Regional Power Grid Connectivity for
Sustainable Development in North-East Asia
Policies and Strategies
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Regional Power Grid Connectivity for
Sustainable Development in North-East Asia
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Policies and Strategies
Acknowledgements
The preparation of this report was led by the Energy Division
of the United Nations Economic and Social Commission for
Asia and the Pacific (ESCAP) under the direction of Hongpeng
Liu, Director of the Energy Division, ESCAP, Michael
Williamson, Section Chief of the Energy Division, ESCAP and
Matthew David Wittenstein, Section Chief of the Energy
Division, ESCAP.
Maria Pastukhova, German Institute for International and
Security Affairs (SWP), was the primary author.
Valuable contributions and comments were provided by:
Prasoon Agarwal, Regional Programme Officer for Asia-
Pacific, International Renewable Energy Agency (IRENA);
Ganbold Baasanjav, Director, ESCAP Subregional Office for
East and North-east Asia; Demchigjav Chimeddorj, Director
of Business Strategy and Planning, Erdenes Mongol; Daniel
del Barrio Alvarez, University of Tokyo; Gao Yi, Global Energy
Interconnection Development and Cooperation Organisation
(GEIDCO); Choong-Hee Han, Ministry of Foreign Affairs,
Republic of Korea; Jung-hwan Kim, Asia Development
Bank (ADB); Sung Eun Kim, Programme Officer, UN ESCAP
Subregional Office for East and North-East Asia; Hyun Ko,
Regional Programme Officer, IRENA; Lei Xiaomeng, China
Electricity Council (CEC); Mi-Jin Lee, Researcher, ESCAP
Subregional Office for East and North-East Asia; Tumenjargal
Makhbal, Mongolian Energy Economic Institute; David
Morgado, Senior Energy Specialist, Asian Infrastructure
Investment Bank (AIIB); Takashi Otsuki, Institute of Energy
Economics Japan (IEEJ); Alexandra Prodan, Associate
Professional for Central Asia, IRENA; Sergey Podkovalnikov,
Melentiev Energy Systems Institute; Rao Jianye, Director,
Electric Power Planning and Engineering Institute (EPPEI );
Takanori Tomozawa, Ministry of Economy, Trade and Industry
(METI), Japan; Jae Young Yoon, Korea Electrotechnology
Research Institute (KERI).
Robert Oliver edited the manuscript. The cover and design
layout were created by Lowil Espada.
Katie Elles, Kavita Sukanandan, Linn Leigland, Sompot
Suphutthamongkhon and Chavalit Boonthanom of the ESCAP
Strategic Publications, Communications, and Advocacy
Section, coordinated the dissemination of the report.
Contents
Acknowledgements iiList of Figures vList of Tables viAbbreviations and acronyms viiExecutive summary x
Introduction Towards sustainable energy for all through regional power grid interconnection 1
A. Purpose and structure of this report 1B. Studies on power grid interconnection in North-East Asia: A review 3C. RegionalspecificsofNorth-EastAsia:Inherentobstaclesandnew
stimuli for cooperation on power grid connectivity 6D. Structure of this report 8
Background Energy systems in North-East Asia 9
A. Totalfinalenergyconsumption 12B. Renewable potential of the region 16C. SustainableDevelopmentGoal7:StateofplayinNorth-EastAsia 23D. PowersectorsinNorth-EastAsia 27
Power grid connectivity in North-East Asia Current status and possible ways forward 30
A. Existing cross-border power grid interconnections in North-East Asia 30
B. Proposed power grid interconnection projects 31
Sustainable power system development in North-East Asia Benefits of cooperation and challenges 37
A. Economic aspects 38B. Technical/operational aspects 44C. Environmental and climate aspects 48D. Social aspects 50
1
2
3
4
Towards regional cooperation on North-East Asian power grid connectivity Potential next steps and policy recommendations 54
A. Policy recommendations for North-East Asia power system connectivity 55
Strategy 1. Building trust and political consensus on a common vision for power grid connectivity 57
Strategy2.DevelopingaMasterPlanforregionalpowergridinterconnection 59
Strategy3.DevelopingandimplementingIntergovernmental Agreements, creating a broader institutional framework 60
Strategy 4. Coordinating, harmonizing and institutionalizing policy andregulatoryframeworks 62
Strategy5.Movingtowardsmultilateralpowertradeandcreatingcompetitive cross-border electricity markets 63
Strategy 6. Coordinating cross-border transmission planning and system operation 65
Strategy7.Mobilizeinvestmentsincross-bordergridandgenerationinfrastructure 66
Strategy 8. Capacity-building and sharing of information, data and best practices 67
Strategy 9. Ensuring that energy connectivity initiatives are compatible with the Sustainable Development Goals 68
Conclusion 69
Appendices
AppendixI.Overviewofregionalandcross-borderinterconnectionproposalsforNorth-EastAsia 72
AppendixII:RenewablepotentialofNorth-EastAsia(maps) 87AppendixIII:PowersystemsinNorth-EastAsia–countryprofiles 90
People’s Republic of China 90DemocraticPeople’sRepublicofKorea 92Japan 95Mongolia 98Republic of Korea 101RussianFederation(focusonSiberiaandFarEast) 105
References and literature review 109
5
6A
List of Figures
Figure 1 _ Possiblecontributionsofincreasedpowergridconnectivityin North-East Asia to SDG 7 3
Figure 2 _ Studiesbyyearofpublication,1994-2020 4Figure 3 _ Studiesbythecountryoftheissuinginstitution 4Figure 4 _ IssuesaddressedbythestudiesonNorth-EastAsiaconnectivity 5Figure 5 _ Interconnectionprojectsinfocus 6Figure 6 _ Totalprimaryenergysupplybysource,2018(Mtoe) 10Figure 7 _ TPES,RegionalEnergyMix(2018) 11Figure 8 _ TotalfinalenergyconsumptioninNEAbysource(2018) 12Figure 9 _ Self-sufficiency(totalenergyproduction/TPES,%),2018 13Figure 10 _ ElectricityconsumptioninNorth-EastAsia,1990-2018,TWh 13Figure 11 _A TotalCO2emissionsbycountry,1990-2018(MtofCO2) 14Figure 11 _B CO2 emissions growth by country, compared to the 1990 level,
1990-2018(%) 14Figure 12 _ CO2intensityoftheenergymixbycountry,1990-2018(tCO2/toe) 15Figure 13 _ ThePacific“RingofFire” 17Figure 14 _A Renewableelectricitygenerationbycountry,2018(TWh) 18Figure 14 _B RenewableelectricitygenerationinNEA,1990-2018(TWh) 18Figure 14 _C Renewablepowergenerationmixbycountryandsource,2018(%) 19Figure 15 _ GlobalLCOEfromnewlycommissionedutility-scalerenewablepower
generationtechnologies,2010-2019 20Figure 16 _ Averagecrystalline-siliconPVmoduleefficiency,2006-2018 21Figure 17 _ Proportionofpopulationwithprimaryrelianceoncleancooking
facilitiesinChina,DPRKandMongolia,2000-2018(%) 24Figure 18 _ Shareofmodernrenewablesintotalfinalenergyconsumption
bycountry(%),2000-2017 25Figure 19 _ EnergyintensitymeasuredintermsofprimaryenergyandGDP,
2000-2017 26Figure 20 _ ProposedcourseoftheAsianSuperGrid 33Figure 21 _ ProposedNorth-EastAsianPowerSystemInterconnectionby2036 34Figure 22 _ ProposedNorth-EastAsiaEnergyInterconnectionby2050 35Figure 23 _ Photovoltaicpowerpotential 87Figure 24 _ Windpowerpotential:Windpowerdensity 88Figure 25 _ Hydropowerpotential(GWh/year) 89Figure 26 _ China’sUHVpowertransmissionlines 91Figure 27 _ PowergridoftheDemocraticPeople’sRepublicofKorea 94Figure 28 _ High-voltagepowergridofJapan 96Figure 29 _ PowergridofMongolia 100Figure 30 _ RepublicofKoreapowergrid 103Figure 31 _ RussianFederationpowergrid:SiberiaandtheRussianFarEast 107
List of Figures
List of Tables
Table 1 _ KeyenergystatisticsforNorth-EastAsianeconomies,2018 10Table 2 _ RenewableenergytargetsofNEAcountriesfor2030
andprogresstodate. 21Table 3 _ RenewableenergypoliciesinplaceinNorth-EastAsia 22Table 4 _ IndicatorsofSDG7,bycountry,inNorth-EastAsia 23Table 5 _ PowersectorsinNorth-EastAsia:Keyfigures 27Table 6 _ Powergenerationresources,bycountry,inNorth-EastAsia 28Table 7 _ Overviewofpowersystemstructure,bycountry,
inNorth-EastAsia 29Table 8 _ Existingcross-borderinterconnectionsinNorth-EastAsia 31
List of Tables
Abbreviations and acronyms
AC alternating current
ADB Asian Development Bank
AFTA ASEAN Free Trade Agreement
AIIB Asian Infrastructure Investment Bank
APERC Asia Pacific Energy Research Centre (Japan)
ASEAN Association of Southeast Asian Nations
ASG Asian Super Grid
AuES Altai-Uliastai Electricity System
BAU business as usual
BIMSTEC Bay of Bengal Initiative for Multi-Sectoral Technical and Economic
Cooperation
BRI Belt and Road Initiative
CCGT Combined Cycle Gas Turbine
CEC China Electricity Council
CEPRI China Electric Power Research Institute
CES Central Electricity System (Mongolia)
CHP combined heat and power
CSG China Southern Power Grid
CSGC China State Grid Company
CSP concentrated solar power
DC direct current
DPRK Democratic People’s Republic of Korea
EAEU Eurasian Economic Union
EBRD European Bank for Reconstruction and Development
ECT Energy Charter Treaty
EDF Électricité de France S.A.
