China eyeing to displace Russia in Kazakhstan's nuclear power station deal
Kazakhstan's plan to establish its first nuclear power plant is witnessing a tight race between Russian and Chinese entities. Originally, Rosatom, the Russian nuclear conglomerate, seemed to have the upper hand. However, the Chinese National Nuclear Corporation (CNNC) is making a strong bid to claim the contract before the finish line.
Dong Baotong, the head of China's National Nuclear Safety Administration, recently held talks with Almasadam Satkaliev, head of the Kazakh Atomic Energy Agency (KAEA) in Astana. During these discussions, the Chinese delegation expressed interest in securing the construction contract and managing the nuclear fuel cycle, as well as strengthening scientific and technical infrastructure, according to a Kursiv news outlet report on May 26.
The Chinese bid seems to be receiving "special attention" from Kazakh officials due to its competitive cost. According to the report, CNNC estimates that it can build two HPR-1000 reactors, envisioned to generate a combined 2.4 Gigawatts of electricity annually, at approximately $5.5 billion. In comparison, Kazakh authorities have projected the cost of other reactor designs from Rosatom, as well as from South Korean and French firms, to range between $12-15 billion.
First Deputy Prime Minister Roman Sklyar recently emphasized that the rising cost of materials and services is a concern. Speaking to journalists in Astana on May 28, Kazakh Deputy Foreign Minister Roman Vassilenko indicated that Astana prefers a consortium of countries to be involved in the first nuclear power plant's operations. He also hinted at plans for a cluster of nuclear power plants in the future.
"There could be different types of consortia building different types of plants" over time, Vassilenko said. Originally, it was expected that the construction contract would be awarded in late 2022. However, the deadline has been prolonged several times, and a decision is now planned for the end of June. Vassilenko confirmed that no decision has been made so far.
A nationwide referendum in October 2024 authorized the construction of nuclear power plants. The site for the country's first nuclear facility has already been selected along the shore of Lake Balkhash in the Zhambyl District, roughly 300 miles northeast of the country's commercial hub, Almaty. Nuclear power plants are seen as essential for preventing energy shortages, reducing reliance on imports, and stabilizing electricity prices. In addition, officials have cast nuclear power as a "green energy" solution that can contribute significantly to achieving carbon neutrality by 2060, aligning with Kazakhstan's international commitments.
A recent engagement between Russian nuclear energy officials and their Kazakh counterparts took place in late January. In addition to Baotong's visit on May 26, President Kassym-Jomart Tokayev and other Kazakh officials met with CNNC chief Shen Yanfeng in March, heightening speculation that Kazakh authorities may prefer the Chinese bid. According to the German outlet Deutsche Welle, Astana pressured Rosatom to sell its interests in three uranium mining concerns to Chinese entities in mid-December, allegedly due to concerns about Russian involvement and potential secondary sanctions related to the ongoing military action in Ukraine.
Kazakh officials maintain that the tender decision-making process is considering not just cost, but also technological reliability and environmental safety. In a show of commitment, the KAEA announced the formation of a Supervision and Control Committee, which will be responsible for monitoring plant operations and ensuring the implementation of international standards and best practices. Kazakh officials are particularly interested in "studying the Chinese experience in ensuring nuclear and water-ecological safety at all stages" of the nuclear plant's construction and operations.
- Despite the initial advantage of Rosatom in Kazakhstan's nuclear power plant tender, the Chinese National Nuclear Corporation (CNNC) is garnering "special attention" due to its competitive cost and interest in strengthening scientific and technical infrastructure.
- In light of the ongoing tender, the Kazakh government is considering a consortium of countries for the first nuclear power plant's operations, with the Chinese bid offering a potential cost savings of approximately $10 billion compared to other reactor designs.
