Session №4:
Interstate electric power associations and international cooperation in coal
industry
S4-3
Risks and barriers to the development of coal mining in Eastern Russia and NEA: the results of the Joint Study for UN ESCAP
Alexander Sokolov, Dmitry Sokolov
In 2010-2011, Melentiev Energy Systems Institute of Siberian Branch of the Russian Academy of Sciences (ESI SB RAS)has completed
the Joint Study “Status and Challenges to Coal
Industry for Sustainable Development in
North-East Asia and Identification of Opportunities for Subregional Cooperation in the Coal
Sector” in the framework of Working Group on
Coal (WG-Coal), the Inter-governmental Collaborative Mechanism on Energy Cooperation
in North-East Asia (NEA) under the agreement
with UN ESCAP.
with the second and third largest coal deposits
in the world and the biggest and fifth biggest
coal-producing countries in the world in 2009,
accounting for nearly 18% of global coal production. In 2008, NEA had the countries with
the biggest, fourth, fifth and eighth biggest
primary coal supplies in the world, which accounted for around 51% of global primary coal
supply.
The subregion also had the second largest net
coal exporter in the world and the second, third
and fifth largest net coal importers in 2009.
Significant amounts of coal are being traded in
the subregion, which provides considerable
economic benefits to countries in North-East
Asia. Based on UN Comtrade data, in 2008,
trade within the Asia-Pacific region accounted
for 39% of global coal export and 40% of global coal import. Of this, coal trade within NorthEast Asia accounted for 19% of Asia-Pacific‟s
coal export and 22% of coal imports, or 7%
and 9% of global coal export and coal import,
respectively.
Background and organization of the Joint
study
Background of the study was the decision of
the Senior Officials Committee (SOC) on Energy Cooperation in North-East Asia decided to
establish the WG-Coal. The goals of the WGCoal were to promote subregional cooperation
in the production and utilization of coal in an
environmentally sustainable manner; and facilitate the cross-border trade of coal resources,
coal products and electricity generated from
coal and the exchange of clean coal technologies in NEA.
The driving forces in the coal sector of NEA
include those with positive impacts, such as
economic growth, industrialization, need for
hard currency, pressure from private sector interest, urbanization, market development, price
development on the resource market, international agreements, and technology breakthroughs, among others, and those that have
negative impacts like environment and social
concerns (land and water resource use, pollutant emissions, waste generation, public health
and safety concerns, land disturbance, water
pollution, etc.) and climate change.
As agreed during SOC-5 and in accordance
with the approved TOR of the WG-Coal, the
working group is chaired by the Russian Federation, with ESI SB RAS as the nodal institution and ESCAP as the interim secretariat.
Major Findings from the Joint Study
Coal is and will remain the dominant energy
resource in the energy mix of North-East countries in the coming decades. In 2008, coal accounted for around 49.4% of total primary energy supply in NEA, up from nearly 37% in
2000, which is equivalent to a growth rate of
8.42% per year. The share of coal in the energy
mix may decrease but the absolute quantity is
expected to continue to increase.
Depending on the strength of these driving
forces, coal development industries and utilization policies may undergo different transformations with the changes in focus areas or approaches of management. These differences
are emerging as new areas for subregional co-
The subregion is also a major player in the
global coal industry: it includes two countries
1
Irkutsk, 2012
Asian Energy Cooperation: Risks and Barriers
operation in NEA on energy management in
general and in coal development in particular.
The Russian Federation had 157 billion tons of
proved coal reserves and China 114,5 billion
tons, accounting for 19% and nearly 14% of
proved coal reserves in the world, respectively.
Mongolia reportedly has 162 billion tons of
inferred coal reserves and 23 billion tons of
proved reserves, according to the Ministry of
Mineral Resources and Energy of Mongolia.
The Democratic Republic of Korea, Japan and
the Republic of Korea have 600, 355 and 133
Mt of proved coal reserves, respectively, as of
end 2009.
Responding to the call to address the various
negative driving forces to coal development
industries during the past two decades, NEA
countries have made significant progress in the
formulation of policies and implementation of
various programs and measures to mitigate
negative impacts on the environment and social
conditions. However, the progress towards developing and implementing policies particularly relevant to improving environmental sustainability and social aspects of coal production
and utilization is not consistent and fast enough
throughout the subregion.
