TNAG-1058-FCO40-1308-Guangdong-nuclear-power-station-project-1981 — Page 67

1.

1.1

INTRODUCTION

PART I

SUMMARY REPORT

Objective

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The purpose of the study was to explore the feasibility of developing a nuclear power station in Guangdong to be jointly owned by Guangdong Power Company (GPC) and China Light & Power Company (CLP) association with other Hong Kong interests. The study covered a wide range of aspects with emphasis on economics, technology and safety. The major items included were the cost estimates, source of finance, loan repayment capability, benefit and profit analyses, plant size, unit capacity, transmission requirements, equipment selection, reactor type, site selection and nuclear safety.

This feasibility report has been jointly prepared by GPC and CLP for submission to their respective Board of Directors and Governments for approval.

1.2

Background

The power supply industry in Guangdong Province has developed very fast in the past thirty-one years. However, due to their internal policy on fuel and for other reasons, electricity supply in Guangdong has not been able to meet the demand. In order to fulfil the 'Four Modernisation Plan' and to meet the pressing need for more electricity, it is necessary to develop nuclear power generation in parallel with coal-fired, shale-fired and hydroelectric generation developments in the Province.

The growth of the power supply industry in Hong Kong has been very rapid in the last few decades. However, due to the world energy crisis and political instability in certain oil exporting countries the price of oil has increased substantially and has affected the development and sales of electricity in Hong Kong. Consequently, it is now considered beneficial to develop nuclear power generation in parallel with the coal-fired plant now under construction.

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The economic ties between the neigbouring Guangdong Province and Hong Kong are very strong. The electricity purchase agreement which signed by GPC and CLP in 1979 has established a friendly and good working relationship between the two Companies. In order to meet future demand in both systems and to diversify fuel sources, it would be of common interest to jointly develop a nuclear power station in Guangdong taking full advantage of the geographical conditions in Guangdong and the electricity sales markets in both locations.

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