Huaneng moves ahead on Shandong nuclear plant

BEIJING - China Huaneng Group said on Wednesday that it will strive to get its proposed Shidaowan nuclear plant included on the national planning list this year as it continues site selection for other new nuclear facilities.

Huaneng, one of the country's top generation companies, aims to expand the proportion of clean energy in its power structure.

The company will also increase overseas investment in hydropower projects this year, said Cao Peixi, company president.

Huaneng said in October 2009 that it would start the development of the Shidaowan station in Shandong province.

The project was suspended after the Japanese tsunami and nuclear accident in March. After the accident, China carried out a safety inspection of all operating nuclear plants, as well as those under construction.

Huaneng said it would select sites for new nuclear stations in Fujian and Liaoning provinces this year.

The National Energy Administration (NEA) said on Tuesday that China will develop nuclear power in a highly efficient and safe way and actively encourage hydropower projects during the 12th Five-Year Plan period (2011-15), as it seeks to adjust its energy structure.

Liu Tienan, head of NEA, said that China would approve nuclear safety regulations more quickly and speed up revisions of its medium- and long-term plans for nuclear power development.

"The central government will support the development of clean energy, including hydropower, wind power, solar energy and unconventional gas in the coming years," he said.

Huaneng's renewable energy facilities, including those for hydropower and wind power, have yielded increasing profits. Hydropower contributed 3.22 billion yuan ($510 million) last year, and wind power brought in 1.54 billion yuan.

The company plans to expand its installed capacity this year by 9.9 million kilowatts (kW) and lift its coal production capacity by 15.2 million tons.

To meet the targets, Huaneng will boost the preliminary work on hydropower stations on the Yarlung Zangbo and Lancang rivers in the Tibet autonomous region, as well as wind farms and solar energy projects in Yunnan province.

In 2011, Huaneng generated 604.6 billion kW of electricity, up 12.5 percent from a year ago.

Cao said that power demand will rise further this year as the economy continues expanding, and occasional shortages will occur in some regions.

He said that coal demand and production would both grow, but transportation bottlenecks would persist, keeping domestic coal prices high.

Huaneng said it had an annual coal production capacity of 68.17 million tons, up 6.3 percent, and will produce 66.7 million tons of coal in 2012 to improve its self-sufficiency ratio.