NEA is also a major coal producing and consuming subregion in the world. In 2008, NEA
produced 1,642 Mtoe of coal or nearly 48% of
global coal production and consumed around
1,719 Mtoe of coal in 2008, accounting for
about 52% of global coal consumption. The
major uses of coal in NEA countries are for
power generation and industry. In 2008, coal
accounted for 57% of total power generation in
NEA, followed by natural gas (15%), hydropower (14%), nuclear (11%), and oil (4%).
Coal also accounted for 25% of the subregion‟s
total final consumption (TFC), and is mainly
consumed by the industrial sector (79% of
NEA‟s TFC), followed by the residential sector
(9%), non-energy use (6%), other users (4%),
commercial (2%) and transport (1%).
The lack of consistent and rapid progress in
various areas of coal development is now increasingly recognized as opportunities for subregional cooperation among the countries as
well as between the public and private sectors,
particularly in the areas of technology transfer,
research and development, coal mine safety,
etc. Such cooperation could provide benefits to
participating countries through technological
advancement, investment opportunities, increased knowledge base, reduced adverse environmental conditions in coal-related areas and
utilization, job creation, poverty alleviation,
etc.
In 2010, China and the Russian Federation
Federation were the largest and fifth largest
coal producers in world, with the United States,
Australia and India as the second, third and
fourth largest coal producers. In terms of coal
consumption, China, the Russian Federation
and the Republic of Korea were the largest,
fourth, fifth and eighth largest coal consumers
in the world.
The Role of Coal in NEA
North-East Asia, which accounted for nearly a
quarter of the world‟s population, nearly 27%
of global GDP and almost 29% of the world‟s
total primary energy supply (TPES) in 2008, is
highly dependent on coal. In 2008, coal supply
reached 1,719 Mtoe accounting for 48.36% of
NEA‟s TPES (3,549 Mtoe). Oil, gas, nuclear,
hydropower and renewable energy accounted
for 26%, 15%, 5%, 2% and 7%, respectively.
In contrast, global coal supply accounted for
only 27% of global TPES during the same period.
The use of coal is both a boon and a bane to
North-East Asian countries. The positive driving forces in the coal sector of NEA include
economic growth, industrialization, increased
hard currency, urbanization, market development, price development on the resource market, and international agreements, among others.
NEA has abundant energy resources, particularly coal, although these resources are not
evenly distributed throughout the subregion. As
of end 2009, the Russian Federation and China
had the second and third largest proved recoverable coal reserves after the United States.
In view of its abundance, wide geographic distribution and relatively low and stable delivered cost compared to other conventional fuel,
2
Session №4:
Interstate electric power associations and international cooperation in coal
industry
coal has been a major component in the power
and industry sectors that have supported the
development of NEA countries. According to
IEA (2010b), the rapid growth of Asia‟s economies, including NEA countries, has beenpowered by coal and coal demand is expected to
increase strongly as Asian countries continue to
increase living standards. Based on IEA
(2010d) statistics, from the period 2000 to
2008, the subregion‟s GDP grew by 6.94% per
year while coal consumption grew by 10% per
year. Coal consumption in NEA increased by
834 Mtoe, which is equivalent to 81% of the
global increase in coal consumption during that
period or 75% of increase in energy consumption in NEA.
S4-3
main industries of which are car manufacturing,petrochemicals and electronic appliances, is
also dependent on coal: coal accounts for
around 80% of electricity production and half
of overall energy consumption.
Coal consumption, however, has negative impacts including environment and social concerns and climate change, among others.
Coal mining, particularly surface mining, requires large areas of land to be temporarily disturbed (WCA, 2010). This raises a number of
environmental challenges, including soil erosion, land/mine subsidence, dust, noise and water pollution, and impacts on local biodiversity.
Underground coal mining also causes severe
subsidence, increasing refuse piles, and methane gas emissions (IEA, 2000). In China, underground mining has caused subsidence that
affected 400,000 hectares of land, produced
1,000 refuse piles occupying a land area of
5,500 hectares, and the emission of six billion
cubic meters per year of methane to the atmosphere.
