Archive for the ‘Dams/hydro’ Category

North Korean electricity supply and the coal mystery

Wednesday, February 17th, 2021

By: Benjamin Katzeff Silberstein

Kim Jong-un recently complained that North Korea’s electricity production is too low, and that goals and targets in the sector aren’t ambitious enough. On the face of it, this is puzzling. At least in the early days of “maximum pressure”, electricity supply was reportedly increasing and becoming cheaper. With less coal to export, more could be used (for cheaper) inside the country in coal-powered electrical power plants.

It seems, however, that a lack of spare parts and equipment for the country’s power plants is a major part of the problem. Moreover, the government is having a difficult time charging for electricity, since people tamper with the outdated watt-meters in their homes. Daily NK:

North Korea has apparently continued to illegally export coal even since 2017, when UN Security Council Resolution 2371 placed a complete ban on exports of North Korean coal. However, export totals have reportedly fallen compared to what they were prior to the sanctions.

Because of this, the authorities are calling for the use of “idle” coal in electricity production. However, even if they boost supplies of coal, actually increasing electricity production commensurate with that increase in supply will not be easy due to obsolete power generating equipment.

Acknowledging this problem, the authorities have also reportedly included in their electricity policy an order for the Cabinet to take responsibility for outdated equipment at the nation’s thermoelectric and hydroelectric power stations and immediately repair it.

Given that the party has issued an order to repair the equipment as quickly as possible, work on the repairs will likely begin. However, in the current situation with the border closed, the source told Daily NK it is uncertain whether North Korea can domestically produce or import the equipment it needs.

Moreover, it appears the authorities will strengthen the Cabinet’s monitoring of electricity production numbers. This is because the policy included a call for the Cabinet to start receiving quarterly reports on total electricity production – calculated based on total distribution by province.

(Source: Jang Seul Gi, “North Korean authorities issue new policy for electricity generation,” Daily NK, February 16th, 2021.)

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North Korea’s 2020 parliamentary session and the budget: the main points

Tuesday, April 14th, 2020

By: Benjamin Katzeff Silberstein

This past Sunday, the 12th of April, the North Korean Supreme People’s Assembly met at Mansudae Assembly Hall, the grand, majestic room where the assembly sits. Out of the six items on the SPA’s agenda, at least three – half – dealt in some shape or form with the economy, and arguably, some others could also fit into that category:

The agenda items of the Third Session of the 14th SPA of the DPRK were decided at the session:

1. On adoption of the law of the DPRK on recycling resources

2. On adoption of the law of the DPRK on tele-education

3. On adoption of the law of the DPRK on providing living conditions for discharged officers

4. On the work of the Cabinet of the DPRK for Juche 108 (2019) and its tasks of Juche 109 (2020)

5. On implementation of the state budget for Juche 108 (2019) and the state budget for Juche 109 (2020).

6. Organizational matter.

(Source: “Third Session of 14th SPA of DPRK Held,” Korean Central News Agency, April 13, 2020.)

I include the Cabinet report given the strong emphasis over the past years of the cabinet’s leading role in economic management. A separate KCNA-report from the same day, “Report on Work of DPRK Cabinet for Juche 108 (2019) and Its Tasks for Juche 109 (2020),” summarized this report of the cabinet’s work. I paste it here with some annotating comments. Yes, the whole first paragraph below is one sentence:

According to the report on the work of the Cabinet delivered at the Third Session of the 14th Supreme People’s Assembly(SPA) of the Democratic People’s Republic of Korea (DPRK), last year the Cabinet organized a drive of putting the overall national economy on a new higher stage with a main emphasis put on accomplishing the sustained economic development, ensuring the local production of equipment, raw and other materials and revitalizing production by boosting the capability of independent development of the country, true to the important tasks set forth by Supreme Leader Kim Jong Un in his report at the Fourth Plenary Meeting of the Seventh Central Committee of the Workers’ Party of Korea and in his historic policy speech at the First Session of the 14th SPA.

None of these phrases (“local production of equipment” etc) are new or surprising, and the most notable fact is perhaps the absence of anything unusual in such an unusual time (coronavirus, sanctions).

The report said that last year all sectors and units of the national economy carried out the gross yearly industrial production value at 108 percent, and ministries, national institutions, the city and county people’s committees and industrial establishments over-fulfilled their national economic plan.

The electrical power industrial sector carried out the hydraulic power generation plan at 103 percent and made sure that production was increased by properly carrying on the repair and readjustment of generating equipment.

Now this is interesting – repairing and readjusting could either mean a claim that the industry is doing fine even without imports of Chinese machine parts and the like, because it can simply repair and readjust what’s already there. Or, it’s a claim that in fact, despite sanctions, the country’s industries are able to replenish whatever equipment it needs to stay afloat.

The thermal power plants provided a guarantee for stabilizing the electric power production without relying on heavy oil.

The coal industrial field respectively showed 23 percent and 22 percent increases in the coal production and the supply of coal for thermal power generation over last year, and the large-scale coal mines rich in deposits and with favorable mining conditions provided a foundation to increase coal production.

In the field of the metallurgical industry the Kim Chaek Iron and Steel Complex has shown 22 percent, 2 percent and 37 percent increases in the production of pig iron, steel and rolled steel over last year. The chemical industry achieved large growth in the production of chemical fertilizer, carbide and caustic soda.