EES Eastern Electricity System (Mongolia)
EPPEI Electric Power Planning and Engineering Institute (China)
EPS Electric Power System
ERINA Economic Research Institute for North-East Asia (Japan)
ESCAP United Nations Economic and Social Commission for Asia and the Pacific
ETS Emissions Trading System
FGC UES Federal Grid Company of Unified Energy System (Russia)
FiT Feed-in Tariffs
GCCIA Gulf Cooperation Council Interconnection Authority
GDP Gross Domestic Product
GEIDCO Global Energy Interconnection Cooperation Organization
GTI Greater Tumen Initiative
HAPUA Heads of ASEAN Power Utilities/Authorities
HPP Hydropower Plant
Abbreviations and acronyms
vii
HVAC High-voltage alternating current
HVDC High-voltage Direct Current lines
IEA International Energy Agency
IEC International Electrotechnical Commission
IEEE Institute of Electrical and Electronics Engineers
IEEJ Institute of Energy Economics Japan
IPS integrated power system
IRENA The International Renewable Energy Agency
ISO International Organization for Standardization
JAERO Japan Atomic Energy Relations Organization
JPEX Japan Electric Power Exchange
KEA Korea Energy Agency
KEDO Korean Peninsula Energy Development Organization
KEEI Energy Economics Institute of the Republic of Korea
KEPCO Korea Electric Power Corporation
KEPRI Korea Electric Power Research Institute
KERI Korea Electrotechnology Research Institute
KESRI Korea Electrical Engineering and Science Research Institute
KIC Kaesong Industrial Complex
KIEP Korea Institute for International Economic Policy
KOREC Korea Energy Regulatory Commission
KPX Korean Power Exchange
LCOE levelized cost of energy
MEEI Mongolian Energy Economics Institute
METI Ministry of Economy, Trade and Industry (Japan)
MOTIE Ministry of Trade, Industry and Energy of Korea
MoU Memorandum of Understanding
MUST Mongolian State University of Science and Technology
NAPSI North-East Asia Power System Interconnection
NDCs Nationally Determined Contributions
NDRC National Development and Reform Commission
NDRC National Development and Reform Commission (China)
NEA National Energy Administration (China)
NEA National Energy Administration (China)
NEAEI North-East Asia Energy Interconnection
NEAREST North-East Asian Region Electric System Ties
NEARPIC North-East Asia Power Interconnection and Cooperation
NEASG North-East Asian Super Grid
NRA Nuclear Regulation Authority (Japan)
OCCTO Organization for Cross-regional Coordination of Transmission Operators
(Japan)
OECD Organisation for Economic Co-operation and Development
PAHs polycyclic aromatic hydrocarbons
viii
Regional Power Grid Connectivity for Sustainable Development in Northeast AsiaPolicies and Strategies
PPP Purchasing power parity
RAO UES Unified Energy System of Russia
RCEP Regional Comprehensive Economic Partnership
REC Renewable Energy Certificate
REI Renewable Energy Institute (Japan)
RES-E renewable energy sources for electricity
RFE Russian Far East
ROK Republic of Korea
Rosseti PJSC Rosseti, Public Joint Stock Company
RPS Renewable Portfolio Standard
SAPP South African Power Pool
SB RAS Siberian Branch of Russian Academy of Sciences
SCADA supervisory control and data acquisition
SDGs Sustainable Development Goals
SGCC State Grid Corporation of China
SIEPAC Central American Electrical Interconnection System
Skoltech Skolkovo Institute of Science and Technology
TEC Total electricity consumption
TEPCO Tokyo Electric Power Company
TFC total final energy consumption
TPES Total primary energy supply
TPP Thermal Powerplant
TSO Transmission System Operator
UHV ultra-high voltage
UNCTAD United Nations Conference on Trade and Development
UNFCCC United Nations Framework Convention on Climate Change
WAMS wide-area monitoring systems
WB The World Bank
WES Western Electricity Sytem (Mongolia)
WHO World Health Organization
Energy and power units
bcm billion cubic metres
GW gigawatt
GWh gigawatt hour(s)
KW kilowatt
KWh kilowatt hour(s)
Mt megatonnes
MW megawatt
MWh megawatt hour(s)
toe tonnes of oil equivalent
TW terrawatt
TWh terawatt hour(s)
Abbreviations and acronyms
ix
Executive summary
Proposals to interlink the power grids of the countries of North-East Asia1 stretch back to at least
the early 1990s. Since then, multiple shifts in the energy landscape at the global, regional and
national levels have taken place, creating a number of drivers for increased cooperation to develop
regional power grids. Among the most profound shifts are the rising cost competitiveness of
renewable energy sources, such as wind and solar PV; cost and efficiency improvements in long-
distance transmission technologies; the establishment of relevant regional and intercontinental
integration projects, including the Belt and Road Initiative; and the pressing need to decarbonize
the energy sector, in line with the commitments made under the Paris Agreement on Climate
Change.
This report examines the opportunity to enhance cross-border power grid connectivity in
North-East Asia. Based on a comprehensive literature review of more than 130 studies and
contributions by national experts, this report presents policymakers and other stakeholders
with an overview of the potential benefits of regional power grid interconnection, with a focus
on sustainability. It also describes potential challenges that will need to be addressed to ensure
the success of integration efforts and to better link these efforts to the transition to low-carbon
power systems. Finally, the report proposes a set of recommendations designed to guide and
facilitate cooperation between the Governments of North-East Asia and other stakeholders
to advance the process of regional power system integration.
A. Why North-East Asia should support power system integration
The six countries that make up North-East Asia are collectively endowed with the energy
resources, technological expertise, financial resources and human capital necessary to develop
a functioning regional power grid. The varying economic, climatic and geographical conditions
across North-East Asia create synergies that make regional interconnections an economically
and environmentally beneficial option. At the same time, this diversity brings with it challenges
that require coordinated interventions to overcome.
Cooperation on power grid connectivity will allow the countries of North-East Asia to leverage
regional diversity, and to profit from the economic, environmental and social benefits that
interconnected power systems can bring.
For example, power interconnection opens new markets for resource-rich countries, while
providing countries with high or growing demand or limited potential to develop renewable
resources domestically as well as access to sources of low-cost, low-carbon electricity.
Integration allows regions to do more with less – avoiding investments by enabling power
systems to serve demand with less generation and transmission than would otherwise be
necessary, and improving the economies of scale for projects that are built. Regional integration
linked to sustainability efforts can also reduce heavy air pollution – a particular problem in the
urban areas of China, Mongolia and the Republic of Korea – and carbon emissions. This, and
the economic development associated with the integration process such as the development
1 Defined,inthiscontext,asthePeople’sRepublicofChina,DemocraticPeople’sRepublicofKorea,Japan,Mongolia,RepublicofKoreaandRussianFederation.
x
Regional Power Grid Connectivity for Sustainable Development in Northeast AsiaPolicies and Strategies
of new transmission lines, also has considerable potential to improve social welfare, raise living
standards and contribute to the economic development.
Finally, enhancing regional power grid interconnection can contribute to strengthening
regional energy security and the stability of the regional power system. It can increase the
overall resilience of the regional power system by reducing reliance on fossil fuel imports and by
diversifying the electricity supplies of the interconnected countries. It will also support broader
regional integration and peace by providing a new framework for cooperation and creating
mutual positive interdependencies between the North-East Asian countries.
B. How to move forward
Power system integration is a process that requires work across a range of technical, economic,
policy and social issues. Based on the research done for this paper, and guided by the draft
United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) Electricity
Connectivity Roadmap for Asia and the Pacific,2 this report outlines a series of strategies to
advance interconnection in North-East Asia in an efficient and sustainable manner.
The first strategy, “Building trust and political consensus on power grid connectivity”, stresses
the importance of political will. Support at the political level is essential, and should be enabled
through the establishment of an inclusive governmental dialogue and engagement with national
stakeholders.
The second strategy, “Developing a Master Plan for regional power grid interconnection”, builds
on the ongoing work of the utilities and other actors to provide a vision for North-East Asia that
demonstrates the feasibility and benefits of integration.
The third strategy “Developing and implementing Intergovernmental Agreements, creating
a broader institutional framework”, emphasizes that successful cooperation on power grid
connectivity requires the presence of transparent and functional institutional frameworks.
Appropriate institutional arrangements can be developed through platforms like the North-
East Asia Power Interconnection and Cooperation (NEARPIC) Forum, which has been enabling
high-level dialogue on this topic since 2016.
The fourth strategy, “Coordinating, harmonizing and institutionalizing policy and regulatory
frameworks”, highlights the need for cooperation on relevant policy and regulatory issues,
such as harmonization of technology standards and grid codes to ensure efficient and secure
integration.
The fifth strategy, “Moving towards multilateral power trade and creating competitive markets
for cross-border electricity trade”, suggests the gradual development of regional market
frameworks to support the power trade. Short-term steps such as harmonized bilateral trading
agreements and a standardized pricing methodology can lay the foundation for the development
of full multilateral trading.
2 Moredetailsabouttheninestrategies,includedrelatedanalyses,canbefoundinthedraft“ElectricityConnectivityRoadmapforAsiaandthePacific:Strategiestowardsinterconnectingtheregion’sgrids”.Availableathttps://www.unescap.org/publications/electricity-connectivity-roadmap-asia-and-pacific-strategies-towards-interconnecting.
Executive summary
xi
https://www.unescap.org/publications/electricity-connectivity-roadmap-asia-and-pacific-strategies-towards-interconnectinghttps://www.unescap.org/publications/electricity-connectivity-roadmap-asia-and-pacific-strategies-towards-interconnecting
The sixth strategy, “Coordinating cross-border transmission planning and system operations”,
focuses on enabling efficient technical coordination and seamless operations across borders.
This includes joint emergency response mechanisms, coordinated ancillary services and the
secure sharing of non-sensitive data.
The seventh strategy, “Mobilizing investment in cross-border grid and generation infrastructure”,
focuses on the need to develop more cross-border power grid infrastructure and generation
assets. A transparent and coherent legal framework for power sector investments, or including
power issues in a full multilateral trade agreement, would help to create a favourable investment
climate.
The eighth strategy, “Capacity-building and sharing of information, data, and best practices”,
points to the benefits of sharing best practices and joint capacity-building. Tools such as ESCAP’s
Asia Pacific Energy Portal (www.asiapacificenergy.org) can support information sharing, while
dialogue with communities and increased public awareness of the benefits of interconnection
can help to secure local support.
The ninth, cross-cutting strategy, “Ensuring that energy connectivity initiatives are
compatible with the Sustainable Development Goals”, stresses the importance of considering
cross-border projects holistically. This includes considering the needs of the poorest and
most vulnerable population groups, and integrating sustainable energy guidelines into power
connectivity projects.
Taken together, these strategies provide a path forward for increased power integration in
North-East Asia. Most importantly, they support integration in such a way as ensure alignment
with, and even strengthen, national efforts to develop secure, sustainable power sectors and
to meet the Sustainable Development Goals.