This upward trend is expected to continue with
the addition of more generation capacities from
China and the Russian Federation. China plans
to close its smaller coal-fired power stations
and increase its coal generation capacity, By
2030, coal could account for 78% of China‟s
generation mix. The Russian Federation also
plans to increase its coal-fired generation share
from 27% in 2006 to 29% in 2010 and 37% in
2015 in order to leave more gas available for
export.
Coal mining accidents result from lack of or
insufficient safety systems and equipment and
the use rudimentary mining techniques, particularly in underground and small mines. These result to human cost, productivity losses and
economic costs associated with treating injuries
and compensating dependents.
The increased development and use of coal also
results to the development of infrastructure.
For instance the development of coal mines and
mine-related facilities provide employment opportunities and increased income to local governments that host them. In addition, transport
facilities are also constructed or upgraded to
ensure timely deliveries to domestic and international consumers. Improved transport facilities also benefit other economic sectors in NEA
countries.
Burning coal contributes to air pollution and
produces significant amounts of particulates,
SO2, CO2, and oxides of nitrogen. Emissions
are more severe when unwashed coal is
burned.CO2 emissions from the combustion of
fossil fuels in NEA reached 9,835 Mt in 2008,
or about 33% of global CO2 emissions. Coal
accounted for 67% of the subregion‟s CO2
emission, followed by oil (20%) and gas
(13%). During the same period, China had the
biggest CO2 emission from coal combustion
(5,432 Mt), accounting for 43% of total CO2
combustion from coal, followed by the United
States (17%) and India (8%). The Russian
Federation, Japan, and the Republic of Korea
ranked 4th, 5th 8th largest CO2 emitters from
coal combustion, accounting for a cumulative
total of 8% of total CO2 combustion from coal
in the world. Urban centers that are highly de-
Coal has also contributed to the growth of NEA
cities. According to an EIU report (2011), Beijing, which has a population of some 17.6 million and a per capita GDP of US$10,100, is
highly dependent on coal: 39% of Beijing‟s
total energy consumption and 100% for its
power generation are derived from coal.
Guangzhou, which has nearly 8million inhabitants and a GDP per capita of US$16,800, is the
political and cultural capital of the southern
Chinese province of Guangdong. This city, the
3
Irkutsk, 2012
Asian Energy Cooperation: Risks and Barriers
pendent on coal for their energy needs emit
huge volumes of pollutants. Beijing and
Guangzhou, which host many carbon-intensive
industries, emit around 8.2 and 9.3 tons of CO2
per capita year, respectively, higher than the
4.6 tons CO2 per capita average among 22
Asian cities (EIU, 2011).
for subregional cooperation in NEA on energy
management in general and in coal development in particular.
For instance, China faced decades-long supply
shortage of coal but was able to meet the demand of its fast growing economy. It was able
to do this by transforming the coal industry‟s
regulation and administration from a command-economy model to a market-oriented
model. In addition, production methods have
been improved by adopting modern technology
and efficient equipment in many large coal
mines. Furthermore, with the rapid integration
of Chinese coal into the globally traded coal
market, Chinese import and export patterns
now have significant impacts on international
coal prices.
Coal is also used in households for heating
homes in NEA countries (China and Mongolia)
resulting to the production of a range of indoor
air pollutants.
Policies of NEA Countries on Coal
Responding to the call to address the various
negative driving forces to the coal sector during
the past few decades, NEA countries have
made significant progress in the formulation of
policies and implementation of various programs and measures to mitigate negative impacts on the environment and social conditions.
These policies include the following:






Despite the achievements, however, the coal
industry is still among the most troubled industries in China. Among the problems faced by
the industry are (1) a fragile production structure resulting from frequent change in government policy related to stopping small mines‟
production, (2) declining government investment in the sector, (3) a poor safety record, (4)
environmental pollution problems, (5) bottlenecks in coal transportation (rail and port) and,
(6) wide persistence of out-dated technology.