Of course, any claims of over-fulfillment of quotas and the like should be taken with a grain of salt, as such claims are classical in North Korean propaganda regardless of their foundation in reality (the genre was born in the Soviet Union). Still, trying out a charitable reading, there are theoretical ways in which claims over over-fulfillment could technically be true, particularly in these sectors. We know nothing about the revenue of these products, for example, and mines and factories could churn out production in great magnitudes but with questionable value when the products can’t be exported or sold at a profit at all. Because coal prices have dropped so much under sanctions, industry could well be powered at a lower cost, but the value of this is, again, questionable.

[…]

On the agricultural front the peak-year level was exceeded in the grain production even under unfavorable weather conditions.

A repetition of the claim of a bumper harvest last year, which remains highly unlikely, as I argued here.

A fishing campaign for supplying more fish to the people was launched in the fishery sector, and the fishing was put on a higher scientific level with the help of the updated aid system for detecting fishing ground.

Again, the sector may certainly produce and supply more, but its incomes will still be lower than they would be without sanctions.

The field of the land and environment protection turned the important projects including the Wonsan Kalma coastal tourist area and the Yangdok Hot Spring Resort into thick woodland and greenery and face-lifted all roads including Pyongyang-Hyangsan and Pyongyang-Wonsan Motorways.

A hint that investment continued in the tourism industry, and that the state expects this industry to blossom in the future, despite the currently dire situation. By extension, perhaps also a suggestion of expected solid economic ties and exchange with China.

The report contains a great deal of interesting detail, but in the interest of time, I’ll skip ahead to the most central parts (my own emphasis):

The report emphasized that all the achievements made last year clearly proved once again that as long as there is the wise guidance provided by the Party, we can live on our own and open up the road of our own development and prosperity no matter how desperately the enemies may try.

The report also said that serious mistakes were found in the work of the Cabinet last year.

They taught a serious lesson that if the officials in charge of providing economic guidance fail to fulfill their duty, it would be impossible to successfully attain the goals of economic construction set forth by the Party, the report said.

It clarified that we face heavy yet responsible tasks to unconditionally and thoroughly carry out the economic construction tasks set forth at the 5th Plenary Meeting of the 7th Central Committee of the WPK under the uplifted slogan “Let’s Break through Head-on All Barriers to Our Advance!”

It went on:

The Cabinet will put a main emphasis on organizing the economic work on the principle of subordinating everything to the health and safety of the people, conducting courageous head-on breakthrough in the spirit of achieving prosperity by dint of self-reliance, and fully meeting the needs for the national economy and for the people’s living by readjusting the economic foundation of the country and by fully tapping the production potential, in order to thoroughly carry out the tasks set forth in the joint resolution of the WPK Central Committee, State Affairs Commission and the Cabinet.

The Cabinet will rationally readjust the economic work system and order and boost its role as the organizer of the state economy.

It will put efforts into holding full control of the resources and fund sources of the state, and securing financial ability and execution power capable of managing and operating the country’s economy in a unified manner.

There are some key phrases below as well, but these two paragraphs are especially noteworthy. The message seems fairly clear that the state’s role in the economy needs to get stronger, and that while independent management methods may certainly be encouraged, the state is in charge. This message is familiar from Kim Jong-un’s December CC Plenum speech.

It will establish a strict discipline for the state development and use of the underground natural resources that are of strategic significance in the state economic development, and also take strong measures to protect and multiply aquatic resources.

It will bring about innovation in the work system, order and method on the principle of ensuring smooth transaction in the overall trade, and thoroughly guarantee the economic benefits of the country through the application of strict discipline and order in the import and export.

Perhaps both a reference to easing some rules and regulations for trade, while also combatting the rampant trade deficit?

[…]

The coal industrial sector will fully meet the demand for coal from several fields of the national economy including electricity, metal and chemical industries.

Note the absence here of any reference to coal exports.

[..]

The light industrial field will expand the variety of daily necessities and boost their quality. It, regarding the local production of raw and other materials as the lifeline, will rely on the locally available raw and other materials as much as possible for the production of consumer goods, put efforts into the development of local industry and contribute to the improvement of people’s standard of living.

Making consumer goods production and supply more local, and less reliant on imports, has been one of the chief goals through Kim Jong-un’s tenure. Judging by, for example, this recent report about consumer choice in kitchen items, it seems to be going quite well.

The Cabinet, corresponding to its position and duty as the economic command, will ensure the definite provision of unified operation and command for implementing the economic policies of the Party, and guarantee the meticulous economic organization and persevering practices and thus fulfill its responsibility and duty in glorifying this year marking the 75th founding anniversary of the Party as a year of victory to be specially recorded in the history of the country, the report stressed.

The report ends with one final emphasis on the Cabinet, and thus, the state, and not grassroots, independent actors, as the main holders of power in the economic realm. “The economic command” is about as clear of an expression as you could imagine. This doesn’t necessarily mean that the state will try to curb the market system anytime soon, but it will continue to subvert market forces into its own institutions where they can be more easily controlled and generate cash to the state.

The above is just a brief overview and quick read of the budget report. For more on the proportions and overall economic conditions that the report speaks of, check out Ruediger Frank’s recent 38 North article on the SPA session as a whole.

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Samsu hydropower plant fails to meet demand

Thursday, January 31st, 2019

Benjamin Katzeff Silberstein

The Samsu Power Plant, a hydroelectric power station located in Ryanggang Province, is failing to provide sufficient levels of electricity to nearby areas, leading to frustration among local residents, sources in North Korea report.

