AORC Technical meeting 2014

http : //www.cigre.org B4-1076 AORC Technical meeting 2014 Construction the North-East Asian Supergrid for Co-prosperity and Peace Kyu-won Jeong, Kwang-hee Hong, Sung-yun Hong, Kab-ho Park, Hong-gyun Kim, Bong-soo Moon KEPCO The Korea Sam7805@daum.net / Dr. Kyu-won Jeong The Supergrid is a highly developed electrical grid for unified operation of various energy sources like heat, water, nuclear and renewable energy synthetically and a wide area electrical grid for trading big power between nations. The North-East Asia region has sufficient conditions including population, area, GDP and trade to construct the Supergrid. And the North-East Asia is emerging as a world best global market because of continuous economic growth. So it will be counted on as a global leader. The North-east Asian electrical grid has different frequencies, system sizes and stances about constructing Supergrid between nations, but if North-east Asia supergrid is realized, electric power field will create business model for each countries. In this paper, enforcement situation of constructing North-east Asian Supergrid promoted by the KEPCO, political, economical and technical issues, comparative analysis of communication network and research methods will be described. KEYWORDS North-East Asia Supergid; Electric power grid transaction; SuperGrid. 1

1. Background and Motivation One of the prevailing trends in the power industry worldwide is the development of the Supergrid. The Supergrid is a highly developed electrical grid, which is operating various energy sources like electric power transaction, renewable energy synthetically and a wide area electrical grid constructing for interchanging big power. The Supergrid exist in North America (primarily between US and Canada), in Europe and between countries of the former Soviet Union and their neighbors. Similarly, The Supergrid has been formed in parts of South America, Africa and Southeast Asia. The potential for formation of the Supergrid in the Middle East and in the South Asia have been studied in the last decade. Typical Examples of the Supergrid are the Nord EU Supergrid to use offshore wind power of the North Sea, the Sud EU-Maghreb Supergrid to utilize solar power of the Sahara Desert, the Grand Inga project to make use of hydroelectric power of the Congo, and the projects will be invested about 120B$ until 2020, 453B$ until 2030, 1,099B$ until 2050. Fig. 1. Promotion Status of Foreign Supergrid The need for system integration becomes more apparent over time driven by the growing geographical disparity between load centers and potential sources of relatively inexpensive and/or available power supply. As in many other countries, abundance of renewable resource such as wind and solar in certain areas is often accompanied by the lack or absence of electricity demand in these areas (e.g. Mongolian Gobi desert). On the other hand, concentration of demand in urban areas and industrial zones (e.g., in South Korea) is often an indication of higher than average population density, high cost of land and stringent environmental regulation all these factors are serious obstacles to new generation site. The Supergrid has many Benefits that include reduction in the local requirements for installed generating capacities due to daily and annual diversity in peak loads between countries and regions, increase in reliability of regional electric power systems (EPSs) that become interconnected, improved integration of variable renewable resources through the expansion of the energy balancing footprint over multiple countries and regions, revenues generated through the incremental cross-border power trade and reduction in electricity prices and resulting consumer expenditures. If developed, the North-East Asian SuperGrid(NEASG) will have broad economic and political implications which extend well beyond the power sector of the covered footprint. For example, from the perspective of the regional economics of Siberia and Russian Far East, development of the NEASG could be considered as an opportunity to export electric energy, capacity and ancillary services to other countries of NEASG. However, it higher benefits to the economy of these regions could be derived from export of products and/or services of energy intensive technologies. 2

2. Electric power grid status of North-East Asia countries It will focus on the development of high voltage interconnection forming the NEASG and covering Eastern regions of the Russian Federation, primarily Siberia and Far East, Northern China, Mongolia, Democratic People s Republic of Korea (DPRK), Republic of Korea (ROK) and Japan. Existing the Supergrid between some NEASG countries facilitate only a limited volume of near-border power trade between these countries, such as Russia Mongolia and Russia China interconnections. The North-East Asia region has sufficient conditions to make the Supergrid. It occupies about 20% of world population, area, GDP, trade, and is emerging as a world best global market because of continuous economic growth, and will be counted on as a global leader. But in North-East Asia enmity and conflict took priority over joint co-operation as political ideology problem and historical background. Economical co-operations like gas pipeline, linking of railroad, resource developement and electric power grid are going well. Each country of the North-East Asia is trying to stabilize power grid and last sustainable economic growth. Electric power grid between North-East Asia countries has different frequencies, system sizes, standpoints regarding constructing electric power grid connection in Table 1. So a judicious approach method is required on the basis of mutual interest to link electric grid with other countries having different power grid system and circumstance. If North-East Asia supergrid is realized, electric power field will lead opportunity of accompanied development. Country Area ( 1,000 km2 ) Population (Million) Capacity (MW) Peak Voltage (kv) Frequency (Hz) Price Index (Korea = 100) ROK 100 48.75 86,989 ( 13) Summer, Winter 765 345 154 60 100 220 DPRK 123 24.50 6,928 Winter 110 66 60-1,150 Russia 17,075 142.86 225,508 Winter 750 500, 330 50 50 ~ 70 Japan 378 127.92 282,315 ( 12) Summer, Winter 500 275 220 50 60 250 ~ 300 China 9,600 1341.00 10,600,000 ( 12) Winter 1,000 750 500, 330 50 100 220 1,570 3.13 1,070 Winter 110 50 - Mongolia 35 Table. 1. Outline of Electric Power Grid in North-East Asia 3