On top of these, the sector‟s development is
hampered by the regulatory structure of the related railway and power sectors. Electricity
prices for the power sector are not liberalized
and the railway networks are still under monopoly control. Conflicts arise from the development goals of the coal, power, and railway
industries, and considerably hamper the healthy
development of the coal industry.
improvement of energy supply capacity,
including the exploration and development of coal mines and coal-related facilities, and construction or improvement of transport, storage and other facilities as well as fuel diversification,
promotion of energy conservation programmes in both upstream and downstream sectors of the coal chain,
acceleration of energy technology development including the R&D and
commercialization of coal-related technologies,
increased coordination between energy
and environmental development, including pollution control, coal mine
safety, coal working conditions,
intensification of energy system reform,
including the restructuring of the coal
and the power sectors, and
increasing international cooperation, including in trade and technical cooperation.
To address this situation, the coal sector is now
undergoing a radical restructuring, whereby
upwards of 14 major coal-power bases, which
integrate coal and power businesses at key sites
and each producing over 100 mt of coal with
consuming industries on-site, are established. Under this plan, about 50% of China's
coal production would be produced at coalpower base sites that are controlled by key
state-owned enterprises and the central government. This coal-power base policy is expected to result to the following: (1) enhanced
Depending on the strength of the driving forces, policies in the coal industry may undergo
different transformations with the changes in
focus areas or approaches of management.
These differences are emerging as new areas
4
Session №4:
Interstate electric power associations and international cooperation in coal
industry
central government control over the coal sector
and over coal prices, (2) modernization and
mechanization of a larger share of China's coal
production, in theory bringing larger economies of scale to the sector, and (3) the massive
rebalancing of China's coal market implied by
coal-power bases is poised to have important
impacts on the globally traded coal market.
S4-3
bility and viability, so that they used to be delayed or cannot be materialized.
In pursuing efforts to facilitate subregional cooperation in coal, the following challenges
need to be addressed and tackled by NEA
countries:(1) identification and prioritization of
cooperation projects for common interests, (2)
enhancement of policy cooperation among the
government and business sectors, (3) improvement of investment environment, (4)
lessening political uncertainty, and (5) enhancement of market compatibility.
Opportunities for subregional cooperation
in the coal sector
Given the diversity of coal resource endowment and market structure among the countries
in the subregion, NEA shows tremendous potential for regional cooperation in the coal sector. Promoting regional energy cooperation can
create more opportunities for energy trade
among the countries in the region as well as for
improvement of energy efficiency.In light of
expected steady increases in demand for coalin
the region, coal importing countries in NorthEast Asia, namely, China, Japan, and the Republic of Korea, could promote broader energy
cooperation with Mongolia and the Russian
Federation for coal development and utilization. Construction of coal trade infrastructuresis required in North-East Asia in order to facilitate the intra-regional coal trades among the
countries in the region. This undertaking would
necessitate massive investments. Therefore, a
multilateral cooperative mechanism for creating a more favourable environment for coal
investments and financing in the subregion
could supplement existing bilateral agreements.All countries in the region also need to
cooperate to address the adverse environmental
impacts of coal development and use in NEA.
The Collaborative Mechanism was launched as
a voluntary and non-binding collaborative
mechanism for intergovernmental consultations
and decision-making on energy in North-East
Asia, on the basis of the „Ulaanbaatar Statement‟ presented by a consensus of the Senior
Officials of the four countries in North-East
Asia in November 2005. At present, the Collaborative Mechanism is beginning to emerge
as one of the important initiatives that are active in the subregion, and is the only intergovernmental mechanism that focuses on energy
alone.The Collaborative Mechanism will continue to work cooperatively over the next years
until 2014 to promote its vision and pursue its
objectives.
As agreed by the Senior Officials of the participating countries, the Collaborative Mechanism
will continue its broad-based approach to energy security and will continue to promote policy
approaches and adopt work programs and undertake actions and activities under the
Ulaanbaatar Statement within the following
strategic agenda, which may include:
Regional energy cooperation among the countries in NEA has shown a relatively slow progress compared with the other region in the
world. Despite the huge potentials for multilateral cooperation, most of energy development
cooperation projects in NEA have been
planned and/or implemented at the unilateral or
bilateral level without considering the regional
market characteristics as a whole. Thus, many
projects for energy development and trade in
NEA faced uncertainty related with investment
risk, future market size and commercial feasi-
Information exchange to improve energy security such as energy policies and programmes,
investment policies to promote sustainable energy development;
Fiscal policies related to energy industries,
trend analysis of national and subregional energy markets;
Development and implementation of collaborative projects, legal and institutional arrangements to cope with oil supply disruption, emergencies, transboundary energy development
and trade of fossil fuel and electric power;
5
Irkutsk, 2012
Asian Energy Cooperation: Risks and Barriers
Cooperative policies and measures to promote
energy efficiency and energy resource conservation; as well as collaborative activities to
promote greater utilization of renewable
sources of energy.