While much work remains to be done, momentum behind increased integration is building, and
the foundation for success is already being laid out. Regional power system integration is a tool,
not a goal. Properly guided, increased connectivity will support the development of a secure,
sustainable and affordable power system across North-East Asia.
xii
Regional Power Grid Connectivity for Sustainable Development in Northeast AsiaPolicies and Strategies
http://www.asiapacificenergy.org
IntroductionTowards sustainable energy for all through regional power grid interconnection
A. Purpose and structure of this report
Purpose of this report
CooperationonpowergridconnectivityinNorth-EastAsia3isa
topicthathasbeenthefocusofmuchresearchformorethanthree
decades.Numerousstudieshavebeenconducted,commissioned
byresearchinstitutions,nationalGovernmentsandinternational
organizations.However,despitethisinterestandtheobviousurgency
ofthistopic,noconsolidatedvisionforpowergridconnectivity
inNorth-EastAsiahasbeendeveloped.Onemajorreasonisthe
inherentcomplexityoftheissueofpowergridconnectivity,given
thevastarrayofaspectsinvolved.Thus,itcomesasnosurprisethat
theexistingstudies,thoughnumerousandverydetailed,coveronly
limiteddimensionsoftheoverallissue.
3 Therearenumerousdefinitionsof“North-EastAsia”,amongthemthosebasedonphysical(geographic),economic,historicandculturalcharacteristics.ForthepurposesofthisreportNorth-EastAsiaisdefinedinlinewiththeregionalcategorizationemployedbytheUnitedNations–asubregionofAsia-PacificconsistingofsixmemberStates:People’sRepublicofChina,DemocraticPeople’sRepublicofKorea,Japan,Mongolia,RepublicofKoreaandRussianFederation.
11
Thepurposeofthisreportisthreefold.First,itaimsto
exploreandconsolidatetheabundantyetscattered
bodyofknowledgeonpowergridconnectivityinNorth-
EastAsia,inordertocreateatransparentoverview
of the existing cross-border interconnections and
arrangementsintheregion,andtheinterconnection
initiativesproposeduptonow.Thisanalysisfocuses
onthebenefitsthatcanbegainedfromcooperation
onconnectivityand thechallenges thathave tobe
addressedintheinterconnectionprocess.
Second,basedonthisoverview,thisreportaimstomap
thescopeforactionbythemainstakeholdersinvolved,
amongthemmemberStates,subregionalorganizations,
international financial institutions, international
organizations,theprivatesectorandacademia.Inline
withthedraftRegionalRoadmapforPowerSystem
Connectivity,developedbyESCAP’sExpertWorking
GrouponEnergyConnectivity(UNESCAP,2019),this
reportofferspolicyrecommendationsforaddressing
thechallengesaheadandformakingthemostofthe
benefitsthataregionallyinterconnectedpowersystem
inNorth-EastAsiahastooffer.
Third,inlinewiththeSustainableDevelopmentAgenda
2030,adoptedbytheUnitedNationsMemberStates
in 2015, this report aims to examine the potential
ofpowergridconnectivityinNorth-EastAsiafroma
sustainabilityperspective.Researchcarriedoutto-date
hasnotfocusedonthelinkagesbetweenpowergrid
interconnectionandsustainabledevelopment.Asthe
reviewoftheexistingknowledgedatabasewillshow,
whiletheeconomicbenefits,technicalspecifications
aswellaspoliticalandsecurityaspectsofcooperation
towardsinterconnectedpowersystemsintheregionare
thecentralfocusforanalysis,thesustainabilityofthe
envisagedinterconnectionmodelsisrarelyaddressed.
Thisreport,therefore,attemptstomakesenseofthe
resultsofferedbytheexistingstudiesandtoofferpolicy
adviceforcooperationtowardsasustainablepowergridconnectivityinNorth-EastAsia.
Sustainability and power grid interconnection: Conceptual framework of the report
AsdefinedbytheBrundtlandCommission’sreport,
Our Common Future,sustainabledevelopmentisthe“development thatmeets theneedsof thepresent
withoutcompromisingtheabilityoffuturegenerations
tomeettheirownneed”and,assuch,isahighlycomplex
andmultidimensionalconcept.Thiscomplexityisbest
demonstratedbytheseventeenadoptedSustainable
DevelopmentGoals(SDGs),eachofwhichhasseveral
furthersub-issues(targetsandindicators)tobemet.
Forthepurposesofthisreport,theterm“sustainability”
willbeusedasdefinedbytheUnitedNationsthrough
theseventeenSDGs.
It has become increasingly important to consider
changesinglobalandnationalenergysystemsfroma
sustainabilityperspective.Asidefromtheobviouslong-
termmeritofpursuingasustainableenergysystem,it
allowscountriesandregions–eachofwhichhavetheir
ownandoftenverydifferentpolicyagendas–towork
towardsacommonvision.Fundamentaltoeconomic
developmentandsocialwelfare,energyisperceived
tohaveastrategicvalueand,assuch,isoftenframed
asamatterofnationalinterest.Thisisreflectedinthe
nationalenergysecurityagendas,whicharebasedon
theeconomicandpoliticalinterestsoftherespective
countriesandarethereforeoftenverydifferent,oreven
seeminglyconflicting.Theseperceiveddifferencesare
oneofthemajorobstaclestocooperationonenergy
security,be itat thesubregional,regionalorglobal
scope.
Therecentlyemergedpatternsofinterstatecooperation
onenergytransitionfacethesamechallenge;thereisno
universallyacknowledgeddefinitionofenergytransition,
and each country has its own preferences for the
pathway,meansorthedesiredenergysourcestowards
thefuturelow-carbonenergysystem.Approachingboth
issuesofenergysecurityandenergytransitionfrom
asustainabilityangleprovidesnationalGovernments
withthenecessarycommongroundforcooperation.
Regardlessofthepolitical,economicorevengeographic
conditionsoftherespectivecountries,theaspirational
futureenergysystemisonewhichprovidesuniversal
accesstoaffordable,reliable,sustainableandmodern
energy(PastukhovaandWestphal,2020).Thishasbeen
encapsulatedastheSustainableDevelopmentGoalon
Energy(SDG7)withintheSustainableDevelopment
Agenda,adoptedbytheGovernmentsof193United
NationsMemberStates.
Inasimilarmanner,approachingcooperationonpower
gridconnectivityfromthisperspectivedoesnotonly
allowthenationalGovernmentsandotherstakeholders
tocontributetoasustainablefuture.Italsoprovides
themwith the foundation onwhich they can build
auniversallyagreed,commonvisiononpowergrid
connectivity.
Regional Power Grid Connectivity for Sustainable Development in Northeast AsiaPolicies and Strategies
2
Thereviewofthebenefitsandchallengesoftheregional
power grid interconnection inNorth-EastAsiawill
thereforebestructuredalong four thematicpillars
(figure1).Thefirstthreearegenerallyacknowledged
to be the three main pillars of sustainability –
economic,environmentalandsocial.Thefourthwill
address technical benefits and challenges of such
interconnection.Due to the fact thata sustainable
powersystemofthefutureisuniversallyacknowledged
tobebasedonnew,low-carbontechnologiesaswellas
increasinglyinterconnectedanddigitalizedmeansof
operationandcontrol,thisreportdeemsthepillaron
technicalaspectstobenecessaryforacomprehensive
picture.
B. Studies on power grid interconnection in North-East Asia: A review
This report is basedon129 region-specific studies
conductedonpowergridconnectivityissuesforthe
past three decades (figure 2). While certainly not
exhaustive,thelistoftheanalysedstudiesrepresents
a solid knowledge base which, when consolidated,
offersacomprehensiveoverviewoftheinterconnection
initiatives proposed up to date, the benefits and
challengesofthesespecificinitiativesaswellasthe
generaldesirabilityofaregionalpowerinterconnection.
Withfirststudiesbeingpublishedinthemid-1990s–
the“oldest”inthelistofreviewedpaperswaspublished
in1994,byresearchersfromtheMelentyevEnergy
Figure 1 _ Possible contributions of increased power grid connectivity in North-East Asia to SDG 7
EconomicTe
chin
cal a
nd
Social
Environmental
How various benefits
of power grid connectivity in NEA
can contribute to SDG 7
Avoided costs through non-
construction of new (domestic)
transmission lines
Capacity-building in electricity and
renewables sector
Avoided costs due to decreasing
need for storage capacities
Contributing to better human health
by alleviating air pollution
Avoided costs through non-
construction of new generation
capacities
Avoiding environmental
degradation and loss of habitat
Reduced electricity prices
Improving social welfare and
increasing living standards of the
poorest population groups
Reduced cost of ancillary
services
More investments in new
technologies and infrastructure
Alleviating energy poverty and granting high-quality access
to energy and energy services
Synergies from spatial distribution of renewable
energy sources
Synergies from combining different peak loads by season and time zone
Increased stability of the regional power system
Alleviating atmospheric pollution
Curtailing CO2 emissions and accelerating the achievement
of national climate goals
Reducing other environmental risks through enabling
renewable power generation
oper
atio
nal
Introduction
3
Towards sustainable energy for all through regional power grid interconnection
SystemsInstitute(Belyaevetal.,1994)–theknowledge
baseonpowergrid interconnectionforNorth-East
Asiahasbeenaccumulatingfornearlythreedecades.
Asisdemonstratedbythetimelinerepresentingthe
numberofstudiespublishedinvariousyears,research
workonpowergridinterconnectionssurgedin2018,
whichmightberelatedtoseveralfactors.Amongthese
are:changesinthepoliticalandeconomicenvironment
increasing urgency of the issue of connectivity;
intensifiedinternationaldiscussionsontheissue,i.e.,
withintheframeworkoftheyearlyNorth-EastAsia
PowerInterconnectionandCooperation(NEARPIC)
Forum;andtheemergenceoftheGlobal Power Grid Interconnection, a journal issued by the GEIDCOfeaturingstudiesonconnectivity.Compilationofthe
database was completed by late September 2020.
Consequently,thisreportcannotmakeanaccurate
statementonthenumberofstudiespublishedin2020.
However,giventhefactthatthelateststudiesavailable
at that timeweredatedsummer2020, it is safe to
assumethatresearchactivityonthisissuehasremained
onalevelcomparabletothatof2019.
