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China’s nuclear energy push lights up power shares

Investors should pay close attention to risks that still need to be addressed

China’s electricity consumption is rising. In the summer especially, heatwaves and air conditioning usage are driving record-breaking levels of electricity production.

It is the global leader in solar and wind power installations. But China’s consumption of coal continues to increase too. Coal generated a record 5,760 terawatt hours of electricity last year. Increasingly, filling that gap with cleaner nuclear energy is seen as the answer.

This week, the Chinese government approved a record 11 nuclear reactors across five sites, according to state-run media. The total investment is reported to be at least $31bn.

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