The construction of power units using China's self-developed Hualong One technology at East China's Zhejiang San'ao Nuclear Power Station started on December 31, 2020. Photo: China General Nuclear Power Group

Nuclear power-related shares rose on Monday after the Government Work Report said that China would enhance nuclear power development, even though domestic stock markets plunged on concerns that the central bank may drain liquidity from the market. 

The Government Work Report, released during the two sessions, vowed to push forward the use of clean energy and new energy sources, and to develop nuclear power on the premise of safety, contributing to the goal of curbing carbon emissions and reaching carbon neutrality by 2030.

Analysts said that it was the first time that the report had mentioned a development plan for nuclear power in 10 years. 

Buoyed by the news, the nuclear power sector witnessed a sharp rise at Monday's opening. Shares of nuclear power companies including Lanzhou LS Heavy Equipment Co, Taihai Manoir Nuclear Equipment Co and Taiyuan Heavy Industry Co all rose by the daily limit. CGN Nuclear Technology Development Co was up 1.99 percent at the close. 

According to the plan to achieve the goals of curbing carbon emissions and reaching carbon neutrality, which was released by the State Grid Corp of China (SGCC) on March 1, the company's nuclear power generating capacity goal was set at 80 million kilowatts by 2030.

"To realize the goal of curbing carbon emissions and reaching carbon neutrality by 2030, China should add at least 70 million kilowatts of nuclear power generating capacity in the next 10 years," Han Xiaoping, chief analyst at energy industry website china5e.com, told the Global Times on Monday. 

He noted that China had focused on developing nuclear power for several years and had the latest nuclear power generating techniques, such as third-generation nuclear reactors.

"At present, the number of nuclear power plants can be increased in China's coastal regions but the exact number has not been determined," said Han.

Nuclear power plants are highly reliable and efficient, said Han. 

However, Han stressed that the nuclear disaster at the Fukushima Daiichi Power Plant in Japan caused by a violent earthquake years ago would be unacceptable for China and the people. He suggested that safety must be seriously considered when implementing a nuclear power development plan.