Energy Construction
China Ramps Up Large Non-Fossil Energy Projects in Wake of Mideast War
The first two units of China’s San’ao-1 nuclear power plant, about 2.2 MW of capacity, were connected to the national grid in Zhejiang Province and the Yangtze River Delta region, state owned China General Nuclear Corp. announced March 12.
Amid rising concerns over crude oil movement through the Strait of Hormuz and long-term risks in the escalating U.S-Israel-Iran war, China is fast-tracking funding and work on several new non-fossil fuel power projects, among others that were planned earlier.
Imports still account for 80% of China’s oil needs, half of which passes through the Hormuz waterway, now blocked by Iran. While the Chinese foreign ministry. said in a statement the country "will do what is necessary to protect its energy security," observers such as Columbia University's Center on Global Energy Policy are skeptical on whether may take an active role in the conflict, with up to 1.4 million barrels of oil now in reserve in the country and crude oil making up just 20% of total national energy consumption in 2024.
At a financial results briefing on March 23, executives of government controlled China Petroleum & Chemical Corp. known as Sinopec, said the firm has enough crude and refined oil reserves for supply through the second quarter, but a more extended conflict could affect refining and chemicals production, said the Wall Street Journal.
Wind, nuclear, solar and hydropower generated more than one-third of China's electricity in 2025, according to government agency statistics, with more than half of expanded installed transmission capacity now from clean sources.
“The current Iran crisis mainly offers strong narrative for government to justify those investments and possibly shift more fiscal support for the energy projects,” Dan Wang, Singapore-based China director at think tank Eurasia Group, told ENR.
Recent government announcements note new developments on two large nuclear energy projects, a pumped hydroelectricity storage development, EV charging clusters, a new transmission line and new equipment enabling use of hydrogen energy.
“The looming energy crisis as a result of this war will undoubtedly motivate China to fast-track such non-fossil energy projects in order to reduce its dependence on imported crude and gas,” Zhiqun Zhu, a Bucknell University international relations professor and director of its China Institute told ENR.
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Nuclear Plants Move Forward
Steps taken this month include connecting the first two units of China’s San’ao-1 nuclear power plant, about 2.2 MW of capacity to the national grid in Zhejiang Province and the Yangtze River Delta region, state owned China General Nuclear Corp. announced March 12. It and other state owned entities hold 46% of shares of the project company Cangnan Nuclear Power, with a Chinese private equity firm having a 2% stake, the first such project with private sector involvement. Reports cite the project construction cost at $10.2 billion for its first phase.
When completed, the project is set to feature six Chinese-made pressurized water reactors using the Hualong One design, which will generate 54 billion kWh of power annually. It will save more than 16 million tonnes of coal and more than 50 million tonnes of CO₂ emissions each year, China General Nuclear said.
China also announced in early March an acceleration of the estimated $5.6-billion first-phase of the $16.7-billion Bailong nuclear power plant in Guangxi province. It will feature two CAP1000 reactors, described as an uprated version of the AP1000 design developed by U.S.-based Westinghouse. Construction on the first unit began in December 2025. Once fully operational, the first two units would provide 20 billion kilowatt-hours of power annually.
At the meeting earlier this month of the National People’s Congress, China’s parliament, the government also revealed plans to create a new target of 100 GW of pumped hydro storage to stabilize the grid as it integrates more wind and solar power.
The China Academy of Aerospace Propulsion Technology also announced on March 9 four new hydrogen energy products focusing on production, storage, and refueling to advance the sector's large-scale commercial application. The government also revealed plans to create zero-carbon transport corridors that involve building hydrogen refueling and high-power EV charging "clusters" along major highways to replace diesel-reliant freight.
China's National Reforms Development Commission also announced a plan to construct a third line on the Hami–Dunhuang 750-kV transmission system connecting Xinjiang and Gansu provinces to also enable more clean power export to other parts of the country. It is set to finish by March 2027.
