Feed-in Tariff Optimization of Nuclear Power under the Electricity System Reform Based on Price Linkage Policy

Abstract

Given in the phase of development and the cost element, Chinese nuclear power is not qualified temporarily for full participation in the market competition. The feed-in tariff (FIT) policies of nuclear power plants and portion of electricity in the market competition are the principal external factors determining. As the market reform deepens, the implementation of nuclear power FIT policies which have been carried out for 7-years tremendously differs from the expectation. And the policies of benchmark FIT for coal-fired plants have been changed to a market-based pricing mechanism of "base price + floating price". Based on the analysis of the pricing mechanism for nuclear power benchmark FIT and its implementation, this paper puts forward the overall idea of the regulation mechanism for electricity price. Besides, the paper discusses respective electricity price mechanisms for both guaranteed acquisition electricity and electricity for bidding. It describes a mechanism for construction investment and nuclear fuel price to be linked with FIT of nuclear power unit in detail. And it is suggested that the benchmark electricity price of nuclear power is no longer linked with that of coal-fired plants. This paper provides two methods to ensure the proportion of guaranteed acquisition electricity for performers’ reference and suggests to establish a mechanism for construction investment and nuclear fuel price to be linked with FIT. The analysis results of this paper will provide a theoretical basis for perfecting the pricing mechanism for FIT of nuclear power.