There is a wide scope for improving technologies for the exploration, development and use
of coal. New and promising technologies could
be studied for possible application in NEA
countries.
The Five-Year Strategy for the Collaborative
Mechanism (2010 – 2014) has identified the
development of coal resources as one of the
priority areas that will contribute to an enabling
policy and market environment for regional
energy cooperation. During the 8th meeting of
the WG-EPP, member countries prioritized
three areas for possible joint cooperation projects. These are: (1) coal trade and transport,
(2) coal utilization, and (3) coal and environment.
Coal utilization
Joint development of coal-fired power plants
R&D, demonstration and market assessment of
coal conversion and low-carbon technologies
(coal-to-liquid, coal-to-gas, etc.). Synthetic
fuels and other chemicals could be produced
from coal through coal-to-liquids (CTL) technologies including coal gasification combined
with Fischer-Tropsch synthesis to produce liquid fuels, and direct coal-liquefaction technologies. Coal gasification is already widely used
in the production of chemicals and fertilizers.
In China, 8,000 coal gasifiers are in operation.
A South African company (Sasol) operates two
coal-to-liquids plants, with output consisting of
80% synthetic diesel and 20% synthetic naphtha. Process technologies for the production of
synthesis gas from coal are well established,
but unit costs of CTL production remain high
compared with conventionally refined products. Howevcr, where coal can be delivered at
low cost, CTL could be competitive. A comparative study could be done to determine the
viability of CTL in specific areas and certain
conditions.
Based on the country reports and other sources,
the possible projects that could be implemented
by NEA countries on a bilateral or multilateral
basis during 2012 to 2014 and beyond could
include:
Coal trade and transportation
Joint development of important coal mines and
coal-related facilities and infrastructure. For
instance, the coal mines in Mongolia (Tavan
Tolgoi and others) and in the Russian Federation (Elga coal mine) could be developed jointly by project developers and investors from
NEA countries. Most of these opportunities are
being taken up by state and private companies.
For instance, a shortlist of 6 developers out of
15 applicants, including a partnership and a
consortium from NEA countries, are competing
for the right to develop the highly promising
Tavan Tolgoi coal mine.
Coal and the environment
Improvement of coal quality
Improvement of coal quality testing laboratories and facilities at production and delivery
points (e.g., border ports)
Construction or improvement of related
transport infrastructure (road, rail, sea) between
and through NEA countries. As new mines are
opened, transport, storage and other related facilities need to be constructed or improved to
ensure the timely and efficient delivery of coal
to consumers. Pre- and feasibility studies could
be undertaken to improve or install new facilities and infrastructures. Financing mechanisms,
including private-public partnerships, for this
undertaking could be explored.
Establishment of public-private partnership
among NEA countries to accelerate clean coal
development and deployment of clean technologies and joint R&D in clean coal on the basis
of this partnership
Joint drawing up a list on CDM Project Design
Document (PDD) in coal-based energy system
(production, processing and utilization), settlement of bright candidate project for CDM,
and joint economic feasibility study on it
R&D and technology transfer in the areas of
coal exploration, development and utilization.
R&D, demonstration and market assessment of
coal by-products in the production and utiliza6
Session №4:
Interstate electric power associations and international cooperation in coal
industry
tion stages. Coal-bed methane could be recoveredto reduce GHG emissions in coal mining
operations. The applicability of carbon capture
and storage (CCS) to reduce CO2 emissions to
the atmosphere from coal-fired power stations
in NEA could also be investigated.
