Introduction Overview of NEC power system Potential route Preliminary costs-benefit analysis

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

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

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

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

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

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

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

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

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

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

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

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

16. Inferences • NEC joining to “RFE-DPRK-RK” power interconnection seems to be mutually beneficial for all participating countries. • There is quite developed transport and power grid infrastructure along the larger part of potential route of “RFE-NEC-DPRK-RK” ISET • 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 • It seems reasonable examining “RFE-DPRK-RK” ISET, with section “DPRK-NEC” being extended 2nd Workshop on PGI in NEA, May 6-8 2002, Shenzhen, China