Althoughaboutonethirdofthestudieshavebeenthe
resultofinternationalcooperationbetweenexperts
fromseveralinstitutions,themajorityofthereviewed
researchhasbeencommissionedbyand/orconducted
undertheauspicesoftheresearchinstitutionsbasedin
China,Japan,Mongolia,theRepublicofKoreaandthe
RussianFederation(figure3).
InChina,theresearchisledwithintheChinaElectric
Power Planning and Engineering Institute (EPPEI),
Global Energy Interconnection Development and
CooperationOrganization(GEIDCO),ChinaElectric
Power Research Institute (CEPRI), In Tech China,
China Datang Corporation and State Grid Energy
ResearchInstituteaswellbytheexpertsrepresenting
Figure 2 _ Studies by year of publication, 1994-2020
Num
ber
30
20
10
01994 1997 1999 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Figure 3 _ Studies by the country of the issuing institution
People’s Republic of China
Japan
Mongolia
Republic of Korea
Russian Federation
Other/joint studies
0 5 10 15 20 25 30 35 40 45
Regional Power Grid Connectivity for Sustainable Development in Northeast AsiaPolicies and Strategies
4
severaluniversities–amongthemDalianUniversity
of Technology, Tsinghua University, Xi’an Jiaotong
UniversityandLingnanUniversity(HongKong).
AmongtheJapaneseinstitutionsactivelyengagedin
researchonthesetopicsaretheRenewableEnergy
Institute(REI),EconomicResearchInstituteforNorth-
EastAsia(ERINA),InstituteofEnergyEconomicsJapan
(IEEJ)andtheaffiliatedAsia-PacificEnergyResearch
Centre(APERC),MizuhoInformationandResearch
Institute,TEPCOResearchInstitute,TohokuUniversity
andNagaokaUniversityofTechnology.
InMongolia,primarilytheMongolianEnergyEconomics
Institute(MEEI)andtheMongolianStateUniversityof
ScienceandTechnology(MUST)areworkingontheissue
ofpowergridconnectivity.Althoughonlyonestudy
publishedbyresearchersfromMUSTisreviewedwithin
thisreport,presentationsonthenationalpowergrid
situationandtheMongolianvisionoftheregionalpower
gridinterconnectionbytheMEEIexpertsonnumerous
occasions,duringtheNEARPICevents,havebeentaken
intoaccountwhendraftingthecountry’spowersystem
profile.
ExpertsstudyingpowergridconnectivityinRepublic
ofKorearepresentEnergyEconomicsInstituteofthe
RepublicofKorea(KEEI),TheKoreaElectrotechnology
Research Institute (KERI), Korea Institute for
InternationalEconomicPolicy(KIEP),KEPRI/KEPCO
researchinstitute,KoreaElectricalEngineeringand
ScienceResearchInstitute(KESRI),SamsungEconomic
Research Institute, Seoul National University, Silla
University,DaejinUniversityandGyeongsangNational
University,HongikUniversity
IntheRussianFederation,themainbodyofresearchis
beingpublishedbyexpertsfromtheMelentievEnergy
Systems Institute (SO RAN), while other research
institutes,amongthemSkolkovoInstituteofScience
andTechnologyandKhabarovskEconomicResearch
Institute,areaddressingtheissue.
The international organizations and research
institutionsfromoutsidetheregionthatareworking
on the issue include the Institute of Electrical and
ElectronicsEngineers(IEEE),EnergyCharter,theAsian
DevelopmentBank(ADB),theInternationalEnergy
Agency(IEA),andtheInternationalElectrotechnical
Commission(IEC).Theissuesaddressedbythestudies
onNorth-EastAsiaconnectivityareshowninfigure4.
Whenitcomestothethematicscope,technicaland
economicissuesdominatetheanalysis.Theinherent
questionaddressedbythemajorityofstudiesisrelated
to the integrated value of enhancing cross-border
transmission links or developing a regional power
gridinterconnection.Variouspowerinterconnection
initiativesareanalysedregardingtheirpotentialto
contributetoawidearrayofissues,suchasreducing
electricity cost, improving energy infrastructure,
improvingenergysecurity,drivingeconomicgrowth,
Figure 4 _ Issues addressed by the studies on North-East Asia connectivity
units
60
50
40
30
20
10
0 Technical issues Economic issues Institutions/governance
Environmental/climate-related
Policy/security aspects
Regulatory aspects
Introduction
5
Towards sustainable energy for all through regional power grid interconnection
reducingenvironmentalemissionsandcreatingnew
employmentopportunities.
Itisimportanttonotethattheissuesunderfocusdiffer
amongtheresearchinstitutesofthedifferentNorth-
East Asian countries, which is an indication of the
differencesintherespectiveenergypolicyagendaof
thesecountries.WhileJapaneseandKoreanresearch
institutespaymoreattentiontoelectricitycost,design
ofthepowersystemandsecurityofenergysupply,the
RussianFederationandMongoliafocusonthepotential
toboosteconomicgrowthandthecreationofemployed
positions.AnotherfocusofstudiesledbyKoreanexperts
areenvironmentalconcernstogetherwiththeissueof
emissionsreduction,whicharealsothemajorfocusof
theresearchconductedbyChineseinstitutions.Figure5
illustratestheInterconnectionprojectsnowinfocus
Areviewoftheinterconnectionprojectsinfocusofthe
respectivestudiesshowsthat,ratherthanaconcrete
vision for regional power grid interconnection, the
existingresearchaddressesvariousaspectsofpower
grid connectivity applied to the North-East Asian
region. In contrast to that, another major part of
thestudiespresentsmoredetailedestimationsand
feasibilitystudiesofconcretebilateralinterconnection
projects. Although studies of concrete regional
interconnectioninitiatives–includingtheNorth-East
Asia Super Grid, North-East Asian Region Electric
System Ties (NEAREST), North-East Asia Power
System Interconnection (NAPSI), Asian SuperGrid
andGobitecaswellastheNorth-EastAsiansection
oftheGlobalEnergyInterconnection(NEAEI)4–have
beenpublished,particularlyintherecentyears,the
dominantfocusongeneralissuesofconnectivityand
bilateralinterconnectionsdemonstratethecurrentlack
ofacommonvisiononpowergridconnectivityamong
North-EastAsiancountries.
C. Regional specifics of North-East Asia: Inherent obstacles and new stimuli for cooperation on power grid connectivity
Therearemanyexamplesof successful integration
ofthepowermarketsontheregionalscale,withthe
mostprominentexamplesbeingtheEuropeanandthe
NorthAmericanpowergrids.Theseexperiencescannot,
however,bedirectlytransferredtoNorth-EastAsia,
whereseveralregion-specificfactorshavelongimpeded
cooperationonregionalpowergridconnectivity.
First,geographicconstraintshavelongbeen,andstill
remain,amajorobstacletothedevelopmentofregional
interconnectionties.Forexample,buildingaregionally
interconnected power system would inevitably
4 Focusononeoftheseinterconnectioninitiativesis,toalargeextent,predeterminedbytheinstituteoforiginoftherespectiveinitiatives.Forexample,theNEARESTinitiativehasbeendevelopedbyKERI,GEIbyGEIDCOandtheAsianSuperGridbytheRenewableEnergyInstitute.
Figure 5 _ Interconnection projects in focus
units
60
50
40
30
20
10
0Asia Super
Grid+GobitecGEI/NEAEI North-East Asia
Super GridNEAREST NAPSI Bilateral
InterconnectionsOther Regional (Multilateral)
Regional Power Grid Connectivity for Sustainable Development in Northeast AsiaPolicies and Strategies
6
involveconstructionofsubmarinetransmissionlines,
which,untilveryrecently,havenotbeenconsidered
cost-efficient.Longdistancesbetweenmajorpower
generationcentresandloadcentresaswellasrough
terraininmanypartsofcontinentalNorth-EastAsia
arefurthercomplicationsthatrequireimplementation
of technically complex solutions inorder toenable
powerexchangebetweenthecountries.Lackofthe
infrastructure necessary for the construction of
transmission lines in the lesspopulatedareasadds
another challenge that even further increases the
upfrontcostofpowerinterconnectionprojects.
Second, the perceived need for cross-border
interconnectionshasnotbeenverypronouncedinthe
pastthreedecades.Untilrecently,electricitydemand
intheNorth-EastAsiancountrieshasbeenlargelymet
bydomesticpowergeneration(withtheexceptionof
Mongolia).
Finally,politicaltensionsintheregionremainthebiggest
obstacleforthecooperationonregionalpowergrid
connectivity.Althoughtherehavebeennolargemilitary
conflictsintheregionsincetheendoftheKoreanWar,
historicalsentiments,multipleterritorialdisputesand
geopoliticalrivalriesimpederegionalcooperation.The
countriesofNorth-EastAsiawillhavetoovercome
pastpoliticaldisagreementsinordertomovetowards
regionalcooperationonpowergridconnectivity.Once
thefirststephasbeentaken,cooperationonpower
gridconnectivityitselfcouldbecomeacentralimpetus
towardsdeeperpoliticalintegration,contributingto
peaceandsecurityintheregion.
Despitetheaforementionedchallenges,momentum
tobegincooperationhasbeenbuildingupforabouta
decadeandrecentpoliticalandeconomicdevelopments,
bothontheregionalandtheglobalscalehaveadded
a new sense of urgency to the issue of power grid
connectivity.Notwithstandingtheirdifferentclimate
andenergyagendas,allmemberStatesinNorth-East
Asiahavecommittedtotheclimateagendaintroduced
bytheParisAgreementonClimateChangein2015.
AsofOctober2020,China,JapanandtheRepublicof
Koreahaveraisedtheirclimateambitionsevenfurther
bysettingnet-zeroemissiontargets.Coal-firedpower
generationhasbeenthecentralsourceofelectricityfor
themostenergy-hungrycountriesoftheregion,China,
theRepublicofKoreaandJapan;thisremainsasthe
maincontributortotheregion’sheavyairpollutionand
amajorsourceofcarbonemissions.However,since
thepastdecadeamajortransformationoftheregional
energy system has begun to take place. Low-cost
renewablegenerationtechnologieshaveenteredthe
marketandarebeingincreasinglydeployedintheNorth-
EastAsiancountries.Domesticgridscannotadequately
respondtotheseprofoundchanges,whichnecessitates
thedevelopmentofregionalpowerinterconnections.