3. Promotion status of establishing North-East Asia Supergrid Today, a number of efforts were being made to establishing North-East Asia Supergrid. The most active countries are the Russia and the Japan. The EN+ energy resource company announced a plan to sell electric power to the Korea and Japan, etc through developing energy resources of Siberia and far East Asia, and establishing Supergrid at Vladivostok APEC meeting in Sep 2012 as in Fig 2. Fig. 2. Supergrid Plan of EN+ Group The CEO of State grid corporation of China set forth a plan to export electric power 5,000km long from Xingang to Europe with new regeneration energy and HVDC in the Paris in July 2012. Fig. 3. Supergrid Plan of China State grid The Japan is facing strong opposition to the future development of nuclear technology and pressure to retire existing nuclear capacity combined with absence of domestic fossil fuels create a strong incentive for Japan to seek alternative sources of power. While development of renewable technology is one option, Japan may become increasingly interested in integrating, or at least interconnecting its electrical grid to other countries in NEASG Especially, SON masayoshi has a plan to invest electric power business through setting up Softbank Energy in 2011 sharing peak and creating profit natural energy development and electric power grid between nations. Son masayoshi s plan is to interconnect South-West Asia like Taiwan, Indonesia and India, and to transmit electric power 38,000km long through developing new regeneration energy like wind and solar energy in Gobi desert. The Japan Policy Council, founded by former government officials, business and labor leaders and scholars, aims to create a grand design for Japan. The Japan Policy Council has a plan to expand the Supergrid from Japan to Australia through making the Green Energy Grid Organization(GEGO) and to start the Tohoku Green Energy Grid Project(TGEG) and improving the construction and budget plans for the international power grid as in Fig. 3. 4

Fig. 4. Supergrid Plan of SoftBank and Japan Policy Council Also the KEPCO is trying to make the grid interconnection with the China, Russia and Japan. The Russia has abundant resources in Siberia, there are various routes to link with the China and it is the most nearest distance from the Korea to the Japan. We have positive position to establish the SuperGrid with neighbor countries. There are three reasons. The First is power supply and demand. Because the Korea is like isolated island in power field, it tends to undergo power shortage problem. But that would be solved by peak-sharing between NEASG countries. The second is to develop business models using price gap and core technology. That is, it is creating added value through developing business model linking with the NEASG, generating cheap electricity using abundant resources of the China and Russia and selling it to countries that concentrate electricity demand. The last is energy co-operation through power trade. The reason why all these things could be possible is the location of the Korea as a hub of the North-East Asia. 4. Conclusion Fig. 5. North-East Asia Supergrid Plan of KEPCO It needs a phased and practical approach taking long time and uncertainty into consideration in table 2. At first, we should design the basic model and suggest. After joint feasibility study, we need to setup an organization council between nations that attend an expert group about technique, economy, policy and power trade through entire country s support and close co-operation to realize the Supergrid. Having the result of joint study, we have to establish investment plan. It is needed that huge investment cost in constructing Supergrid is inevitable and economical and stable financing way and building a system that collect the investment cost and invest consistently. Finally, we could make successful launch through reducing risk and uncertainty as the gradual business progress. 5

Taking the initiative is essential for legal system(grid code) to build and operate Supergrid effectively and to integrate management system of Supergrid. That is, it is necessary that agreement, adjustment and institutionalization to quadrate legal system. Also, rational method of operation will need because of difference of technical standard between nations. Now more than ever, the role of the Korea is crucial as considering the circumstance. The reason is due to create various earnings models through locating hub of the North-East Asia. How the Korea prepare establishing the NEASG will decide whether the Korea could take lead the common prosperity and relaxation of tension of the North-East Asia. I hope for the NEASG era led by the KEPCO through perfect provision. Consideration long-term period and uncertainty of business Phased and practical Approach Promotion after constructing Energy council between nations government and electric company, etc It is essential to attend related field expert group technique, economy, policy and transaction, etc BIBLIOGRAPHY Table. 2. Promotion Direction of North-East Asia Supergrid [1] The Supergrid Market 2012-2022 (VisionGain. February 2012) [2] Ways of Creating International Connections in East Asia and Environmental Implications / L.S. Belyaev, S.V. Podkovalnikov, G.V. Shutov, N. I. Voropai // IEEE Power Engineering Review. - 1998. - Vol. 18. - 8. - pp. 7-10. [3] Power Integration in Northeast Asia: Studies and Prospects / L.S. Belyaev, L. Yu. Chudinova, O.V. Khamisov, S.V. Podkovalnikov, V.A. Savelyev // Proceedings of the 2nd International Conference Energy Integration in Northeast Asia, September 21-22, 2000, Irkutsk, Russia. Irkutsk: Energy Systems Institute, 2000. pp.19-24. [4] Studies of Interstate Electric Ties in Northeast Asia / Belyaev L.S., ChudinovaL.Yu., Khamisov O.V., Kovalev G.F., Lebedeva L.M., Podkovalnikov S.V., Savelyev V.A. // International Journal of Global Energy Issues.- 2002.- Vol.17.- 2.- pp.228-249. [5] The Economic Effectiveness of Interstate Electric Tie Siberia-North China Considering the Seasonal Differences of Annual Load Maxima / L.S. Belyaev, L.Yu. Chudinova, V.A. Savelyev, O.V. Marchenko, S.V. Podkovalnikov Short Bio-data of Main Author Kyuwon Jeong. He Received the B. S., M. S., and Ph. D. degrees in electrical Engineering from SungKyunKwan University, Seoul, Korea, in 1993, 1995 and 2001, respectively. He is currently a Senior Manager in a Grid Planning Office at Korea Electric Power Company (KEPCO) Seoul, Korea, His interests include High Temperature Superconductor (HTS) facilities development and application & North- East-Asia Supergrid. 6