Northeast Asia Power System Interconnection ADB assistance

Shannon CowlinPrincipal Energy SpecialistSustainable Infrastructure Division East Asia DepartmentADB

NEARPIC Meeting10 December 2020

Asian Development Bank: Who We Are

▪ Founded in 1966

▪ A multilateral development bank

▪ Headquartered in Manila, Philippines

▪ 40 field offices

▪ ~3,500 employees, 64 nationalities

Our Mission: to help our developing

member countries reduce poverty and

improve quality of life

• ADB Technical Assistance Project for Mongolia

• $1.75 Million, approved 2015

• Financed by People’s Republic of China Regional Cooperation and Poverty Reduction Fund, the Republic of

Korea e-Asia and Knowledge Partnership Fund, and the Climate Change Fund (multi-donor)

• Develop power system scenarios 2020-2036 considering:

• Electricity markets in Northeast Asia

• Wind and solar potential in Mongolia

• Transmission interconnection development across the region

• Compare least cost expansion under isolated and interconnected scenarios

• Cost

• Emissions

Northeast Asia Power System Interconnection

Key Analysis under NAPSI TA

Scenario 3: 100 GW of renewable energy in Mongolia

NAPSI Step 1

Outcomes from NAPSI TA

Shared understanding of

NAPSI and its benefits

• Regional stakeholder

involvement

(SGC, Rosseti, and KEPCO)

• Conducted in coordination with

NEARPIC

• Presidents of PRC, Russian

Federation, Republic of Korea,

and Mongolia have all urged for

integrated grid development

Looking Ahead: Three Priority Areas

• Coordination, planning, administration

• To guide the NAPSI process forward

• Practical, lean, interim

• Implemented by Member States with the help of UN ESCAP

• South Gobi renewable energy base

• Institutional and Regulatory prerequisites of Gobi RE base for export

• Commercial agreements

• South Gobi—China interconnection

• Alignment with development of China—ROK interconnector

• Process towards a permanent NAPSI Authority

• Governments mobilized

• Feasibility study of a corporatized NAPSI Authority as a Joint Venture of the Member States

Interim

secretariat

Advancing

investments

Preparing for

multilateral

framework

Scope Considered for Future NAPSI TA

Wind and Solar in

South Gobi

• Optimize wind/solar

ratio

• Establish suitable

capacities, location

and development

stages

• Preliminary design

of HV collection

network

Mongolia-China

Interconnection

• Evaluate AC, DC,

and voltage options

• Design and routing

Business Case

• Assess landed

power costs in

IMAR, East China,

and Korea

• Principles of cost

recovery and tariffs

for generation and

transmission

Evaluating

Alternatives

• Assess landing

options

• Consider HV line to

Siberia for imports

of hydropower to

firm variable RE

ADB TA Process and Status

TA Concept Approval*

• Rationale

• Value

• Proposed scope

• Mongolian Ministry of Energy (MOE) as key implementing partner

TA Due Diligence

• Refine scope with MOE

• Regional stakeholder discussions (led by MOE)

• Draft TA Report and consultant TOR

Seek Fund

Allocation

• Application

• Consultation with relevant governments

• Fund commitment

TA Report Approval

• Formal peer review

• ADB management approval

• Target approvalAug 2021

01 02 03 04

Thank youhttps://www.adb.org/projects/48030-001/main#project-documents

PEOPLE'S REPUBLIC OF CHINA POVERTY REDUCTION AND REGIONAL

COOPERATION FUND

https://www.adb.org/projects/48030-001/main#project-documents