AftertheFukushimaDaiichinucleardisaster,skepticism
withregardtonuclearenergyasasourceoflow-carbon
electricityhasriseninmanycountries,includingsome
inNorth-EastAsia.ThecurrentGovernmentofthe
RepublicofKoreahasintroducedplanstophase-out
nuclearenergyover60years.InJapanitself,although
nuclearpowerplantshavebeengraduallyre-started
andnuclearpowergenerationreintroducedintothe
nationalpowermix,publicacceptanceremainsrelatively
low (JAERO,2017;ERIA,2018).Renewables (solar
andwind)havebecomeanincreasinglyattractiveand
cost-effective option. Under these circumstances,
strengtheningandenhancingthepowertransmission
system beyond national borders gains additional
importanceasthemeansofenablingfurtherdeployment
ofvariablerenewableenergysources.
Meanwhile, regional demand for electricity has
dramaticallyrisen inrecentdecades,mainlydueto
China’seconomicgrowth,andisprojectedtoriseeven
furtherdueto,amongotherreasons,thecontinuing
efforts to further electrify national economies, in
particular the transport sector. Tomeet this rising
demandinasustainableway,theshareofelectricity
from renewable sources will have to grow in all
North-East Asian countries. A regional power grid
interconnection is therefore not only necessary in
ordertoenableabiggershareofrenewableenergyto
beintroducedintothepowersystems.Itwouldprovide
criticalinfrastructurethatenablespowerflowsbetween
areaswithhighrenewableenergypotentialandareas
withhighelectricitydemand,whicharenotnecessarily
alwayslocatedwithinthesamenationalborders.
Finally,institutionalchangeshavebeentakingplaceon
theregionalscalethatcreatefavorableenvironment
forthecooperationonpowergridconnectivity.In2016,
SoftBankGroup,theStateGridCorporationofChina
(SGCC),KoreaElectricPowerCorporation(KEPCO,and
PJSCROSSETI,theoperatoroftheRussianFederation’s
energygrid,signedaMemorandumofUnderstanding
(MoU) on joint research and a plan to promote an
interconnectedelectricpowergridinNorth-EastAsia
Introduction
7
Towards sustainable energy for all through regional power grid interconnection
(SoftBankGroup,2016).Ayearlater,SGCCandKEPCO
proceeded with the partial implementation of this
connectivityvisionbydraftinganagreementonChina-
RepublicofKoreapowerinterconnectioninlate2017.
Theconstructionoftheinterconnectionisplannedfor
2022.Furthermore,in2019,Mongolia’slargeststate-
ownedminingcompany,ErdenesMongolLLC,signedan
MoUwithROSSETIonjointresearchanddevelopment
ofintegrationlinksofNorth-EasternAsia’spowergrids,
includingthenecessaryprimaryeffortstoenhanceand
improvereliabilityofMongolia’spowersystem(Rosseti,
03.09.2019).
Morebroadly,theRegionalComprehensiveEconomic
Partnership (RCEP) Agreement is a proposed free
tradeagreement(FTA)between15countries,threeof
whichareinNorth-EastAsia.Atpresent,thereisno
commonregulatoryframeworkfortradeamongthe
threecountries,andalthoughRCEPdoesnotcover
energyissues,itcouldneverthelesspotentiallyserve
asasteppingstonetowardsaregionalframeworkfor
energyexchangeinNorth-EastAsiaandbeyond.Since
2003,China,JapanandRepublicofKoreahavebeen
negotiating a separate free trade agreement. This
agreement,ifadopted,wouldtaketheRCEPAgreement
as its baseline, andwould thereforebe considered
a “RCEP Plus” free trade agreement (Ministry of
Commerce,4/17/2019).Assuch,itcouldalsoinclude
agreementsonenergytradeif,intheend,theyarenot
includedintheRCEPAgreement.
D. Structure of this report
Theremainingsectionsofthisreportarestructured
asfollows.ChapterIIoffersanoverviewoftheenergy
situation in North-East Asia on the regional level
aswell as on the level of national energy systems.
Inparticular,thechapterfocusesontherenewable
potential of the region, and the progress on the
sustainablegoalonenergy(SDG7)oftherespective
MemberStates.Thespecificsoftheirrespectivepower
systemsareincludedintheAppendix.ChapterIIIoffers
anoverviewoftheexistinginterconnections,aswell
astheregionalpowergridinterconnectionprojects
currentlyunderdiscussion.ChapterIVreviewspotential
benefitsresultingfromandchallengesthatneedtobe
addressedonthewaytowardsaregionalpowergrid
interconnection.ChapterVsuggestspolicyoptionsto
beconsideredbythenationalgovernmentsandother
relevantstakeholders,inordertodevelopandpursuea
commonvisiononregionalpowergridinterconnection
inaccordancewithSustainableDevelopmentGoals.
ChapterIVconcludes.
Regional Power Grid Connectivity for Sustainable Development in Northeast AsiaPolicies and Strategies
8
BackgroundEnergy systems in North-East Asia
North-EastAsiaisakeyglobalplayerwhenitcomestoenergy
andshiftsinsubregionalenergydemandandsupplyhave
asignificantimpactonglobalenergybalance(table1and
figure6).Thesubregionishometotheworld’stopthreenatural
gasimportingcountries,threeoutofthetopfivecrudeoilimporting
countries,oneoftheworld’smajorleadersintheproductionof
naturalgasandcrudeoil,andfouroutofthe10leadingcountriesin
termsofelectricityproduction.Inlinewithitsglobalenergyfootprint,
North-EastAsiaisalsotheregionresponsibleformorethanonethird
ofglobalcarbonemissions.
Duringthepastthreedecades,rapideconomicgrowthinNorth-East
Asiaquicklyincreasedregionaldemandforenergy.Totalprimary
energysupplyintheregion,whichamountedto2,330Mtoein1990,
grewalmosttwofoldto4,695Mtoein2018(IEA,2020).Today,
North-EastAsiaisadominantplayeringlobalenergymarkets,with
atotalprimaryenergysupply(TPES)intheregionamountingto
approximately32.9%oftheglobalenergysupply(14.279,5Mtoe).
29
Chinaaccountsfortwo-thirdsoftheregionalTPES
(68.4%), with the Russian Federation, Japan and
theRepublic ofKoreaoccupying second, third and
fourthplace(16.2%,9%and5.9%,respectively).The
DemocraticPeople’sRepublicofKoreaandMongolia
accountforlessthan1%oftheregionalTPESeach(0.3%
and0.1%respectively).Source-wise,coaldominatesthe
regionalenergymixwith49%ofTPES,whichisalmost
twotimesmorethantheglobalaverage(26.8%).Oilis
thesecond-biggestenergysource(22%),followedby
naturalgas(17%).
Table 1 _ Key energy statistics for North-East Asian economies, 2018
Total primary energy supply (TPES)
(Mtoe)TPES per capita (toe
per capita)Total final energy
consumption (Mtoe)Total energy
production (Mtoe)Electricity
consumption (TWh)Energy intensity (toe/
thousand) 2015 US$ (PPP))
Total CO2 emissions (Mt)
CO2 emissions from heat and power generation (Mt)
CO2 intensity of energy mix
(t CO2/toe)People’s Republic of China 3,210.7 2.3 2,066.7 2,570 6,880 0.13 9,570.8 4,890.3 3.0Democratic People’s Republic of Korea 14.3 0.6 5 14.3 13 0.13 15.3 2.9 1.1
Japan 426 3.4 283 52 1,012.8 0.08 1,080.7 500.6 2.5Mongolia 5.6 1.8 3.9 26.6 7.3 0.14 21.1 13.5 3.7Republic of Korea 278 5.5 182.2 61 572 0.13 605.8 328.3 2.2Russian Federation 760.4 5.3 514.5 1,477 999.4 0.21 1,587 778.2 2.1Total 4,695 - 3,055.3 4,200.9 9,484.5 - 12,880.7 6,513.8 -Global Share of NEA (%) 32.8 - 30.7 29.1 38.3 - 38.4 47 -World 14,279.5 1.9 9,,937.7 14,421 24,738.9 0.12 33,513.3 13,823.7 2.4
Source: Yearbook Enerdata, IEA 2020a, IEA 2020b
Figure 6 _ Total primary energy supply by source, 2018 (Mtoe)
ktoe
3,500
3,000
2,500
2,000 20
ktoe
1,500 15
1,000 10
500 5
0 0People’s Republic of China
Democratic People’s
Republic of Korea
Japan Mongolia Republic of Korea
Russian Federation
Democratic People’s
Republic of Korea
Mongolia
Coal Oil Gas Biofuels and waste Hydro Wind, solar NuclearSource: IEA 2020a.
Regional Power Grid Connectivity for Sustainable Development in Northeast AsiaPolicies and Strategies
10
Hydropowerandfurthermodern(non-combustible)
renewable energy sources, such aswind and solar
energy, account for3%and2%of the total energy
mix,respectively.Accordingtomostenergyoutlook
analyses(e.g.,BP,IEA,IEEJ,Shell,Skolkovo,WorldBank),
atleastuntil2040coalwillremainoneofthemajor
sourcesofprimaryenergyinthesubregion,despite
legitimateconcernsaboutairpollutionandgreenhouse
gas emissions. Greater efforts are needed by the
Governmentsofthissubregiontoembracelesspolluting
andmoreefficientpowergenerationtechnologiesifthis
outlookistobeimproved.
Table 1 _ Key energy statistics for North-East Asian economies, 2018
Total primary energy supply (TPES)
(Mtoe)TPES per capita (toe
per capita)Total final energy
consumption (Mtoe)Total energy
production (Mtoe)Electricity
consumption (TWh)Energy intensity (toe/
thousand) 2015 US$ (PPP))
Total CO2 emissions (Mt)
CO2 emissions from heat and power generation (Mt)
CO2 intensity of energy mix
(t CO2/toe)People’s Republic of China 3,210.7 2.3 2,066.7 2,570 6,880 0.13 9,570.8 4,890.3 3.0Democratic People’s Republic of Korea 14.3 0.6 5 14.3 13 0.13 15.3 2.9 1.1
Japan 426 3.4 283 52 1,012.8 0.08 1,080.7 500.6 2.5Mongolia 5.6 1.8 3.9 26.6 7.3 0.14 21.1 13.5 3.7Republic of Korea 278 5.5 182.2 61 572 0.13 605.8 328.3 2.2Russian Federation 760.4 5.3 514.5 1,477 999.4 0.21 1,587 778.2 2.1Total 4,695 - 3,055.3 4,200.9 9,484.5 - 12,880.7 6,513.8 -Global Share of NEA (%) 32.8 - 30.7 29.1 38.3 - 38.4 47 -World 14,279.5 1.9 9,,937.7 14,421 24,738.9 0.12 33,513.3 13,823.7 2.4
Source: Yearbook Enerdata, IEA 2020a, IEA 2020b
Figure 7 _ TPES, Regional Energy Mix (2018)
Coal49%
Nuclear4%
Oil22%
Solar, wind, etc2%
Gas17%
Biofuels and waste3%
Hydro3%
Source: IEA 2020a.
