# China Breaks Ground on What Could Become Its Largest Nuclear Site

## Is Laiyang on track to become China's biggest nuclear power base?

State Power Investment Corporation (SPIC) began full-scale site levelling for the first two units of the Laiyang nuclear power plant in Shandong Province on 1 September 2026, marking the physical start of what the company says will eventually become China's largest nuclear installation by installed capacity. Once all six Guohe One (CAP1400) units are complete, Laiyang will reach approximately 9.26 GW of nameplate capacity, with an annual output of 74 TWh of clean electricity and a district heating capability exceeding 170 million square metres. SPIC is solely responsible for the investment, construction and operation of the project.

The pre-construction mobilisation meeting for units 1 and 2 was held at the project site on 1 September. The initial two-unit phase was among eight reactor units approved at a State Council executive meeting chaired by Premier Li Qiang on 31 July this year — a batch approval that signals Beijing's continued confidence in large-scale, standardised nuclear deployment.

For the global nuclear industry, Laiyang is the clearest current demonstration of what serial production economics can look like at gigawatt scale: a single site, one reactor design, centralised procurement, and replicable construction management — all aimed at driving down the [levelized cost of energy](https://smrintel.com/glossary/lcoe) for third-generation PWR technology.

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## The CAP1400: From Westinghouse Roots to Chinese Mass Production

The Guohe One, designated CAP1400, is a 1,400 MWe pressurised water reactor developed by SPIC over roughly 12 years of research and development, with the design officially launched in September 2020 according to the company. It is an enlarged derivative of the AP1000 pressurised water reactor originally developed by [Westinghouse Electric Company](https://smrintel.com/companies/westinghouse), with consulting input provided by the US firm during the development process.

The AP1000 lineage gives the CAP1400 a recognisable passive safety architecture — passive core cooling, [decay heat](https://smrintel.com/glossary/decay-heat) removal by gravity and natural circulation rather than active pumping systems — scaled up to a larger thermal output. SPIC claims 100% domestic production capability for the Guohe One, a supply-chain posture that materially reduces exposure to export controls or foreign component dependencies.

The demonstration programme at Shidaowan in Shandong Province provides the operational data underpinning Laiyang's construction case. The first demonstration Guohe One unit connected to the grid in November 2024, with the second following in September 2025. That two-unit operational baseline is thin by the standards Western regulators would require before approving serial construction — but within China's regulatory framework, it is sufficient to proceed with a six-unit commercial fleet programme.

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## Laiyang's Strategic Role in China's Dual-Carbon Framework

SPIC explicitly frames Laiyang as a "mass production" pilot — the first project intended to validate standardised, repeatable construction and management workflows for the CAP1400 across multiple future sites. The language used in the company's announcement mirrors the logic applied to any industrial scaling exercise: fixed engineering costs spread across more units, supply chains optimised for volume, workforce competence built through repetition.

At 74 TWh per year across all six units, Laiyang would supply [baseload power](https://smrintel.com/glossary/baseload-power) at a scale comparable to several European countries' entire nuclear output. The district heating figure — over 170 million square metres — reflects China's growing interest in co-locating nuclear heat supply with large urban centres, particularly in northern provinces with heavy coal heating dependency.

China's dual-carbon goals (peak emissions before 2030, carbon neutrality before 2060) require a substantial expansion of firm low-carbon generation. Nuclear is positioned as the dispatchable backbone alongside variable renewables. Approving eight reactor units in a single State Council session on 31 July is consistent with the construction tempo required to hit those targets — and Laiyang, as the largest single-site programme, carries significant symbolic weight.

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## What the Industry Should Watch

Several uncertainties are worth tracking as Laiyang progresses:

**Construction schedule credibility.** Site levelling has begun, but moving from earthworks to first concrete pour, then to civil construction completion and fuel load, involves years of execution risk. China's nuclear programme has generally maintained better schedule discipline than Western peers on recent projects, but a six-unit site has no precedent at this scale in the current era.

**FOAK-to-NOAK cost trajectory.** SPIC describes Laiyang as the first standardised mass-production CAP1400 project. The Shidaowan demonstration units are the [first of a kind (FOAK)](https://smrintel.com/glossary/foak); Laiyang units 1 and 2 will be the first attempt at replicating that design under a deliberately industrialised construction model. Whether the cost-reduction curve materialises at the pace SPIC projects will determine whether the CAP1400 becomes genuinely competitive for export markets.

**Export ambitions.** SPIC has stated the CAP1400 is intended for international deployment. Laiyang's performance as a construction reference will be the primary sales document for any prospective foreign buyer. A clean execution record matters enormously.

**Heating integration.** The 170 million square metres district heating commitment is substantial. The technical and commercial model for integrating reactor heat output with municipal district heating networks at this scale has limited precedent — it merits close attention as detailed engineering progresses.

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## Key Takeaways

- SPIC launched full-scale site levelling for Laiyang units 1 and 2 on 1 September 2026, following State Council approval of the initial two-unit phase on 31 July 2026.
- Laiyang will eventually host six CAP1400 (Guohe One) units, targeting approximately 9.26 GW total installed capacity — which SPIC says would make it China's largest nuclear power base.
- The plant projects annual electricity output of 74 TWh and district heating capacity exceeding 170 million square metres across all six units.
- The CAP1400 is a 1,400 MWe PWR derived from the Westinghouse AP1000 design, with the first demonstration unit at Shidaowan connected to the grid in November 2024 and the second in September 2025.
- SPIC frames Laiyang as the template for standardised, serial CAP1400 construction — the execution record here will define the design's export credibility.

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## Frequently Asked Questions

**What is the CAP1400 / Guohe One reactor?**
The Guohe One (CAP1400) is a 1,400 MWe pressurised water reactor developed by State Power Investment Corporation over approximately 12 years. It is an enlarged derivative of the Westinghouse AP1000 design and uses a passive safety architecture. SPIC claims 100% domestic Chinese production capability for the design.

**When did site work begin at Laiyang nuclear power plant?**
SPIC held the pre-construction mobilisation meeting for units 1 and 2 at the Laiyang site on 1 September 2026, marking the start of full-scale site levelling for the first phase of the project.

**How many reactors will Laiyang eventually have?**
The plant is planned for six CAP1400 units. Units 1 and 2 form the first phase, approved by the State Council on 31 July 2026. Total planned installed capacity across all six units is approximately 9.26 GW.

**Is the CAP1400 design already operating anywhere?**
Yes. Two demonstration Guohe One units at the Shidaowan site in Shandong Province are in operation — the first connected to the grid in November 2024, and the second in September 2025.

**What is China's plan for CAP1400 exports?**
SPIC has stated the CAP1400 is designed for both domestic large-scale deployment and international export. Laiyang's construction performance will serve as the primary operational reference for prospective foreign buyers.