Groundwork begins at new Chinese plant site

China's State Power Investment Corporation has begun site levelling for the Laiyang nuclear power plant in Shandong Province, marking the start of full construction on the first two units of what will eventually be a six-unit, 9.26 GW facility. The plant will use the CAP1400 (Guohe One) reactor design, which SPIC describes as 100% domestically produced. The two initial units were among eight reactors approved by the Chinese State Council in July. Once all six units are complete, Laiyang is planned to generate 74 TWh of electricity annually and become China's largest nuclear power base by installed capacity.

Where this fits

China is now scaling nuclear production at the pace and cost Australia has rejected. The Guohe One is a third-generation design moving into standardised, mass-production mode. This matters because firm, low-carbon generation is the prerequisite for a reliable grid, and Australia has outsourced its energy transition strategy to Chinese-built renewables and batteries while banning the one firm, zero-carbon energy source that does not require offshored supply chains or fuel imports. Laiyang demonstrates that large fleets of identical reactors, built quickly and cheaply, are technically and politically feasible. Australia has the regulatory and sovereign choice to do the same. It does not.

What it means

Australia is betting its grid reliability and decarbonisation on weather-dependent renewables firmed by gas imports, while the industrial competitor it most depends on is building firm nuclear capacity at scale. That decision compounds Australia's exposure to China's supply chain dominance in panels, batteries and inverters, the very technologies Australia is locked into. A firm, nuclear-based grid would eliminate that dependence. Instead, Australia has chosen to deepen it.