Affordable Nuclear Power Construction Demonstrated by China
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As interest in small modular reactors and nuclear energy grows, a new analysis published in Nature offers valuable insights for decision-makers around the world. The analysis, led by Shangwei Liu, a researcher at Harvard's Kennedy School, and co-authored by Dan Kammen, the Bloomberg Distinguished Professor of the Just Energy Transition at Johns Hopkins, among others, focuses on China's approach to reducing nuclear construction costs.
China's strategy revolves around three key aspects: indigenization of manufacturing, standardization and economies of scale, and strong state financing. By replacing expensive imported components and labor with cheaper domestic alternatives, China has significantly reduced material and operational expenses. The country's large number of simultaneous reactor projects (around 27 under construction) enables repetition of construction processes, bulk material purchasing, and streamlined industrial production, greatly cutting costs per unit.
Direct state involvement in financing also plays a crucial role. This allows access to cheap capital, lowering financing costs and risk premiums compared to Western projects dependent on private investors and market conditions. China's stable policy and coordinated supply chains prevent costly delays and disruptions common in the West.
In contrast, France and the U.S. face higher costs due to a scarcity of projects limiting economies of scale, reliance on expensive foreign technology, fragmented or uncertain financing, and more complex or less predictable regulatory systems.
The current cost of the highly standardized Chinese-designed nuclear plants is about $2/watt, a stark contrast to the U.S. average costs for new nuclear plants, which can be as high as $15/watt. France's latest nuclear plants cost over $4/watt.
While nuclear power is still not cheap, China's strategy of standardized designs, strategic indigenization of supply chains, and coordinated industrial policy has been effective in reducing costs. The authors advocate for deeper component-level cost analysis and greater alignment between safety and cost control in regulatory systems.
Minghao Qiu, an assistant professor at Stony Brook University, suggests that countries seeking to scale up clean technologies should consider strategic indigenization as a key strategy. The analysis serves as a "playbook" for affordable nuclear deployment that balances safety with cost control, avoiding rushed localization before domestic capabilities mature.
The authors urge researchers, policymakers, and industry leaders to learn from both success stories and setbacks, collaborating to identify components that can be locally manufactured and training the workforce. They caution against past mistakes such as abandoning standardized designs or rushing to localize complex systems before domestic capabilities are ready.
The analysis is posted in the Science+Technology category and is tagged with energy and energy policy. It follows a model first tried in 2007 when data for only 103 U.S nuclear plants at 67 sites was available, now updated to look globally. Researchers from Johns Hopkins University, Harvard, CUNY, and Stony Brook University compiled and analyzed data to show how China has reduced nuclear construction costs.
In conclusion, China's approach to nuclear energy offers a valuable playbook for countries aiming to deploy nuclear energy affordably and at scale. Breaking the cost curse will take more than technology—it will take a smart and strategic approach.
Technology plays a significant role in China's strategy to reduce nuclear construction costs, as they focus on indigenization of manufacturing and utilization of standardized designs.
The strategic implementation of technology, along with strong state financing and coordinated industrial policy, contributes to China's cost-effective nuclear energy approach, serving as a potential model for nations aiming to scale up clean technologies.
