1. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 1 “RFE-NEC-DPRK-RK” POWER GRID INTERCONNECTION Sergei Podkovalnikov Energy Systems Institute, Irkutsk, Russia n Introduction n Overview of NEC power system n Potential route n Preliminary costs-benefit analysis n Proposal for new scheme of the ISET n Inferences

2. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 2 Power Grid Map of Northeast China

3. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 3 Features of NEC Power System. I n Current generating capacity - 38 GW, electricity consumption - 154 TWh/year, frequency - 50 Hz n Maximum electric load comes in winter n Electricity consumption is unevenly distributed on the territory, with large share falling on South n Large share of generating capacity is located in South n There is currently excess of power generating capacity

4. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 4 Features of NEC Power System. II n Thermal power plants dominate in generation capacity mix n There is lack of maneuverable generating capacity for meeting cycling electric load of consumers n Backbone power transmission grid of highest voltage is developed n NEC power grid has local scale electric connection with RFE EPS

5. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 5 Benefits for NEC from joining ‘RFE- DPRK-RK” power interconnection n Saving capacity at the cost of seasonal diversity power exchange with EPS of RK n Receiving maneuverable hydropower from DPRK n Getting profit from electricity trading with RK in seasons of low power loads of domestic consumers n Relieving environmental burden in season of highest winter loads at the cost of receiving power from RK n Increase of reliability and sharing reserve margin

6. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 6 Map of railroads of the South of RFE, NEC, DPRK and RK

7. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 7 The Scheme of «RFE-NEC-RK» Electric Tie

8. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 8 The Method of Study Net Economic Benefit = Cost SavedCapacity - Cost ISET&Nuclear PP Cost comprises annualized investment and yearly maintenance and fuel costs

9. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 9 Capacity and Investment Saving

10. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 10 Cost for “RFE-NEC-RK” ISET

11. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 11 Net Economic Benefit of “RFE-NEC- RK” ISET&Nuclear PP, $ Mln./year Discount rate

12. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 12 The Scheme of «RFE-NEC-DPRK-RK» Electric Tie

13. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 13 The Method of Study Net Profit = Gross Benefits - Gross Costs Gross Benefits - capacity saving, reduction of electricity tariffs and environmental benefit owing to power interconnection accumulated for 15 years Gross Costs - cost for construction and maintenance of transmission and converters accumulated for 15 years

14. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 14 Economic Estimates of “RFE-NEC- DPRK-RK” ISET, $ Bln.

15. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 15 “RFE-DPRK-RK” ISET with “DPRK- NEC” Extension

16. 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China 16 Inferences n NEC joining to “RFE-DPRK-RK” power interconnection seems to be mutually beneficial for all participating countries. n There is quite developed transport and power grid infrastructure along the larger part of potential route of “RFE-NEC-DPRK-RK” ISET n As preliminary studies shows, the examined variants of the ISET ensure high economic benefits; such inference was drawn independently by both RK and Russian researches n It seems reasonable examining “RFE-DPRK-RK” ISET, with section “DPRK-NEC” being extended