Imported Electricity from North Korea Surges 62%
Electricity Imports Frozen Due to Security Issues Expected to Increase
[Asia Economy Reporter Hyunwoo Lee] China, which has been experiencing worsening power shortages due to the recent surge in coal and natural gas prices, has significantly increased its electricity imports from neighboring countries such as North Korea, Russia, and Myanmar. There is also speculation that the amount of electricity imports, which had been restricted due to security concerns, may increase substantially.
According to the Hong Kong South China Morning Post (SCMP) on the 25th, the China Customs Administration announced that last month, the amount of electricity imported from North Korea surged by 62% year-on-year to 35,974 MWh. SCMP reported that the total electricity imported from North Korea during the first to third quarters of this year was 291 GWh, a 37% increase compared to the same period last year, amounting to approximately 11.9 million USD (about 14 billion KRW).
The electricity imported from North Korea enters China through the Dandong area in Liaoning Province, the largest trade hub between North Korea and China. Currently, most of Northeast China, including Liaoning Province, Heilongjiang Province, and Jilin Province, has been suffering from severe power shortages since September. According to SCMP, although North Korea is prohibited from exporting coal, iron ore, and agricultural products to China under the UN sanctions adopted in 2017, electricity trade is reportedly not subject to these sanctions.
China has also significantly increased electricity imports from Russia and Myanmar. Electricity imports from Russia during the first to third quarters of this year amounted to 2,381 GWh, a 1.3% increase compared to the same period last year. According to SCMP, the Russian state-owned energy company has accepted China's request to double electricity exports in the fourth quarter compared to the same period last year. During the same period, electricity imports from Myanmar also increased by 44% year-on-year to 1,231 GWh.
According to SCMP, there is a possibility that the amount of electricity imports, which the Chinese government had previously restricted due to security concerns, may increase in the future. Last month, China produced 675,100 GWh of electricity domestically, while the imported electricity amounted to only 670.6 GWh, which is known to be far insufficient compared to the required electricity demand.
Professor Hou Yunhe of the University of Hong Kong explained to SCMP, "China has had a large amount of thermal power generation and a monopolized electricity industry, so the electricity imported from overseas has been practically minimal. Also, China has pursued a policy of not importing large amounts of electricity due to security concerns."
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