Background
11
Energy systems in North-East Asia
A. Total final energy consumption
Coalisalsotheprimarysourcefortotalfinalenergy
consumption(TFC)inthesubregion,accountingfor
22.8%,whichismorethantwicetheglobalaverage
(10.5%).Onthepositiveside,theshareofelectricity
inthetotalfinalenergyconsumptioninthesubregion
(23.9%)isconsiderablyhigherthantheglobalaverage
(18.9%),whiletheuseofoilproductsismorethanone-
fourthlower(NEA,29.5%andglobal,40.9%).Inabsolute
terms,theshareofcoalinthesubregionalenergymix
hasbeendecreasingforthepastseveralyears(e.g.,
28.3%in2015asopposedto22.8%in2018)(figure8),
mainly due to China’s decarbonization efforts and
countermeasuresagainstairpollution.AsChinaexpands
itscoal-to-gasandcoal-to-electricitymeasurestoenable
cleanerheatingoptionsforChinesehouseholds,the
shareofnaturalgasinitsenergymixisexpectedto
growby166%until2040,accountingfor14%ofthe
totalenergymix(BP,2019a).
Energy production and energy self-sufficiency
Naturalenergyreservesaredistributedunevenlyamong
North-EastAsiancountries,causingnationalenergy
productionvolumestodiffersignificantly.Inaddition,
theself-sufficiencylevelsinthesubregionvarygreatly,
andthecountriescouldberoughlydividedintotwo
groups–energyexporting(RussianFederationand
Mongolia) and energy importing countries (China,
JapanandtheRepublicofKorea).Asdemonstrated
infigure9,theDemocraticPeople’sRepublicofKorea
producesnearly100%ofitsdomesticenergydemand
andisformallyself-sufficient.However,giventhelow
levelsofenergyaccessinthecountry,itissafetoassume
that,shouldlargersharesofthepopulationgetaccessto
energy,thecurrentdomesticlevelsofenergyproduction
wouldnotsufficetocoverthedomesticenergydemand.
Amongtheenergy-exportingcountries,theRussian
Federationisamajorglobalplayer–in2018,theRussian
Federationremainedthesecondlargestgas,andthe
thirdlargestoilproducer,accountingfor17%and12%
oftheglobaloutput,respectively(BP,2019b).Export
ofenergyresourcesdominatestheRussianFederation
economyandaccountedfor54.5%oftotalexportin
2018(Ru-Stat,2019).Mongoliaexportsabout73%of
itsannualcoalproductionandisdependentonrevenues
fromcoalexportthatconstituteabout33%ofcountry’s
totalexports(OEC,2020).
Asof2018,JapanandtheRepublicofKoreahadto
import88%and84%oftheirprimaryenergysupply
andaretherebyamongthemostimport-dependent
countriesintheworld.Japan’shistoricallylowself-
sufficiencyratioabruptlydecreasedevenfurtherafter
Figure 8 _ Total final energy consumption in NEA by source (2018)
Coal22.83%
Crude oil0.02%
Oil products29.58%
Solar, wind, etc1.14%
Natural gas12.81%
Biofuels and waste3.11%
Electricity23.39%
Heat7.13%
Source: IEA 2020a.
Regional Power Grid Connectivity for Sustainable Development in Northeast AsiaPolicies and Strategies
12
theFukushimanucleardisaster(from19.9%in2010
to 6% in 2014) and the following phase-out of the
country’snuclearpowerplants.Althoughsomeofthe
powerplantswereputbackonline,theiroutputisnot
sufficienttocoveranysignificantshareofthedomestic
energydemand(METI,2016).Withthemajorshareof
theircrudeoilimportscomingfromtheMiddleEastern
countries,mostnotablySaudiArabia,theUnitedArab
Emirates,KuwaitandtheIslamicRepublicofIran,both
JapanandtheRepublicofKoreaarehighlysensitiveto
thepoliticalsituationintheregion(EIA,2018).
Figure 9 _ Self-sufficiency (total energy production/TPES, %), 2018
Unkn
own
units
People’s Republic of China
Democratic People’s Republic of Korea
Japan Mongolia Republic of Korea Russian Federation
Source: IEA 2020b (data available up to 2018).
19700
100
200
300
400
500
1985 20101975 20001990 20151980 20051995 2020
Figure 10 _ Electricity consumption in North-East Asia, 1990-2018, TWh
TWh
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0 1990 1995 2000 2005 2010 2015 2018
People’s Republic of China
Democratic People’s Republic of Korea
Japan Mongolia Republic of Korea Russian Federation
Source: IEA 2020a.
Background
13
Energy systems in North-East Asia
Figure 11 _A Total CO2 emissions by country, 1990-2018 (Mt of CO2)
Mt o
f CO 2
10,000
8,000
6,000
4,000
2,000
0 1990 1995 2000 2005 2010 2015 2018
People’s Republic of China
Democratic People’s Republic of Korea
Japan Mongolia Republic of Korea Russian Federation
Source: IEA 2020a.
Figure 11 _B CO2 emissions growth by country, compared to the 1990 level, 1990-2018 (%)
Mt o
f CO 2
400
350
300
250
200
150
100
50
0
-50
-100
-150 1990 1995 2000 2005 2010 2015 2018
People’s Republic of China
Democratic People’s Republic of Korea
Japan Mongolia Republic of Korea Russian Federation
Source: IEA World Energy Balances 2019.
Regional Power Grid Connectivity for Sustainable Development in Northeast AsiaPolicies and Strategies
14
Chinaimportsabout20%ofitsprimaryenergysupply
and covers the rest through domestic production.
Chinahadbeenself-sufficientuntiltheearly2000s,but
shortlyafterwardsdomesticenergyproductioncouldno
longerkeepupwithcountry’srapideconomicgrowth.
Consequently,Chinabeganimportingcrudeoil,coal
andgas,inordertosupplytheenergy-thirstyeconomy.
Naturalgasimportshavegainedparticularimportance
inrecentyears,asChinaattemptstodecarbonizeits
economyandreplacesomeofitscoalconsumptionwith
thislesscarbon-intensivefossilalternative.Asoftoday,
Chinaistheworld’slargestnaturalgasandoilimporting
country.
North-EastAsiaishometofouroutofthe10largest
electricityconsumingcountries(China–27.8%,Japan
–4%,RussianFederation–4%,theRepublicofKorea–
2.3%),(figure9).Altogether,North-EastAsiancountries
accountformorethanonethirdofglobalelectricity
consumption(38.3%).Thetotalvolumeofelectricity
consumption in the regionhas grown considerably
since the 1990, which is primarily due to China’s
rapideconomicdevelopmentandtheriseofnational
electricityconsumptionbymorethan10timesfrom
1990(603TWh)to2018(6880TWh)(figure10).
CO2 emissions
Energyconsumption in the regionhasdramatically
increasedoverthelasttwodecades,primarilydueto
China’seconomicdevelopmentandtheconsequentrise
inenergydemand.Theincreaseinenergyconsumption,
dominated by coal and other fossil fuels, has been
accompaniedbysoaringcarbonemissions,particularly
inChina(figure11a).
TheshareofNorth-EastAsia intheworld’scarbon
energyemissionsgrewfrom26.7%in2000to38.4%
in2018,whereasChina isresponsiblefor74.3%of
thesubregionalandmorethan25%ofglobalcarbon
emissions(figure11b)(IEA2020,author’scalculations).
Emissionlevelsincreasedbymorethan350%inChina,
byca.160%intheRepublicofKoreaandby48%in
Mongoliasince1990,drivenbyeconomicgrowthand
increasedenergyconsumption(figure12).Emission
levelsinJapanhavebeenholdingattheapproximately
samelevelforthelast30yearsandhavebeenabout
2.5%overthe1990levelin2018,whiletheemission
levelsintheRussianFederationandtheDPRKhave
dropped significantly since 1990 (26.6% and 87%,
Figure 12 _ CO2 intensity of the energy mix by country, 1990-2018 (t CO2/toe)
t CO 2
/toe
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0 1990 1995 2000 2005 2010 2015 2018
People’s Republic of China
Democratic People’s Republic of Korea
Japan Mongolia Republic of Korea
Russian Federation
World
Source: IEA Data Services 2020 (available online).
Background
15
Energy systems in North-East Asia
respectively),mainly as the result of the economic
downturn.
The energy sector is by far the biggest source of
CO2emissionsinthesubregion,withemissionsfrom
electricityandheatgenerationaccountingfor47%of
thetotalCO2emissions(seetable1forcountrydetails).
AsidefromtheDemocraticPeople’sRepublicofKorea,
theRepublicofKoreaandtheRussianFederation,the
CO2intensityofthenationalenergymixesinNorth-East
Asiaiswellabovetheworldaverage.5Bothindicators
(CO2emissionsoftheenergysectorandCO
2intensity
oftheenergymix)pointtothedominanceandeven
furthergrowthoftheroleofcoalastheprimaryfuelin
thesubregionalenergymix,andsignifythedireneedto
decarbonizetheenergysector.
ReducingCO2emissionsisamongthecoregoalsof
the sustainabledevelopmentagenda,anda central
part of the Paris Agreement on Climate Change.
