China may soon encourage the investment of private and overseas capital in nuclear power projects in order to diversify the country’s nuclear investments, according to draft rules published by China’s cabinet on Sept. 19.

China's Legislative Affairs Office of the State Council has drafted a new set of rules for nuclear plant development that would allow not only State-owned enterprises but also private capital and overseas investors to buy shares of nuclear power projects. The draft states that China will protect the interests of all kinds of investors who invest in nuclear projects in accordance with the law.

Investors will certainly profit after nuclear power stations are put into operation. However, it is only possible for an investor to participate in nuclear construction as a shareholder if the investor does not hold an operation license issued by the Chinese government. Only three nuclear enterprises – China National Nuclear Corporation, China General Nuclear Power Group and State Power Investment Corporation – currently hold licenses to operate nuclear power in China.

The new draft sets two prerequisites for shareholders to participate in the construction and operation of nuclear power projects: first, that investors take at least 25 percent of the shares of other nuclear power projects; and second, that they have at least eight years of experience as a shareholder, including at least one complete construction cycle and three years of operation.

Meanwhile, investors should have at least 300 people in line with relevant personnel qualifications, more than 50 percent of who should have more than five years of relevant experience. Their professional profiles should meet the needs of the nuclear power project management.

The draft guidelines, jointly published by the National Development and Reform Commission and the National Energy Administration, have been made available to the public. The Legislative Affairs Office will accept feedback and suggestions until Oct. 19, according to its official website.