President Anne Lauvergeon of the France-based Areva Group, the world's largest nuclear engineering firm, said she is optimistic about China's nuclear engineering market and will enhance its research and development in China so as to help solve the serious power shortages in the country.

Lauvergeon made the remark here Tuesday at the ongoing 2005 Fortune Global Forum. "Electricity generated by nuclear power only accounts for a small portion of China's total electricity supply, so the country still needs 20 to 25 nuclear power plants."

China's power shortage makes it necessary to rapidly develop nuclear power plants, and France, which has the most advanced nuclear power technology and equipment, has had fruitful cooperation with China in this field.

"Over 3,500 Areva employees are now working in China, and the group has worked out special technology-transfer plans for China," she said.

China's rapid economic development has led to a severe power shortage problem. Power brownouts became frequent in many places last year. The state has already listed the nuclear power industry as a priority in its plans for high technology research and development, and China's nuclear power generation capacity is expected to triple to account for 4 percent of its total power output by 2020, according to sources with the State Development and Reform Commission.

After more than 20 years of efforts, China now has the ability to build 300,000 kilowatt-level and 600,000 kilowatt-level nuclear power stations. It can also manufacture key equipment for one million kilowatt-level nuclear power stations.

Official statistics showed that in 2003, electricity generated by nuclear power only accounted for 2.3 percent of China's total electricity supply, compared to 77 percent in France and 16 percent for the world average level.

Chinese high-level officials have called for promotion of nuclear power international cooperation, in particular in project- related technology bidding and technical instruction. China still needs over 30 billion US dollars of foreign investment to increase its nuclear electricity capacity to 40,000 megawatts by 2020 as planned, experts said.

China first used nuke power technology from France in its Daya Bay Nuclear Power Plant in southern Guangdong Province, and later furthered cooperation with France in Ling'ao Nuclear Power Plant, located in the same province.

Hardly any carbon dioxide will be emitted during the nuclear power generation process, which is both cost-effective and safe, so the nuclear power technology is conducive to China's environmental protection, Lauvergeon said.

The Areva group, with its services mainly focused on power generation and grid construction, has six joint ventures and five sole corporations in China, and plans to set up 9 more joint ventures.

The net profits of Areva reportedly rose 10 percent to 428 million euros (570.8 million dollars) in 2004, much of which was contributed by its successful overseas services.