All countries in the subregion have either ratified
(China,DPRK,MongoliaandtheRepublicofKorea)
oraccepted(JapanandtheRussianFederation)the
ParisAgreementandpresentedtheirownNationally
DeterminedContributions(NDCs)until2030.By2030,
ChinapledgedtopeakCO2emissions,whilereducingthe
carbonintensityofitseconomyby60%to65%below
the2005level.JapanhascommittedtoreducingCO2
emissionsby26%below2013levels(UNFCCC,2015a),
andtheRussianFederationby20-30%belowthe1990
levels(ClimateActionTracker,2020).TheRepublicof
Korea,MongoliaandDPRKpledgedtoreduceCO2
emissions,comparedtotheprojectedemissionslevel
under a business-as-usual (BAU) scenario, by 30%
(UNFCCC,2015b),14%(UNFCCC,2015c),and8%,
respectively.Whilethe8%reductionisanunconditional
contributionpledgedbytheDPRK,thereisanother,
conditionalcontribution–upto34%belowBAU,given
theinternationalcooperationontheimplementation
oftheParisAgreement,includingfinancialsupport,
is inplace.China,Japan,andtheRepublicofKorea
havefurtherraisedtheirclimateambitionsinautumn
2020,bysettingnet-zeroemissiongoals.Chinaand
the Republic of Korea pledged to achieve carbon-
neutrality,i.e.net-zeroCO2emissions,by2060and
2050,respectively(Hook,2020andGerretsen,2020).
5 TheCO2intensityofJapan’senergymixhassignificantlyrisen
aftertheFukushimanucleardisasterandtheconsequentreductionoftheshareof(low-carbon)nuclearpowerandtheincreaseofcoalandgasinthetotalprimaryenergyconsumption.
Japanpledgedtobecomeclimate-neutral,i.e.toachieve
net-zero greenhouse emissions, by 2050 (Kankyo
Business,2020).Withtheserecentnet-zeropledgesset
byitslargesteconomies,North-EastAsiahasbecomea
subregionwithoneofthemostambitiousclimatetargets
worldwide.
B. Renewable potential of the region
North-East Asia is a region richly endowed with
renewableenergyresourcesthatareusedforelectricity
generation,particularlyhydropower,solar,windand
geothermal (see the maps in Appendix II). These
resourcesaredistributedunevenlybetweenNorth-East
Asiancountries,withphotovoltaicpoweroutputbeing
thehighestinthecentralandsouthernpartsofMongolia
aswellasinTibetandthenorthernprovincesofChina.
AreasinMongolia’sGobiDesertandthenorthernand
north-easternpartsofChinahavethelargesttechnical
potential,giventheirrelativelyflatlandscapeandlow
levelofurbanization.Theseareasarealsoveryrichin
windresource.Whiletheoreticalonshorewindpotential
in the Russian Far East (Kamchatka,Magadan and
Primorye)andJapan’snorthernislandHokkaidoisvery
high,thetechnicalpotentialislowergiventhesteepness
androughnessofterrain.
Offshorewindpotentialisgenerallyveryhighinthe
coastal areas of the region, while areas along the
shoresoftheRussianFarEast(Kamchatka,Sakhalin
andPrimorye),andJapan’sHokkaidoislandareamong
areaswiththeworld’shighestpotentialforoffshore
wind installations. There,meanwind speed ranges
between8.5and9.75m/sandtheaveragewinddensity
isbetween700and1300W/m.2AsidefromMongolia,
North-EastAsiaisveryrichinhydropowerresources.
Chinahastheworld’shighesthydropowerpotentialof
upto2,474TWhperyear,whiletheRussianFederation
possesses the world’s second-largest hydropower
potentialofupto1670TWhperyear(Belyaevetal.,
2015).
As the region is locatedalong the collision linesof
tectonic plates (the so-called Pacific Ring of Fire;
figure13),thephysicalpotentialforgeothermalpower
generationisconsiderable,especiallyintheouterareas
oftheKamchatkapeninsula(IEGRAS(2015)andin
Japan(IRENA,2017b).DespiteJapan’sconsiderable
geothermalpotential,furtherdevelopmentofthese
resources is difficult, given thatmost undeveloped
Regional Power Grid Connectivity for Sustainable Development in Northeast AsiaPolicies and Strategies
16
geothermalresourcesarelocatedinnationalparksand
protectedareas.
Despitethevastrenewableenergyresourcesavailable,
onlyafractionhasbeenexploiteduptonow.While
Chinaactivelydevelopssolargenerationcapacitiesinits
northernprovinces,Mongolia’ssolarandwindpotential
remainspracticallyuntoucheddueto lowdomestic
powerdemand,theremotelocationoftheareaswith
highsolarandwindpotentialfromMongolia’sload
centres,andthe inabilityofMongolianeconomyto
fund the costly required infrastructure.While the
gross hydropower potentials of the rivers in the
EasternSiberiaandFarEastregionsaccountfor41.4%
and42.1%,respectively,ofthenationalhydropower
potential,one-fifthofthepotentialinEasternSiberia
andonly3%oftheFarEasthasbeentappedsofar.
SomeareasintheFarEastarealreadyatovercapacity
compared to local demand, in particular because
domesticelectricitydemandintheareagrowsvery
slowly.Althoughdomesticdemandisexpectedtogrow
duetoincreasedactivityoftherailway,oiltransportand
coalminingsectors,planstoinstallnewcapacitiesare
currentlycontingentonexportingtheexcesselectricity
toChina(Interfax,12/30/2014).
Renewable energy sources and power generation in North-East Asia
Inthepastthreedecades,renewableenergygeneration
inNorth-EastAsiahasrisenfromaround413.5TWhto
asoaring2163.2TWh(2018),anincreaseof523%.The
lionshareofthiscontributionbelongstoChina,whose
renewableenergygenerationhasgrowntenfoldand,
with1775.2TWh,constitutedabout82%ofthetotal
renewableelectricitygenerationintheregionasof2018
(figures14aand14b).
JapanandtheRepublicofKoreahavealsorecordeda
considerableincreaseintheirshareofrenewablesin
theelectricitygenerationmix(twofoldandthreefold,
respectively).Mongoliaintroduceditsfirstrenewable
(hydropower) generation facilities in 2000 and, a
decadelater,introduceditsfirstwindpowerplant;this
Figure 13 _ The Pacific “Ring of Fire”
Source: Wikimedia CommonsDisclaimer: The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.
Background
17
Energy systems in North-East Asia
increasedthecountry’srenewableelectricitygeneration
almostahundredfold,from0.004TWhin1990to0.458
TWhin2018.Althoughthisisaveryimpressivegrowth,
inabsolutetermsthisnumberisstillrathermodestin
theregionalperspective.
6 SolarthermalgenerationislimitedtoChina,whereitmakesup0.01%oftheRES-Epowermix.
IntheRussianFederation,constructionofseverallarge-
scalehydropowerplantsinEastSiberiaandtheFarEast
regionsand,toamuchlesserextent,theintroduction
offirstsolarandwindcapacitiescontributedtoa13%
increaseinrenewableenergygeneration,from166TWh
in1990to194,4TWhin2018.
Figure 14 _A Renewable electricity generation by country, 2018 (TWh)
TWh
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0 People’s Republic of China
Democratic People’s Republic of Korea
Japan Mongolia Republic of Korea Russian Federation
Source: IEA 2020a.
1775.2
12.8
161
0.4 19.4
194.4
Figure 14 _B Renewable electricity generation in NEA, 1990-2018 (TWh)
TWh
2,500
2,000
1,500
1,000
500
0 1990 1995 2000 2005 2010 2015 2018
People’s Republic of China NEASource: IEA 2020a.
Regional Power Grid Connectivity for Sustainable Development in Northeast AsiaPolicies and Strategies
18
Hydropowerdominatestheregionalrenewableenergy
mixduetothematurityofhydropowertechnology.
Particularly widespread are reservoir hydropower
plants,duetotherelativestabilityandcontrollabilityof
theirgenerationoutput;thismakesthemadispatchable
powersource,similartothefossilpowerplants(IRENA,
2015).Whilethefirstlargehydropowerplantsinthe
regionwereconstructedasearlyasthefirsthalfofthe
twentiethcentury,variablerenewableenergysources
begantobeexploitedonalargescaleonlyacoupleof
decadesago.Asof2019,solarPVandonshorewind
powerwere the fastest growing renewableenergy
sources, both globally and in North-East Asia, and
areexpectedtoleadthefuturegrowthinrenewable
electricitygeneration.
Solar and wind: Growing potential due to technology advancements and lowering costs
Due to rapid technological progress, coupled with
economy of scale and the introduction of policies
supportingdeploymentofrenewableenergy,renewable
powergenerationtechnologieshaveenteredavirtuous
cycle of falling costs, increasing deployment and
acceleratedtechnologicalprogress.
Globally,solarPVmodulepriceshavefallenbyaround
90%sincetheendof2009,whilewindturbineprices
have fallen by 55-60% (IRENA, 2020). The global
levelizedcost(LCOE)7ofutility-scalerenewablepower
generationtechnologieshasdroppedsignificantlyinthe
lastdecadeandisincurrentlywellwithinfossilfuelcost
rangeformostmajortechnologies.Asdemonstrated
intheFigureS1,thefuelcost(lightgreystripe)ranges
betweenca.0.05and0.18USD/kwh.Incomparison,
theaverageLCOEofutility-scalePVplantsisestimated
tohavefallenby82%between2010and2019,from
around USD0.378/kWh to USD0.068/kWh, while
auction and tender results suggest theywill fall to
betweenUSD0.08/kWhand0.02/kWhuntil2030.
RecentrecordlowauctionoutcomesforsolarPVinAbu
Dhabi,Chile,Dubai,Mexico,PeruandSaudiArabiahave
shownthatanLCOEof$0.03/kWhisalreadypossiblein
awidevarietyofnationalcontexts(ibid.,26).By2050,
solarPVisexpectedtobeamongthecheapestsources
ofpoweravailable,particularlyinareaswithexcellent
solarirradiation,with2050costsintherangeofUSD
0.014–0.05/kWh.
Togetherwithsignificantcostreductions,improvements
intheperformanceofsolarsystemswereachievedand
lossesreduced.Forexample,theaverageefficiencyof
7 Thelevelizedcostofenergyisthepresentvalueofthetotalcostofconstructionandoperationofapowerplantoveranassumedlifetime.Itisoneofthemostimportantindicatorsofeconomicviability,asitallowsthecomparisonofdifferenttechnologies(e.g.,wind,solarandnaturalgas)ofunequallifespans,projectsize,differentcapitalcost,risk,returnandcapacities.
Figure 14 _C Renewable power generation mix by country and source, 2018 (%)6
People’s Republic of China
Democratic People’s Republic of Korea
Mongolia
Japan
Republic of Korea
Russian Federation
0 10 20 30 40 50 60 70 80 90 100Percent
Geothermal Hydro Solar photovoltaic Tide, wave, ocean Wind Solar thermalSource: IEA 2020a.