Kim Jong Un’s New Year’s Address placed an emphasis on hydroelectric power to resolve the country’s chronic electricity issues, but parts of the existing hydroelectric infrastructure are failing to perform. The outcome is fomenting concerns over whether the construction of new hydroelectric power plants will resolve the fundamental issues facing North Korea’s lack of electricity.

“The Samsu Power Plant has cracks where water is flowing out, and the plant cannot produce enough electricity,” said a Ryanggang Province-based source on Monday. “The construction of the power plant left almost the entire farming area in Samsu County submerged in water and locals were forcibly relocated to other areas. Residents are unhappy because the power plant isn’t producing much electricity.”

The power plant was built in 2007, but operations were halted in 2014 due to leaks in the dam. Repairs were made but the leaks are still a common occurrence five years later, while the plant is failing to produce much electricity at all.

Hyesan and the greater Ryanggang Province area continuously face electricity supply disruptions, which impact local companies and factories in the area.

“There’s not much electricity, so people are calling on the designers and builders of the dam to be punished via legal action,” said a separate source in Ryanggang Province.

“Locals are also showing dissent toward plans to build another mid-sized power plant in the area due to the failure of the Samsu Power Plant.”

The Samsu Power Plant has problems with its poor construction, but its location is also deemed by some to be suboptimal for producing hydroelectricity.

“The Ryanggang Province area is so cold in winter that the water freezes and this causes issues for electricity production at the dam,” said a defector from Ryanggang Province. “There’s not much rain either, so it’s doubtful whether the dam can produce much electricity, particularly considering the amount of money that was invested in it.”

Full article:
Samsu Power Plant fails to meet demand, frustrating local residents
Mun Dong Hui
Daily NK
2019-01-31

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Kim Jong-un’s 2018 new year address

Monday, January 1st, 2018

Below I have posted the economic section of Kim Jong-un’s 2018 new year speech in English and Korean:

Comrades,

동지들!

This year we will mark the 70th anniversary of the founding of the glorious Democratic People’s Republic of Korea. To mark the 70th anniversary of their state with splendour is of real significance for the great people, who have raised with dignity the status of their socialist country, the greatest patriotic legacy of the great Comrades Kim Il Sung and Kim Jong Il, to that of a strategic state recognized by the world. [Translation note: In the Korean version below, Kim Il-sung and Kim Jong-il are not mentioned by name, only by title]

올해에 우리는 영광스러운 조선민주주의인민공화국창건 일흔돐을 맞이하게 됩니다.위대한 수령님과 위대한 장군님의 최대의 애국유산인 사회주의 우리 국가를 세계가 공인하는 전략국가의 지위에 당당히 올려세운 위대한 인민이 자기 국가의 창건 일흔돐을 성대히 기념하게 되는것은 참으로 의의깊은 일입니다.

We should make constant innovations and continued progress until we win the final victory of the revolution by carrying on the tradition of heroic struggle and collective innovation which adorned the founding and course of development of Juche Korea. A revolutionary general offensive should be launched to achieve fresh victory on all fronts of building a powerful socialist country by taking the historic victory in the building of the DPRK’s nuclear forces as a springboard for fresh progress.

우리는 주체조선의 건국과 발전행로에 빛나는 영웅적투쟁과 집단적혁신의 전통을 이어 혁명의 최후승리를 이룩할 때까지 계속혁신,계속전진해나가야 합니다.공화국핵무력건설에서 이룩한 력사적승리를 새로운 발전의 도약대로 삼고 사회주의강국건설의 모든 전선에서 새로운 승리를 쟁취하기 위한 혁명적인 총공세를 벌려나가야 합니다.

“Let us launch a revolutionary general offensive to achieve fresh victory on all fronts of building a powerful socialist country!” This is the revolutionary slogan we should uphold. All officials, Party members and other working people should launch an all-people general offensive to frustrate the challenges of the hostile forces who are making last-ditch efforts and raise the overall strength of our Republic to a new stage of development as they brought about a great upsurge in socialist construction overcoming all difficulties through the great Chollima upswing after the war.

《혁명적인 총공세로 사회주의강국건설의 모든 전선에서 새로운 승리를 쟁취하자!》 이것이 우리가 들고나가야 할 혁명적구호입니다.모든 일군들과 당원들과 근로자들은 전후 천리마대고조로 난국을 뚫고 사회주의건설에서 일대 앙양을 일으킨것처럼 전인민적인 총공세를 벌려 최후발악하는 적대세력들의 도전을 짓부시고 공화국의 전반적국력을 새로운 발전단계에 올려세워야 합니다.

A breakthrough should be made in reenergizing the overall economic front this year, the third year of implementing the five-year strategy for national economic development.

국가경제발전 5개년전략수행의 세번째 해인 올해에 경제전선전반에서 활성화의 돌파구를 열어제껴야 하겠습니다.

The central task facing socialist economic construction this year is to enhance the independence and Juche character of the national economy and improve the people’s standard of living as required by the revolutionary counter-strategy put forward by the Second Plenary Meeting of the Seventh Central Committee of the Party.

올해 사회주의경제건설에서 나서는 중심과업은 당중앙위원회 제7기 제2차전원회의가 제시한 혁명적대응전략의 요구대로 인민경제의 자립성과 주체성을 강화하고 인민생활을 개선향상시키는것입니다.

