The development of the nuclear power industry concerns both national security and energy strategy and deserves a long-term blueprint, said a report of the Development Research Centre under the State Council.
Despite the end of the Cold War, the role of nuclear weapons and nuclear capability in securing national security has not changed, said the report published in the China Economic Times.
Superpowers with stocks of nuclear weapons are going after world domination. New nuclear powers and countries on the nuclear threshold are emerging.
Post-World War II international relations and recent developments in geopolitics show that China should maintain its nuclear capabilities in the interest of national security.
During the past few years, China has made efforts to reform the nuclear power industry under the guiding principle of transmission from military to civilian use.
By actively developing the nuclear power industry, China could promote the institutional reform and structural adjustment of the industry while further enhancing China's nuclear technology strength.
Such a policy could encourage research on nuclear fuels while giving the industry a chance to restructure in terms of personnel and locations.
The development of the nuclear power industry will have a far reaching impact on China's energy security in the next century, according to the report.
By developing nuclear power, China could ease its dependence on non-renewable energy sources such as petrol, coal and natural gas.
Coal-based power has accounted for more than 70 per cent of China's total energy consumption for decades. Since 1973, China has been a net importer of petrol.
Developing nuclear power will help diversify energy sources and consolidate China's energy security.
Developing nuclear power will also help ease the pressure on the environment, said the report.
Nuclear power is a double-edged sword for environmental protection. It is a clean source of energy, but could also become a source of pollution if the fuels and waste generated are not properly treated.
According to the Kyoto Agreement on the elimination of greenhouse gas, 77 countries have made a clear commitment to restricting such emissions. Because of its enormous size, China will bear considerable responsibility in this field.
Therefore, developing nuclear power is a practical choice for China's environmental protection efforts.
Because of its close connection with national security, the nuclear power industry is different from ordinary commercial sectors. In the current economic environment, it has not yet gained a market-oriented driving force and needs a strong government hand to guide development.
Nuclear power is still more expensive than coal-based energy. Related authorities should do more research on how to cut construction and operation costs of nuclear power plants to make the development of nuclear power more economically feasible.
The experiences of other countries have shown that the geographic concentration of nuclear plants can help reduce costs.
Government support for the industry currently mainly takes the form of preferential policy. Because of the low return rate and long-term nature of the nuclear power industry, the State should invest more.
In the short term, governmental preferential policies should include: prolonging the time of repayment of the loans ; exempting or reducing value-added taxes; requiring dominant electric companies to purchase a certain amount of nuclear power; and providing more favourable policies for the domestic industry manufacturing nuclear power facilities.
The government should also help eliminate barriers to absorbing trans-regional and trans-departmental investment. It should encourage the diversification of investment sources and the transformation of nuclear power plants into shareholding companies.
A national nuclear power design and development centre should be established to concentrate the technical strength of the nuclear power industry.
(China Daily)
