maintain a steady pace in the development of its nuclear fleet, while keeping expenditure under control.

Industrial optimization and cost reduction

The efficiency of the Chinese model is based primarily on the standardization of construction processes and large-scale industrialization.
Currently, 27 reactors are under construction in China, a number that enables substantial savings to be made on the purchase of materials and the repetition of construction methods.
This approach considerably reduces the cost per unit of installed power.
By comparison, France’s nuclear power program, particularly with the development of EPR reactors, suffers from a scarcity of projects, which limits the effects of scale.
As a result, construction costs are weighed down by non-standardized processes and a less optimized industrial organization.
The difference in strategy translates into a significant cost differential, with Chinese reactors costing around three times less than their European counterparts.

State financing and controlling the cost of capital

The other key factor in China’s competitiveness is its financing model.
In China, nuclear projects benefit from massive state support, which translates into a very low cost of capital.
Unlike Europe, where projects often have to convince private investors, who are exposed to political and regulatory risks, China offers a secure and stable financial framework.
This state support avoids the cost overruns associated with the high interest rates common in Europe, where financing remains a major obstacle.
In France, nuclear projects face a more uncertain financial environment.
State involvement, while present, does not reach the level of support seen in China, which adds to final costs.
The financing of the Hinkley Point plant in the UK, for example, has shown that the absence of a strong government commitment can lead to significant cost overruns, affecting the competitiveness of European nuclear projects.