We should concentrate all efforts on consolidating the independence and Juche character of the national economy.

인민경제의 자립성과 주체성을 강화하는데 총력을 집중하여야 합니다.

The electric-power industry should maintain and reinforce the self-supporting power generation bases, and direct a great deal of efforts to developing new power sources. A dynamic campaign should be conducted to drastically increase thermal power generation, and lower the loss of electric power and increase its production as much as possible by maintaining and reinforcing imperfect generating facilitates. Provinces should build power generation bases to suit their local features and put power generation at the existing medium and small-sized power stations on a normal footing to satisfy the needs of electric power for local industry by themselves. Alternated production should be organized scrupulously throughout the country, and a vigorous struggle waged against the practices of wasting electric power to make effective use of generated electric power.

전력공업부문에서는 자립적동력기지들을 정비보강하고 새로운 동력자원개발에 큰 힘을 넣어야 합니다.화력에 의한 전력생산을 결정적으로 늘이며 불비한 발전설비들을 정비보강하여 전력손실을 줄이고 최대한 증산하기 위한 투쟁을 힘있게 벌려야 합니다.도들에서 자기 지방의 특성에 맞는 전력생산기지들을 일떠세우며 이미 건설된 중소형수력발전소들에서 전력생산을 정상화하여 지방공업부문의 전력을 자체로 보장하도록 하여야 합니다.전국가적인 교차생산조직을 짜고들며 전력랑비현상과의 투쟁을 힘있게 벌려 생산된 전력을 효과적으로 리용하기 위한 된바람을 일으키도록 하여야 합니다.

The metallurgical industry should further improve the Juche-oriented iron- and steel-making technologies, increase the iron production capacity and drastically raise the quality of metallic materials in order to satisfy the needs of the national economy for iron and steel. It is necessary to ensure a preferential, planned and timely supply of electricity, concentrated iron ore, anthracite, lignite, freight wagons, locomotives and funds for the metallurgical industry. By doing so, we can fulfil next year’s iron and steel production plans and make the industry Juche-oriented without fail.

금속공업부문에서는 주체적인 제철,제강기술을 더욱 완성하고 철생산능력을 확장하며 금속재료의 질을 결정적으로 높여 인민경제의 철강재수요를 충족시켜야 합니다.금속공업부문에 필요한 전력,철정광,무연탄,갈탄,화차와 기관차,자금을 다른 부문에 앞세워 계획대로 어김없이 보장하여 다음해 철강재생산목표를 무조건 수행하며 금속공업의 주체화를 기어이 완성하도록 하여야 하겠습니다.

The chemical industry should step up the establishment of the C1 chemical industry, push the projects for catalyst production base and phosphatic fertilizer factory as scheduled, and renovate and perfect the sodium carbonate production line whose starting material is glauberite.

화학공업부문에서 탄소하나화학공업창설을 다그치고 촉매생산기지와 린비료공장건설을 계획대로 추진하며 회망초를 출발원료로 하는 탄산소다생산공정을 개건완비하여야 합니다.

The machine-building industry should modernize the Kumsong Tractor Factory, Sungri Motor Complex and other factories to develop and produce world-level machinery in our style.

기계공업부문에서는 금성뜨락또르공장과 승리자동차련합기업소를 비롯한 기계공장들을 현대화하고 세계적수준의 기계제품들을 우리 식으로 개발생산하여야 합니다.

The coal and mineral production and rail transport sectors should make concerted efforts to make the country’s self-reliant economic foundations prove their effectiveness.

나라의 자립적경제토대가 은을 낼수 있게 석탄과 광물생산,철도수송에서 련대적혁신을 일으켜야 합니다.

Notably, the rail transport sector should make the best use of the existing transport capacity by making transport organization and control more scientific and rational, and maintain discipline and order in the railways as rigid as in the army, so as to ensure an accident-free, on-schedule rail traffic.

특히 철도운수부문에서 수송조직과 지휘를 과학화,합리화하여 현존수송능력을 최대한 효과있게 리용하며 철도에 군대와 같은 강한 규률과 질서를 세워 렬차의 무사고정시운행을 보장하도록 하여야 합니다.

A turn should be brought about this year in improving the people’s standard of living.

올해에 인민생활향상에서 전환을 가져와야 합니다.

Light-industry factories need to transform their equipment and production lines into labour- and electricity-saving ones and produce and supply more diversified and quality consumer goods with domestic raw and other materials, and provinces, cities and counties should develop the local economy in a characteristic way by relying on their own raw material resources.

경공업공장들의 설비와 생산공정을 로력절약형,전기절약형으로 개조하고 국내원료와 자재로 다양하고 질좋은 소비품들을 더 많이 생산공급하며 도,시,군들에서 자체의 원료원천에 의거하여 지방경제를 특색있게 발전시켜야 합니다.

The agricultural and fishing fronts should effect an upswing. We should introduce seeds of superior strains, high-yield farming methods and high-performance farm machines on an extensive scale, do farming scientifically and technologically so as to fulfil the cereals production plan without fail, and boost the production of livestock products, fruits, greenhouse vegetables and mushrooms. We should enhance our ship building and repair capacities, launch scientific fishing campaigns, and reenergize aquatic farming.

농업과 수산전선에서 앙양을 일으켜야 하겠습니다.우량종자와 다수확농법,능률적인 농기계들을 대대적으로 받아들이고 농사를 과학기술적으로 지어 알곡생산목표를 반드시 점령하며 축산물과 과일,온실남새와 버섯생산을 늘여야 합니다.배무이와 배수리능력을 높이고 과학적인 어로전을 전개하며 양어와 양식을 활성화하여야 하겠습니다.