S4-3
shutting down and regulating of unsafe coal
mines and decreasing coal exports. From
2006 to 2009, coal supply and coal demand
are almost balanced.
o While coal will remain a dominant energy
resource in China‟s energy mix, coal development in China will be based on the “Six
Transformation” for China‟s energy development, which is expected to result to coal
accounting for 50% of total energy consumption by 2030:
Efficiency improvement of coal-fired power
plants. One of the subprojects of the North-East
Asian Subregional Programme for Environmental Cooperation (NEASPEC) looked into
the common problems of coal-fired power
plants contributing to increased pollutant emissions, with an aim to develop a regional programme that would demonstrate locally, costeffective means of reducing sulfur dioxide
from coal combustion in older power plants.
Activities focused on technology transfer and
institutional development in coal quality improvement, appropriate hands-on operation &
maintenance skills, efficiency enhancing
equipment and pollution control technologies.
A similar programme could be pursued by the
Collaborative Mechanism.



Key messages from the Country Reports

The country reports from China, Mongolia, the
Republic of Korea and the Russian Federation
show the status of development of their respective coal sectors, including the role of coal in
their national economies and the national priorities for further development of the coal industry.


China
o China has the world‟s second largest coal
reserves and, in 2008, was the biggest coal
producing and consuming country in the
world. The country is also highly dependent
on coal, which account for over 70% of total energy consumption per year. China was
a net coal exporter, but it is now the second
largest net coal importer in the world. This
could be attributed to increasing demand
for coal, particularly from the power and
the industry sectors. During 2001-2004,
coal output increased the fastest in the history of China, with coal demand outstripping supply in 2003 to 2004. By 2005, the
increase in coal output slowed down due to
Transformation from ensuring supply to
foster efficient consumption through
science and technology [from stressing
ensuring supply to foster consumption
and regulate and control in a scientific
manner];
Transformation from mainly depending
on coal to develop diversified green and
low-carbon energy;
Transformation from excessively relying on domestic energy to lay equal
stress on domestic development and international cooperation;
Transformation from ecological and environmental protection lagging behind
energy development to the coordinated
development of both;
Transformation from the resource-based
development mode to technological innovation-driven mode;
Transformation from separated development of each kind of energy to complementary and systematic interconnection of all kinds.
o China continues to expedite the restructuring of the power source, optimize energy
efficiency and conservation and environmental protection and economic development in the country. Coal is the dominant
energy source in the power sector. In 2007,
coal accounted for around 83% of China‟s
power generation. During this period, severe coal shortage occurred in power plants
and grid in southern China, resulting to
shortage of power.
o China continues to address the environmental impacts of coal development and use
through land reclamation, use of
7
Irkutsk, 2012
Asian Energy Cooperation: Risks and Barriers
and coking coal after Japan. The country‟s
import dependence ratio of energy consumption has steadily increased from 73%
in 1980 to 96.2% in 2009. In 2009, nuclear
energy accounted for 78.2% of the country‟s total primary energy supply followed
by coal at 3%, hydro at 3%.
wastewater discharges, coal mine methane
recovery, use of clean coal, application of
energy savings and CCS techniques, and
pollution control measures, among others.
o China continues to improve its infrastructure to transport coal from the western part
of the country to the eastern part, where the
main coal consumers are, and to receive
imported coal.
o In September 2008, the Republic of Korea
announced a long-term strategy („National
Energy Basic Plan‟) that will determine the
direction of its national energy policy until
2030. The plan has setup its long-term energy goals in the following four areas:
Mongolia
o Mongolia has very significant coal and limited oil and gas resources. Coal is the most
important in Mongolia, accounting for
68.5% of total energy supply, followed by
petroleum (23.3%) and hydro (less than
0.1%). The power sector is highly dependent on coal.


o Coal is also an important export earner that
contributes to the country‟s economic
growth. New mines, like the Tavan Tolgoi,
are attracting domestic and overseas investors, with a possibility of exporting coal to
countries in NEA. One factor to consider in
tapping Mongolia‟s coal resources is the
underdeveloped transport infrastructure and
the distance from the coal mines to domestic and international markets.


o The Government‟s proposed “Coal Programme for 2010-2025”aims for support
for private sector involvement in the coal
sector, establishment of a free market
mechanism, establishment of a skilled labor
force for coal mining, increased policy coordination, and increased cooperation with
international organizations in the areas of
coal mining and processing, and techniques
and technologies. The Government has also
issued a resolution on the power sector restructuring and adopted the Mongolia Integrated Power System (MIPS) program,
both of which would impact the coal sector.
