The Proposals and Approaches to Push Forward Northeast Asia Regional Power Interconnection

CHINA ELECTRICITY COUNCIL LEI Xiaomeng

Chief Expert for Regional Power Interconnection

2016. Seoul

中国电力企业联合会 CHINA ELECTRICITY COUNCIL

1 Preparation of NEA Regional Power Interconnection Forum 2016 in Beijing

Summary of the First Meeting of the Forum

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2

Contents

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Undergoing Studies for NEA Power Interconnection

Existing Multilateral Frameworks 3

Proposals and Approaches

Mr. Yang Kun, Executive President of CEC, proposed the initiative to hold the NEA Regional Power Interconnection and Cooperation Forum in Beijing this October on GEI International Conference in March, 2016

1. Preparation of NEA Regional Power Interconnection Forum 2016 in Beijing

The detail proposal presented by Mr. Lei Xiaomeng, Chief Expert for Regional Power Interconnection, CEC on the session 2 of 2016 GEI International Conference.

1. Preparation of NEA Regional Power Interconnection Forum 2016 in Beijing

The organizers

The supporter

1. Preparation of NEA Regional Power Interconnection Forum 2016 in Beijing

NEA: Russia(East Siberia and Far East), Mongolia, China(North and Northeast regions), Japan, DPRK. ROK.

Contacts with: governments, power utilities, transmission companies, International organizations research institutes.

Positive responses from most of potential participants

1. Preparation of NEA Regional Power Interconnection Forum 2016 in Beijing

The Draft MOU It was sent to the potential participants and received different comments before the forum. The MOU was not discussed on the forum.

Northeast Regional Power Interconnection and Cooperation Forum

MOU Article 1 Purpose Article 2 General Provisions Article 3 Institutional Framework Membership, Chairperson, Meetings, Secretariat, Language, WGs Article 4 Financing and other support Article 5 Relation to the Other Agreements Article 6 Withdrawal

2. Summary of the First Meeting of the Forum

China: Research institutes

Japan:

Mongolia:

Korea:

Russia:

International Institutions:

2. Summary of the First Meeting of the Forum

A. Opening Session B. Country Presentations on the Current Status of Power Industry, Power Development Plans and Cross-Border Trading C. Outcomes of the NEA Regional Power Cooperation Mechanism D. Presentations on promoting NEA Regional Power Interconnection E. Discussion on RPIC Forum and NEA Power Cooperation Mechanism

1 Keynote speech 23 Presentations 14 Representatives presented comments on Session E

2. Summary of the First Meeting of the Forum

Focal Issues

Asia Super Grid (ASG)

Studies, Ideas, Objectives

2. Summary of the First Meeting of the Forum

Focal Issues

Intergovernmental/multilateral arrangement

1. Almost all the presenters emphasized the necessity of the intergovernmental arrangement to be driven by multilateral or bilateral cooperation. The Ministry of Energy of Mongolia presented positive response to support intergovernmental arrangement. 2. Many participants from power utilities, transmission companies and consulting institutes suggested: the importance of joint planning study, step by step. 3. Almost all the presenters suggested: The forum should be held regularly, once or twice a year. 4. UN-ESCAP’s important roles in making intergovernmental arrangement, AIIB positive attitude, NRDC suggestions. 5. Some presenters mentioned: political issues, unstable diplomacy, DPRK’s attendance. 6. Summary on the closing session made be CEC: Closer cooperation for efficiency, holding the forum regularly cooperating with international institutions, preparing TOR of the forum.

3. Existing Multilateral Frameworks for NEA Power Interconnection

The Worldwide Overview of Regional Power Interconnection Organizations

HAPUA&APG

NEAREST: Northeast Asia Region Electrical System Ties Source: EN+ group in EWG APEC 2012

Regional economic communities, International financial organizations, Power utilities and etc.