This year the service personnel and people should join efforts to complete the construction of the Wonsan-Kalma coastal tourist area in the shortest period of time, push ahead with major construction projects including the renovation of Samjiyon County, the construction of the Tanchon Power Station and the second-stage waterway project of South Hwanghae Province, and channel steady efforts into the construction of houses.

올해에 군민이 힘을 합쳐 원산갈마해안관광지구건설을 최단기간내에 완공하고 삼지연군꾸리기와 단천발전소건설,황해남도물길 2단계 공사를 비롯한 중요대상건설을 다그치며 살림집건설에 계속 힘을 넣어야 합니다.

Building on the success we achieved in the forest restoration campaign, we should properly protect and manage the forests that have already been created, improve the technical conditions of roads, conduct river improvement on a regular basis, and protect environment in a scientific and responsible manner.

산림복구전투성과를 더욱 확대하면서 이미 조성된 산림에 대한 보호관리를 잘하는것과 함께 도로의 기술상태를 개선하고 강하천정리를 정상화하며 환경보호사업을 과학적으로,책임적으로 하여야 합니다.

Every sector and every unit of the national economy should enlist their own technical forces and economic potential to the maximum and launch a dynamic struggle to increase production and practise economy, so as to create a greater amount of material wealth.

인민경제 모든 부문과 단위들에서 자체의 기술력량과 경제적잠재력을 총동원하고 증산절약투쟁을 힘있게 벌려 더 많은 물질적재부를 창조하여야 합니다.

A shortcut to developing the self-sufficient economy is to give precedence to science and technology and make innovations in economic planning and guidance.

자립경제발전의 지름길은 과학기술을 앞세우고 경제작전과 지휘를 혁신하는데 있습니다.

The scientific research sector should solve on a preferential basis the scientific and technological problems arising in establishing Juche-oriented production lines of our own style, ensuring domestic production of raw and other materials and equipment, and perfecting the structure of the self-supporting economy. Every sector and every unit of the national economy should make a contribution to achieving production growth by intensifying the dissemination of science and technology and waging a brisk technological innovation drive.

과학연구부문에서는 우리 식의 주체적인 생산공정들을 확립하고 원료와 자재,설비를 국산화하며 자립적경제구조를 완비하는데서 제기되는 과학기술적문제들을 우선적으로 풀어나가야 합니다.인민경제 모든 부문과 단위들에서 과학기술보급사업을 강화하며 기술혁신운동을 활발히 벌려 생산장성에 이바지하여야 하겠습니다.

The Cabinet and other economic guidance organs should work out a realistic operational plan to carry out the national economic plan for this year and push forward the work for its implementation responsibly and persistently. Positive measures should be taken by the state to ensure that the socialist system of responsible business operation proves its worth in factories, enterprises and cooperative organizations.

내각을 비롯한 경제지도기관들은 올해 인민경제계획을 수행하기 위한 작전안을 현실성있게 세우며 그 집행을 위한 사업을 책임적으로 완강하게 내밀어야 합니다.국가적으로 사회주의기업책임관리제가 공장,기업소,협동단체들에서 실지 은을 낼수 있도록 적극적인 대책을 세워야 합니다.

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Uptick in North Korea’s Renewable Energy Production

Thursday, November 17th, 2016

Institute for Far Eastern Studies (IFES)

In North Korea, there are now three solar-powered ferries that sail the Taedong River: the Okryu 1, the Okryu 2, and the Okryu 3.

The North Korean government’s wire service, the Korean Central News Agency (KCNA), reported on November 4, 2016: “The ferries sail between Kim Il Sung Square and the Tower of the Juche Idea, guaranteeing that citizens can travel during the rush hour. . . . These solar powered-ferries provide ferry services both to workers and for guests from home and abroad in the form of tourist and chartered services.”

According to KCNA, the three ferries were built at Ryongnam Shipyard, each weigh 45 tons, have a maximum speed of 6 knots, and can take up to 50–60 passengers.

According to Yun Hyok, the captain of Okryu 1, “the ferry is powered by the energy of sun light . . . the driving system was created with the energy and skill of our engineers. The ship can run for around 8 hours when fully charged.”

Since the 1990s, North Korea has expressed determination to achieve energy independence, with Kim Jong Un pointing to resolving electricity difficulties as being a priority back in 2011. Subsequently, in 2013, a law was introduced to encourage research and the production of renewable energy, and at this year’s Seventh Party Congress it was announced that two hydropower stations had been opened. The importance of energy independence was also emphasized at the congress. It has also been confirmed that North Korea has been pursuing a long-term plan to raise the amount of energy produced from renewable sources to 5 million kW. In order to achieve this target, the plan envisages by 2044 that wind power will provide 15 percent of total energy demand.

This plan was discovered through internal materials on display at the Natural Energy Research Centre, formed in November 2014 as a result of an order issued by Kim Jong Un to develop energy resources that do not pollute the environment.

An overseas visitor to the Natural Energy Research Centre said that “the Centre in Pyongyang has a diagram of the 30-year plan to develop renewable energy with the title ‘The dream and ideal of Natural Energy Science development’. . . . The materials there also indicate plans to train specialists in the science of ‘natural energy’ development, and plans related to the development and trial sites for wind power, geothermal energy, and solar thermal energy.”

