China National Nuclear Power H1 on-grid power generation down 1.9% y/y to 112.9 bln kWh

China's nuclear power sector experienced a slight decline in on-grid electricity generation during the first half of 2026, with output falling 1.9% year-over-year to 112.9 billion kWh. This development highlights the challenges facing the industry amid a broader shift toward renewable energy sources, which continue to outpace nuclear in terms of growth and cost efficiency.

Despite the recent dip, China remains one of the few countries actively expanding its nuclear capacity. As of July 2025, the country had 58 operable reactors with a total capacity of 57 gigawatts (GWe), with 32 reactors under construction, totaling 34 GWe. In October 2024, China connected its first CAP1400 reactor to the grid, marking a milestone in its nuclear development. Additionally, the country has continued to approve new nuclear projects, including five major initiatives in August 2024 and another five in April 2025.

However, the growth of nuclear power in China has not kept pace with the rapid expansion of renewable energy. Between 2020 and 2023, electricity generation grew five to six times faster than nuclear. This trend is driven by the significantly lower costs of renewable technologies, which have become increasingly competitive with nuclear and other forms of energy generation.

The decline in nuclear output also reflects broader global patterns, where nuclear power has struggled to maintain its share of the electricity generation mix. In 2023, renewables were 3.3 times larger than that from nuclear. While China's nuclear industry benefits from relatively low costs compared to global standards—$62 per megawatt-hour (MWh) for new nuclear—renewables remain the more economically viable option in most markets.

The recent on-grid generation figures underscore the need for a balanced approach to energy planning in China. While nuclear power continues to play a role in the country's decarbonization strategy, the rapid growth and cost advantages of renewables suggest that they will remain the dominant force in the transition to a low-carbon energy system.