Implications for the international market

China is not content to simply develop its domestic nuclear fleet at lower cost; it also aims to establish itself on the international market.
The Hualong-1 reactor, already exported to countries such as Pakistan and Argentina, illustrates this strategy.
Although penetration of the European market remains limited, the competitiveness of Chinese reactors could attract the interest of certain Eastern European countries, which are looking for alternatives to Rosatom’s Russian monopoly.
The inclusion of nuclear power in the green taxonomy by the European Parliament in 2022 is intended to attract more capital and reduce the cost of capital in Europe.
However, without far-reaching industrial reorganization and a more sustained financial commitment from governments, European projects are likely to continue to cost significantly more than Chinese reactors.
The evolution of competitiveness in the nuclear sector will largely depend on the ability of European countries to adapt their industrial and financial strategies.
The Chinese model, combining massive industrialization and state support, could well redefine global market standards.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Japanese operator Tepco has completed the extraction of a second radioactive debris sample from the damaged Fukushima reactor, a critical technical step in a decommissioning project set to span several decades.
US-based enCore Energy continues to optimise its uranium project in Texas with a record installation rate and strengthened leadership team.
US-based enCore Energy continues to optimise its uranium project in Texas with a record installation rate and strengthened leadership team.
Framatome has commissioned a new facility in Romans-sur-Isère to secure long-term production of research reactor fuels and medical isotopes.
Framatome has commissioned a new facility in Romans-sur-Isère to secure long-term production of research reactor fuels and medical isotopes.
EDF reconnected the Flamanville EPR nuclear reactor to the power grid on 19 April, two days ahead of schedule, following a series of technical maintenance works and adjustments on critical components.
EDF reconnected the Flamanville EPR nuclear reactor to the power grid on 19 April, two days ahead of schedule, following a series of technical maintenance works and adjustments on critical components.
TerraPower has informed the UK regulator of its intention to submit the Natrium reactor design for evaluation under the Generic Design Assessment (GDA) process, the first step toward international deployment of this nuclear technology.
Framatome and Sizewell C have signed a contract for the supply, qualification, and pre-assembly of conventional instrumentation for the EPR reactors under construction at Sizewell, strengthening their collaboration on this large-scale project.
Framatome and Sizewell C have signed a contract for the supply, qualification, and pre-assembly of conventional instrumentation for the EPR reactors under construction at Sizewell, strengthening their collaboration on this large-scale project.
Uzbekistan has launched the construction of auxiliary buildings for its future modular nuclear reactor, the first export project for the Russian RITM-200N technology.
Uzbekistan has launched the construction of auxiliary buildings for its future modular nuclear reactor, the first export project for the Russian RITM-200N technology.
Holtec International has submitted its final proposal to Great British Nuclear as part of the competition to deploy several small modular reactors in the UK, joining GE Hitachi and Rolls-Royce SMR in the decisive phase.
Holtec International has submitted its final proposal to Great British Nuclear as part of the competition to deploy several small modular reactors in the UK, joining GE Hitachi and Rolls-Royce SMR in the decisive phase.
The restart of the Flamanville EPR reactor, initially scheduled for 17 April, has now been postponed to 21 April following extended maintenance operations, according to a statement from Électricité de France.
EDF announced on April 10 the extension of the shutdown of the Flamanville EPR nuclear reactor, initially scheduled to restart on April 12, due to new maintenance operations within its nuclear zone.
EDF announced on April 10 the extension of the shutdown of the Flamanville EPR nuclear reactor, initially scheduled to restart on April 12, due to new maintenance operations within its nuclear zone.
The French National Assembly has launched a mission to analyse nuclear pricing and anticipate the effects of the 2026 tariff reform amid heightened tensions over energy costs.
The French National Assembly has launched a mission to analyse nuclear pricing and anticipate the effects of the 2026 tariff reform amid heightened tensions over energy costs.
GE Hitachi and Rolls-Royce SMR have submitted their final offer as part of the modular reactor selection process led by Great British Nuclear in the United Kingdom.
GE Hitachi and Rolls-Royce SMR have submitted their final offer as part of the modular reactor selection process led by Great British Nuclear in the United Kingdom.
Washington and Abu Dhabi pave the way for renewed civil nuclear cooperation, aiming to strengthen Emirati technological and energy capabilities within a complex regional strategic context.
Duke Energy has submitted a request to the US Nuclear Regulatory Commission to extend the operation of its Robinson plant by 20 years, supporting energy stability in the Carolinas.
Duke Energy has submitted a request to the US Nuclear Regulatory Commission to extend the operation of its Robinson plant by 20 years, supporting energy stability in the Carolinas.
India's largest power producer, NTPC, paves the way for small modular reactors to modernize its aging energy infrastructure and strengthen energy security through significant international partnerships.
India's largest power producer, NTPC, paves the way for small modular reactors to modernize its aging energy infrastructure and strengthen energy security through significant international partnerships.
EDF has delayed the restart of the Flamanville EPR to 11 April, citing a new maintenance operation, while keeping its 2025 production forecast unchanged.
EDF has delayed the restart of the Flamanville EPR to 11 April, citing a new maintenance operation, while keeping its 2025 production forecast unchanged.
EDF's plan to build a facility for recycling low-level radioactive metals in Fessenheim is raising significant concerns over health, economics and regulation.
enCore Energy extracted 50,000 pounds of uranium in March from its Alta Mesa site in Texas, while consolidating its operations through strategic leadership appointments.
enCore Energy extracted 50,000 pounds of uranium in March from its Alta Mesa site in Texas, while consolidating its operations through strategic leadership appointments.
Canada's nuclear regulator has issued Ontario Power Generation a construction licence for a BWRX-300 small modular reactor at the Darlington site, marking a key step in the province’s nuclear development.
Canada's nuclear regulator has issued Ontario Power Generation a construction licence for a BWRX-300 small modular reactor at the Darlington site, marking a key step in the province’s nuclear development.
Despite severe Western sanctions targeting Russian energy, Rosatom continues its international nuclear projects and maintains a steady flow of enriched uranium to Europe and the United States, thus supporting the Russian economy through an effective diversification strategy.
Despite severe Western sanctions targeting Russian energy, Rosatom continues its international nuclear projects and maintains a steady flow of enriched uranium to Europe and the United States, thus supporting the Russian economy through an effective diversification strategy.
Polskie Elektrownie Jądrowe has signed a development agreement with the Westinghouse-Bechtel consortium, ensuring continuity of Poland's first nuclear plant project after a previous contract expired.
Fermi Energia has signed a strategic agreement with Samsung C&T to develop two small modular reactors in Estonia, targeting commercial operation by 2035.
Fermi Energia has signed a strategic agreement with Samsung C&T to develop two small modular reactors in Estonia, targeting commercial operation by 2035.
China National Nuclear Corporation mobilizes international investors and financial partners for a unique nuclear project combining two distinct technologies to simultaneously supply industrial heat and electricity, marking a new strategic step for China's energy industry.
China National Nuclear Corporation mobilizes international investors and financial partners for a unique nuclear project combining two distinct technologies to simultaneously supply industrial heat and electricity, marking a new strategic step for China's energy industry.
Framatome and TechnicAtome have acquired Segault, a strategic nuclear valve manufacturer, thereby blocking a takeover by the American firm Flowserve following opposition from the French government.
Framatome and TechnicAtome have acquired Segault, a strategic nuclear valve manufacturer, thereby blocking a takeover by the American firm Flowserve following opposition from the French government.

Advertising