Such plans mean that North Korea plans to develop renewable energy, in addition to building hydroelectric power plants and/or using Chinese/Russian power to deal with energy shortages. In other words, they intend to attempt to reduce their consumption of fossil fuels and develop renewable energy. Since Kim Jong Un’s rise to power, a variety of measures have been put in place and investments made to broaden the use of renewable energy.

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New power plants operational before KWP congress

Wednesday, May 11th, 2016

The Paektusan Hero Youth Power Station No. 3

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Pictured above (Yonhap): The Paektusan Hero Youth Power Station No. 3

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Pictured Above (Google Earth): The dam is too recent to appear on Google Earth imagery as of publication, but here are the locations of Paektusan Hero Youth Power Stations Nos 1-3

According to KCNA (2016-5-21):

Paektusan Hero Youth Power Stations in Full Operation

The Paektusan Hero Youth Power stations, built in the Democratic People’s Republic of Korea as a symbol of youth power, are now running at full capacity to supply electricity to the area of Mt. Paektu.

Kim Hyong Dok, chairman of the Samjiyon County, Ryanggang Province, People’s Committee, told KCNA:

Now is the dry season, but the stations have generated much electricity for industrial establishments, public cultural establishments and residential quarters in the county.

They are greatly helpful to the county’s economic development and the improvement of its population’s livelihood.

Academician, Prof. and Dr. So Pyong Hwa of Hamhung University of Hydraulic Engineering, said:

Electricity from the stations is also supplied to its neighboring Pochon and Paekam counties and Hyesan City.

It is very gratifying to see the safe conditions of hydraulic structures and generators at the stations. And it is better to read the mentality of their employees resolved to contribute to the province’s economic development and the improvement of its inhabitants’ livelihood with increased electricity production.

According to KCNA (2016-3-31):

Dam Project of Paektusan Hero Youth Power Station No. 3 Completed

Members of the youth shock brigade of the DPRK finished the dam project of the Paektusan Hero Youth Power Station No. 3 on March 31.

Members of the shock brigade and other builders vied with each other to mount the dam to greet the historic moment of the completion of the dam project.
At 10 a.m. they made a report on the completion of the dam project to supreme leader Kim Jong Un, looking up to the sky above Pyongyang.

The project started on January 13.

The completion of the dam project in a matter of less than three months represents a heroic epic which could be created only by the heroes of the youth power who grew up under the care of the peerlessly great men of Mt Paektu and a miracle they worked as young people of heroic Korea by bringing about a great leap forward by doing 10 years’ work just in one year.

Kim Jong-un visited on April 23.

Yonhap reports that its hasty construction meant the dam was not properly constructed, and it is already leaking.

The Paektusan Hero Youth Power Stations 1 & 2 were formally known as the Paektusan Songun Youth Power Stations. The Paektusan Songun Power Station No. 2 was submitted to the UNFCCC program.

It is still too early to tell, but it appears that power from these three plants will be going to Samjiyon and maybe Hyesan.

Wonsan Army-People Power Station

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Above (Google Earth): The wonsan Army-People Power Station Dam, canal, and two hydro power stations.

Wonsan-army-people-Rosong-Sinmun-2016-05-01

Above (Rodong Sinmun)

According to Rodong Sinmun (2016-5-2):

Large-scale Wonsan Army-People Power Station has been built in Kangwon Province.

The power station has provided a foundation for generating the electricity necessary for developing the economy and improving the living standard of the people and solving the issues of household water, industrial water and irrigation water in the province.

An inaugural ceremony of the power station took place on April 29.

Present at the ceremony were Pak Pong Ju, O Su Yong, officials concerned, builders and working people.

A message of thanks from the Central Committee of the Workers’ Party of Korea (WPK) was delivered.

The message appreciated the builders of the power station and supporters for building another monumental edifice representing the era of the Workers’ Party by dint of self-development and self-reliance as a laudable present to the Seventh Congress of the WPK.

Pak Jong Nam, chief secretary of the Kangwon Provincial Committee of the WPK, in a speech called upon the officials, working people and builders of the province to create a fresh Mallima speed in their worksites in the same spirit as was displayed in the construction of the power station.

At the end of the ceremony the participants went round the power station.

This project was submitted to the UNFCCC for consideration.

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Progress in North Korea’s renewable energy production

Monday, February 15th, 2016

Institute for Far Eastern Studies (IFES)

North Korea has announced long-term plans to raise energy production up to 5 million kilowatts (kW) in 30 years utilizing a variety of renewable energy. The plan includes to secure 15 percent of necessary electricity through wind power and to raise renewable energy generation capacity up to 5 million kW by 2044.

The production goal of 5 million kW is an ambitious plan considering North Korea’s total output of the recently constructed Chongchon power plant which took three years to complete and has a total output of 430,000 kW. This plan was revealed by the internal resources of the ‘Natural Energy Institute’ which was established in November 2014 to develop pollution-free energy resources under the instructions of Kim Jong Un.

This renewable energy plan appears as one part of Pyongyang’s active exploration into the development of renewable energy to help resolve the country’s power shortages, in addition to the current measures of adopting energy resources from Russia and China and construction of large hydroelectric power plants. The plan entails measures to reduce the consumption of fossil fuels such as coal and oil while expanding development of renewable energy resources.