Improving energy efficiency and reducing energy consumption. By 2030, The
Republic of Korea will move toward a
service-based economy, as opposed to
the energy-intensive manufacturing industry;
Increasing the supply of clean energy
and reducing the use of fossil fuels. By
2030, the share of renewable energy in
primary energy consumption will reach
11% from 2.4% in 2007;
Boosting the green energy industry. By
2030, Green energy technologies of the
Republic of Korea will be comparable
to levels of most advanced economies;
and
Ensuring citizens have access to an affordable energy supply. The Government will ensure that energy sources are
accessible and affordable to low-income
households.
o Mindful of the environmental impacts of
coal development, the Republic of Korea
established the framework for domestic
mining. To reduce the environmental impacts of using coal, the country is also investing in research to develop clean coal
technologies,
low-sulfur
coal
(for
cookstoves), coal mine methane, etc.
o The Republic of Korea also promotes investments in overseas coal resource projects in order to ensure stable coal supply.
Every three years, the Government devises
a 10-year framework plan for foreign resource development to promote the rational
development of foreign resources, includ-
Republic of Korea
o The Republic of Korea has very limited energy resources and is dependent on imported oil, coal and natural gas. It is the world‟s
second largest importer of both steaming
8
Session №4:
Interstate electric power associations and international cooperation in coal
industry
ing coal. Under the plan, different tactics
would be implemented, including the joint
entry of resource development and infrastructure business.
S4-3
References
EIU (2011). Asian Green City Index: Assessing the environmental performance
of Asia‟s major cities, a research project
conducted by the Economist Intelligence
Unit, sponsored by Siemens, published
by Siemens, Munich, Germany, downloaded
from
http://www.siemens.com/press/pool/de/e
vents/2011/corporate/2011-02asia/asian-gci-report-e.pdf in March
2011.
Russian Federation
o The Russian Federation has the second
largest coal reserves in the world and it still
has to develop most of its reserves in Western and Eastern Siberia (80% of total coal
reserves). Coal accounts for 11.7% of the
primary energy resource production and
13% of energy consumption in the Russian
Federation. Coal is used in the electricity
and heat production as well as industry.
The Energy Strategy of the Russian Federation for the period to 2030 plans to increase
the share of coal for electricity and heat
production at thermal power plants.
IEA (2010a). CO2 Emissions from Fuel Combustion, 2010. International Energy
Agency, downloaded via www.iea.org
on 14 February 2011.
IEA (2010b). Coal Information 2010. International Energy Agency, downloaded via
www.iea.org on 9 September 2010.
o Under this Strategy, the Government also
plans to modernize and intensify coal development and production, improve the infrastructure for coal transport, remove market barriers for internal and external coal
trade, and implement pilot projects on deep
coal mining and coal methane extraction
using Russian technologies, among others.
IEA (2010c), "Key world energy statistics",
2010. International Energy Agency,
downloaded via www.iea.org on 14 February 2011.
IEA (2010d), "World energy balances", IEA
World Energy Statistics and Balances (database).
Downloaded
from
http://stats.oecd.org/ on 22 February
2011.
o The export of coal to NEA countries could
be affected by insufficient transport capacity, particularly for rail and seaports, and the
distance from mines to railways and seaports. The Russian Federation has separate
bilateral agreements with Mongolia and
China for the development and export of
coal as well as the development of transport
infrastructure including railway and seaports.
Rui, Huaichuan, et.al. (2010). Remaking the
World's Largest Coal Market: The Quest
to Develop Large Coal-Power Bases in
China, Working paper, published by the
Program on Energy and Sustainable Development, Stanford University, December,
2010.
Downloaded
from
http://pesd.stanford.edu/publications/rem
aking_the_worlds_largest_coal_market_t
he_quest_to_develop_large_coalpower_
bases_in_china
o Considering the environmental impacts of
coal development and utilization, the Government, as stated in the Russian Energy
Strategy until 2030, aims to increase the
standards and technical requirements in
coal mining safety and working conditions,
coal quality, environmental protection,
workers safety, etc.
UN
Comtrade database (2011).
www.comtrade.un.org
WCA (2010). Coal mining and the environment,
World
Coal
Association,
www.worldcoal.org
9