SAPP Intergovernmental MOU Inter-utility MOU SADC leadership

SAARC Intergovernmental Framework Agreement for Energy Cooperation (Electricity)

GMS-RPTCC IGA for Power Trading IG-MOUs ADB supported

ASEAN-HAPUA MOU on ASEAN Power Grid HAPUA

3. Existing Multilateral Frameworks for NEA Power Interconnection

Sighed MOUs

Trilateral MOU for joint study of ASG SKOLTECH, KEPCO, En+

3. Existing Multilateral Frameworks for NEA Power Interconnection

4 the NEA Energy Security Forums

Forums, workshops, Seminars… , for NEA regional power interconnection

Northeast Regional Power Interconnection and Cooperation Forum

2 workshops in Russia, 2014 and 2015

Conference on NEA Energy Connectivity in Ulaanbaatar, 2015

3 workshops, 2 in China and 1 in Russia from 2001 ～ 2003: Power Grids Interconnection in Northeast Asian

……

4. Undergoing Studies for NEA Power Interconnection

Feasibility Study 2016

4. Undergoing Studies for NEA Power Interconnection

4. Undergoing Studies for NEA Power Interconnection

Joint Initiative

4. Undergoing Studies for NEA Power Interconnection

Project Number: 48030-001 Policy and Advisory Technical Assistance Project (PATA) Mongolia: Strategy for Northeast Asia Power System Interconnection In tendering process. Co-financed by the Climate Change Fund, ADB 0.75$Million the People’s Republic of China Regional Cooperation and Poverty Reduction Fund, 0.5$Million the Republic of Korea e-Asia and Knowledge Partnership Fund, 0.5$Million

CEC, ECS, consulting firms and experts from Mongolia and Japan has formed a consortium for bidding.

5. Proposals and Approaches

Based on the above:

1. Establishment of NEA Regional Power Interconnection and Cooperation Forum (NEA-RPIC) Focus on power interconnection, avoid broad issues like energy security, combine existed forums, workshops, seminars together. 2. Because of several studies in parallel the outcomes may be needed to be shared. 3. CEC’s would like still to keep close cooperation with international institutions for organizing the NEA-RPIC Forum jointly. 4. NEA-RPIC Forum will play important role in promoting intergovernmental cooperation.

5. Proposals and Approaches

Initial Concept of Terms of Reference for NEA-RPIC Forum

Purpose Combine similar forums, workshops, seminars, avoid duplicated work, exchange and share outcomes of studies, increase awareness of stakeholders including generation, transmission and demand side. Promote government understanding and intergovernmental agreement.

Background Upon the participants consensus in first meeting of NEA-RPIC Forum: Necessity of establishment of NEA-RPIC Forum, focus on power interconnection, requirement of all the stakeholders….

Establishment and Composition Participants invited: governments, international institutions, power utilities, TSOs, power companies, consulting firms, research institutes and etc.

5. Proposals and Approaches

Initial Concept of Terms of Reference for NEA-RPIC Forum

Meetings Working language and Summary/Minutes Meeting frequency: once or twice a year depending on necessity. Venues of meetings: rotated in alphabetical order of the countries’s name generally. Joint organizers and joint Secretariat. Summary/Minutes: prepared by the joint secretariat and circulated among participants. Working language: English

Decision and reporting The joint secretariat make report annually. Meeting time and venues are jointly decided by organizers after discussing with stakeholders.

Financing and Costs Travel and accommodation costs: participants’ respective institution of each countries. Meetings costs: host countries of meetings.

Working Groups The joint secretariat may organize WGs upon requirements of stakeholders each countries. Meetings costs: host countries of meetings.

Welcome you to contact me:

LEI Xiaomeng Chief Expert for Regional Power Interconnection CHINA ELECTRICITY COUNCIL Mobile: +86 13701104785 Tel(o): +86 10 63414851 Fax: +86 10 63415729 Email: leixiaomeng@cec.org.cn ADD: No.1 Lane Two, Baiguang Road, Xicheng District, Beijing 100761, China

Thank You！