North Korea has promoted various investment and measures to expand the use of renewable energy since Kim Jong Un came to power. First, North Korea enacted the ‘Renewable Energy Law’ to provide legal guarantee for the development and use of renewable energy in August 2013. The law aims to “revitalize the renewable energy industry to continuously improve the economy and to protect the environment of the homeland.”

The Renewable Energy Law consists of six chapters and 46 provisions. The law includes the definition, purpose and basic principle for research, development and use, as well as planning, promotion, and strengthening of material and technical basis of renewable energy. The law also stipulates legal requirements necessary for guidance and control of the renewable energy sector. The law defines renewable energy as energy sources with reduced environmental impact such as solar, wind, geothermal, biomass, and marine energy.

Second, North Korea seems to be making considerable progress in developing its own industry-specific technology. The Green Energy Joint Venture company displayed solar panels at the Pyongyang Autumn International Trade Fair held last year and at the 15th May 21 Architectural Festival, North Korea released the design plans of green homes that utilized solar, wind, and geothermal energy sources. In addition, solar energy-powered buses and small passenger ships were unveiled at the festival.

The Natural Energy Research Institute of the National Academy of Sciences was established in 2013 as a specialized research institute to develop technology for alternative energy resources such as wind, geothermal, solar, biomass, methane hydrate and hydrogen. In 2014, Natural Energy Research Institute Director Lee Myong Son revealed that, “among the wind turbine currently in use, 71.4 percent are in the 300w range while 28.6 percent are above that range,” indicating that most products used in solar and wind power generation are domestically produced.

In addition, North Korea established the Kwangmyong LED and Solar Cell Factory to domestically produce solar energy products. Since the enactment of the ‘Energy Management Law’ in 1998, North Korea has placed the development of wind, solar, tidal, biomass, fuel cell power as a top research priority and appears to have made considerable advancement over the years.

 

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The economy in Kim Jong-un’s New Year’s address: what’s there and what isn’t

Sunday, January 10th, 2016

By Benjamin Katzeff Silberstein

The supposed hydrogen bomb test has come to dominate the news on North Korea over the past few days, for obvious reasons. Kim Jong-un’s New Year’s Address has naturally ended up in the shadow of the nuclear test, but it is worth going back for a closer look. Overall, it is a speech that appears to contain few major announcements or indications. Perhaps more surprising than what themes are there, are the themes that are absent.

Stephan Haggard pretty much sums up how economic matters are treated in the speech, as they often are in North Korean rhetoric on economics: “As usual, the economic components of the speech rely more on exhortation than any clear policy message, confusing results with the means of achieving them.”

That is, in much of the speech, Kim simply talks about what will be achieved but leaves out how to get thereTake the following paragraph, for example (my emphasis added):

The Cabinet and other state and economic organs should decisively improve their economic planning and guidance. Leading economic officials should fully equip themselves with Party policy, work out plans of the economic work in an innovative way and give a strong push to it on the principle of developing all the sectors at an exponential speed by relying on the inexhaustible creative strength of the working people and by dint of modern science and technology. They should accurately identify the main link in the whole chain of economic development and concentrate efforts on it while revitalizing the overall economy, especially when the conditions are not favourable and many difficulties arise. They should be proactive in organizing and launching the work of establishing on a full scale our style of economic management method which embodies the Juche idea, thus giving full play to its advantages and vitality.

And:

All the sectors of the national economy should set ambitious goals and maintain regular production by tapping every possible internal reserve and potentiality.

Those who are more savvy at reading between the lines and interpreting rhetorical symbolisms can perhaps draw out meaningful signals from quotes such as these. But at face-value, they seem to give little indication of policy changes. Or of any policy at all, for that matter.

What are the areas that Kim hold up as economic priorities, then? Stephan Haggard points out heavy industry as one such theme. It is also the one mentioned first in the speech. Infrastructure and power supply also features fairly prominently (and is mentioned early on), with specific references to several power station construction projects. Kim also mentions IT and the “knowledge-driven economy” (emphasis added):

Our working class, scientists and technicians, true to the instructions of the great leaders, made a big stride in making the metallurgical industry Juche-based, built model, standard factories of the era of the knowledge-driven economy in various parts of the country and put production lines on a modern and IT footing, thus opening a new road of advance for developing the overall economy and improving the people’s standard of living.

Presumably, this is what North Korean media mean when they talk about the H-bomb test as an economic boost: that such capabilities show North Korea’s strength as a knowledge-based economy.

Domestic production capabilities are highlighted all the way through. This theme isn’t new. Kim Jong-un has often emphasized the importance of goods diversity and local production. This lies well in line with the basic economic tenets of the Juche doctrine. Here is one example of how domestic production capacity is highlighted in the speech (emphasis added):

The flames of the campaign to implement the Party’s ideas and defend its policies have unfolded a proud reality of our indigenous plane flying in the sky and our indigenous subway train running under the ground, and rich fish and fruit harvests were gathered, their socialist flavour bringing pleasure to the people.

One theme that features relatively prominently is construction. In one paragraph, Kim even states that “Construction is a yardstick and visual evidence for the strength of a country and the quality of its civilization”, and continues to urge the country to build more:

The construction sector should launch a general offensive to implement the Party’s construction policy and grand plan. By doing so, it should build important production facilities, educational and cultural institutions and dwelling houses on the highest possible level and at the fastest possible speed, so that they serve as standards and models of the times. In this way it can make sure that the great heyday of construction continues without letup.