Background
19
Energy systems in North-East Asia
mono-andpolycrystallinesiliconPVmodulesbetween
2006and2018grewbyca.22%and28%,respectively
(FraunhoferInstitute,2020).Totalinstalledcostsfor
large-scalesolargenerationfacilitieshavedropped
significantlyinallmajorcountries,especiallyinChina,
77%andJapan,74%pan.Allthesedevelopmentshave
createdconsiderableimprovementintheeconomic
competitivenessofsolarPVandwindpower(IRENA,
2019a).
Evolution of storage and transmission technologies
Progress has been made not only in renewable
generation technologies, but also in storage and
transmissionsystemsthatareessentialtogivingthe
powersystemthenecessaryflexibility(batteriesfor
local/short-termissues,andexpandedgridonalarge
scale) to accommodate large amounts of variable
renewable energy. The costs of battery storage
technologiescontinuedtodeclinein2018andbysome
estimates,costsofutility-scalestoragetechnologies
decreased 40% during that year. For lithium-ion
batteries,whichremaintheleadingbatterystorage
technology,thecostperunitofstorage(US$/kWh)
dropped80%between2010and2017.
Transmission technologies are also evolving, with
the emergence of economically feasible ultra-high
voltage (UHV) transmission lines and digitalization
ofthegrid,includingsmartmetering,smartsensors,
automationandotherdigitalnetworktechnologies
(WorldEconomicForum,2017). High-andultra-high-
voltagetransmissionlinesenablebulkpowertransfer
overlongdistancesandarethereforeanindispensable
8 TheRussianFederation’srenewabletargetexcludeshydropower,whichcurrentlymakesupapproximately17percentofgeneration(BPStatisticalReview,2019,p.56).
Figure 15 _ Global LCOE from newly commissioned utility-scale renewable power generation technologies, 2010-2019
Biomass Geothermal Hydro Solar photovoltaic Concentrating solar power
Offshore wind Onshore wind
2019
USD
/kW
h
Capacity (MW) 1 100 200 300Source: IRENA, 2020, Renewable power generation database, costs in 2019, figure 1.2.Note: This data is for the year of commissioning. The diameter of the circle represents the size of the project, with its centre the value for the cost of each project on the Y axis. The thick lines are the global weighted-average LCOE value for plants commissioned in each year. Real weighted average cost of capital (WACC) is 7.5% for OECD countries and China and 10% for the rest of the world. The single band represents the fossil fuel-fired power generation cost range, while the bands for each tecnology and year represents the 5th and 95th percentile bands for renewable projects.
Regional Power Grid Connectivity for Sustainable Development in Northeast AsiaPolicies and Strategies
20
component of a regional power system. Since the
firsthigh-voltagedirectcurrenttransmissionlinewas
constructedinSwedenin1954(100kV),thefeasible
voltageoftheDCpowerlineshasincreaseddramatically,
withpowertransmissionlinesofmorethan1000kV
beingconstructedinseveralcountries,mostnotably
China(CEPRI,2018).Progresshasalsobeenmadein
implementingUHVAC technologies, which enable
constructionofinterconnectorswithhighercapacity
9 TheDemocraticPeople’sRepublicofKorea’stargetisonlyforwindandsolarPV.Whiledataisavailableregardingpowergenerationfromotherrenewablesources(inthiscase,hydropower),therearecurrentlynodataavailableoninstalledwindandsolarpowercapacities.
andlowertransmissionlosses,whilereducingthetotal
constructioncost.
Renewable energy policy and targets in North-East Asia
Theinternationalcommunityaswellastheoverwhelming
majority of nation states acknowledge the key role
renewableenergywillplayincurtailingCO2emissions
andcreatingasustainable,low-carbonenergysystem.In
North-EastAsia,allcountrieshaveintroducedtheirown
Table 2 _ Renewable energy targets of NEA countries for 2030 and progress to date.
ChinaDemocratic
People’s Republic of
KoreaJapan Mongolia Republic of Korea
Russian Federation
2 0 3 0
Target
20% of non-fossil fuels in primary energy consumption by 2030
100 MW of grid-connected solar PV, 500 MW of offshore and 500MW of onshore wind power plants
22-24% of electricity generation from RES-E by 2030
20% of electricity generation from RES-E by 2020 and 30% by 2030
20% RES-E in electricity generation by 2030
At least 2.5% RES-E8 in total electricity generation by in 2020 and 4.5% - by 2024
Progress
(year in
brackets)
14.7% (2018) No data available9
18% (2018, BP) 6.5% (2017, IEA) 3.2% (2018, IEA) 1.3% (2018, BP)
Source: METI, 2015; BP, 2019b; IRENA 2017c; IEA, 2018.
Figure 16 _ Average crystalline-silicon PV module efficiency, 2006-2018
Per c
ent
20
18
16
14
19
17
15
1312
2006 2010 20142008 2012 20162007 2011 20152009 2013 2017 2018
Multi Mono Blended averageSource: Fraunhofer Institute, 2020.
Background
21
Energy systems in North-East Asia
targetsforrenewableenergyandmechanismstosupport
furtherdeploymentofrenewableenergysources.
Althoughthepoliciesandtheirimplementationvary
considerably,eachoftheNorth-East-Asiancountries
have introduced support schemes to foster the
developmentofrenewableenergy,withfeed-intariff
beinginforceinChina,Japan,MongoliaandtheRussian
Federation,RenewablePortfolioStandardinChinaand
theRepublicofKorea,andvarioustaxincentivesinall
countriesexceptMongoliaandtheDemocraticPeople’s
RepublicofKorea.
10 REN21,2019,Renewables2019:GlobalStatusReport;DPRK–News,translatedbyNKEconWatch.
11 AccordingtothereportofKoreanCentralNewsAgency(KCNA)ofSeptember2,2013,country’sfirstRenewableEnergyActwasadoptedatthePresidiumoftheSupremePeople’sAssembly,consistingofthefollowingsixchapters:(1)definitionandmissionofrenewableenergy:(2)researchanddevelopmentofrenewableenergyresources;*(3)basicprinciplesintheusage;(4)planningandencouragingthedevelopmentofrenewableenergy;(5)enforcementofthematerialsandtechnicalsectorsofrenewableenergy;and(6)legalrequirementstoguidetherenewableenergysectorprojects.
12 Revisedin2018.13 Revisedin2019.14 AlthoughtheRPSAct(電気事業者による新エネルギー等の
利用に関する特別措置法orRPS法)officiallyabolishedtheintroductionoftheFeed-inTariffsystemin2012,theRPScertificationsystemremainsineffectuntil2022andappliestocompaniescertifiedforRPSbeforetheintroductionofFIT.ThisdecisionhasbeentakeninordertocountertheperceivedriskthattheRPS-certifiedcompanieswouldnotbeabletorecovertheirinvestmentsintherenewablepowergenerationfacilities.AfterthestartoftheFeed-inTariff,mostoftheRPS-certifiedfacilitieshavebeentransferredtoFIT(METI,2016).
Table 3 _ Renewable energy policies in place in North-East Asia
China10Democratic
People’s Republic of
KoreaJapan Republic of Korea Mongolia
Russian Federation
Current RES-E Legislation in force since 2016 201311 2012 2009 2019 2009FIT/ premium payment 12 13
El. utility quota obligation/ Renewable Portfolio Standard (RPS)
14
Net meteringTradable Renewable Energy Certificate (REC)Tax incentivesInvestment or production tax creditsEnergy production paymentPublic investment loans, grants, subsidies etc.
Source: REN21, 2019, Renewables 2019: Global Status Report.
Itisnotpossibletoelaborateonthequalityandsuccess
rateofrenewables-relatedpoliciesinNorth-EastAsia
withinthescopeofthisreport.Itisneverthelessevident
thatalthoughcountries’effortscontributedsignificantly
to the deployment of renewable energy, problems
remain.
Astheshareofvariablerenewablesinapowersystem
increases,theneedforthepowersystemflexibility
increasesaswell.Thegenerationoutputofwind,solar
PVand,toalesserextent,hydropowervariesdepending
onthetimeoftheday,weatherpatternsandtheseason.
Withoutsufficientflexibilitytobalancethevariationsin
renewableenergyproduction,duringtimesofsurplus
productionitbecomesnecessarytocurtailgeneration
inordertoavoidgridcongestion.Toavoidwastingthis
surpluselectricity,countrieshavemadeaneffortto
developstoragesolutionsandhaveexpandedthegrid.In
China,forexample,manyofthecountry’swindprojects
areinremoteareasinthenorth-westernprovincesthat
haveweakgridlinksandareoftenunabletodispatch
thewholeoutput.ConstructionoftenACand27DC
ultra-highvoltage(UHV)transmissionlinesby2020
havebeenplannedtosolvethisproblem.Althoughdue
totheexpansionofthegrid,theaveragecurtailment
rateofwindpowerinChinafellto7%in2018,itisstill
around25%inthemajorwindgeneratingprovincesof
XinjiangandGansuinthenorth-westofthecountry.
Inlate2018,Japan’sfirstcurtailmentofsolarPVand
windgenerationoccurredontheislandofKyushu(Wind
Regional Power Grid Connectivity for Sustainable Development in Northeast AsiaPolicies and Strategies
22
Energy and Electric Vehicle Magazine,21June2019)duetoperiodicalhighsharesofvariablerenewableoutput
combinedwithinflexiblenucleargeneration,whichalso
increaseditsshareintheelectricitymix.
Insufficientinterconnectionsnotonlycausecurtailment
lossesinthealreadyinstalledrenewablegeneration
capacities(mainlyinChina,butalsoinotherpartsofthe
region–e.g.,withinthepowersystemofKyushu,Japan),
butalsopreventnewplantsfrombeingconstructed.The
substantialhydropowerpotentialoftheRussianFarEast
cannotbefullydevelopedwithoutnewtransmission
linesconnectingthepotentialhydropowerplantsites
totheloadcentres(theclosestonesbeinginChina).
Similarly,Mongolia’senormoussolarandwindpotential
(2.6TW),(IRENA,2016)willremainlargelyunexploited
untilinfrastructureisinplacetosupplythepowertothe
neighbouringcountriesthathaveademandforsuchvast
amountsofelectricity.
Whileweakgridsandinsufficientdemandarelimiting
thepotentialofrenewableenergyresources inthe
RussianFederationandMongolia,furthe