Perhaps this is an indication that the building boom in Pyongyang of the past few years will continue. Priorities such as this one primarily benefit those political classes that live in Pyongyang. With few exceptions, as far as I’m aware, most other cities have seen little of the construction boom that the capital city has experienced.

There is also a reference to the coal mining industry. On the one hand, it may be interesting because North Korea’s main export destination for coal is China, and these trade flows have been volatile over the years, and there have been signs that North Korea isn’t getting a good deal in this trade. But on the other hand, this may be reading too much into one small reference in the speech (emphasis added):

In order to achieve breakthroughs for a turning point in building an economic giant the electric-power, coal-mining and metallurgical industries and the rail transport sector should advance dynamically in the vanguard of the general offensive.

Later, coal mining appears only in reference to the domestic power supply (emphasis added):

All sectors and all units should wage a vigorous campaign to economize on electricity and make effective use of it. The sector of coal-mining industry should raise the fierce flames of an upsurge in production to ensure enough supply of coal for the thermal power stations and several sectors of the national economy.

There are two themes that are surprisingly absent. One is agriculture. Agricultural policy is barely present, and when it is, management methods aren’t mentioned. For example:

The agricultural sector should actively adopt superior strains and scientific farming methods, speed up the comprehensive mechanization of the rural economy and take strict measures for each farming process, so as to carry out the cereals production plan without fail.

This is a little surprising, because regime sources have claimed that agricultural production has been boosted during the year, and management reforms with greater incentives for farmers have been touted as the reason. (A close look at the numbers indicates that agricultural production has declined slightly during 2015, moving it towards the average of the 2000s.) If agricultural reforms have indeed been a central tenet of Kim Jong-un’s economic policies, one could at least have expected a reference to these reforms in the speech.

The second theme that is strangely absent is forestry policy. It is only mentioned in one sentence:

The whole Party, the entire army and all the people should buckle down to the campaign to restore the forests of the country.

During the past year, Kim Jong-un has highlighted forestry policy as a key area. He has talked openly and frankly about the role of tree felling in causing floods and subsequent food shortages, and promoted reforestation, albeit not in a way that is likely to work very well. North Korean media has singled out tree nurseries for not doing their job properly. In sum, forestry has been relatively high on the agenda, but the topic still barely made it into the speech.

All in all, from an economic policy standpoint, this year’s New Year’s Address did not contain any major bombshells. The fact that economic issues appear right after the section on the upcoming party congress may be a hint that such issues will be high on the agenda, but then again, it might not mean much at all. Moreover, it is unclear how much can really read into the New Year’s Address for hints about regime policies and priorities. After all, the speech contained virtually no allusions to the H-bomb test that was to come only days later.

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North Korea’s self-assessment of its economy in 2015

Tuesday, December 29th, 2015

Institute for Far Eastern Studies (IFES)

The Choson Sinbo, a pro-North Korea newspaper of the General Association of Korean Residents in Japan, released an article on December 18 that evaluated North Korea in 2015 and commended it for “achieving a remarkable leap that reached 10 years achievement in just one year.”

The newspaper commented that many monumental works had been created in 2015 that changed the country. The newspaper also introduced the recently completed constructions of Mt. Paekdu Hero Youth Power Station, multi-tier power stations on the Chongchon River, Future Science Street, Mangyongdae School Children’s Palace, Pyongyang Nursing Home, Mansudae Fountain Park, and “Mujigae” ferry on the Taedong River.

In addition, the Sonbong region in Rason City which had suffered severe flood damages in August was reported to have achieved great changes in only 30 days, turning the village into a “socialist fairyland.”

The newspaper added that “this year, Choson [North Korea] embarked on the advancement of science and technology and emphasized ideology, weapons, and technology as three pillars for constructing great and powerful socialist nation.” It also stated that “in accordance with the party’s policy to turn all people into science and technology talents, institutions, factories, enterprises, and cooperative farms across the country were equipped with over 2,000 science and technology resource rooms.”

A corn processing plant and a catfish farm were discussed as examples: “Pyongyang corn processing plant has achieved automation, and dust and bacteria-free conditions in the entire production process, from raw material to the packaging stage”; “Pyongyang Catfish Farm established the comprehensive production system that integrated intellectualization, informatization, and magnetization in the factory.”

In particular, the newspaper mentioned North Korean leader Kim Jong Un’s onsite field guidance visit to the Pyongyang Catfish Farm where he emphasized the modernization of farm, noting that “the modernization of the catfish plant did not simply bring in power and technology from outside but is based on our independent technology and facilities.”

Moreover, the newspaper said, “This year, measures were devised to improve the dietary level of the people through focusing on advancing livestock, agricultural, and marine products.” It further announced that “Vegetable Science Institute of the Academy of Agricultural Science succeeded in cultivation methods of producing 300 tons per chongbo (1 chongbo = 9,917 square meters) through vigorous research that concentrated on scientification of greenhouse vegetable cultivation.”

In addition, the newspaper added that “scientification” was promoted in other sectors including education, sports, and culture.

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Some Huichon Power Stations go operational on Chongchon River

Tuesday, November 10th, 2015

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Pictured Above (Google Earth): Huichon Power Station No. 9, site of the opening ceremony

According to Rodong Sinmun (2015-11-9):

Multi-tier power stations on the River Chongchon went operational.

The stations are the labor gifts the Korean people presented to the 70th anniversary of the founding of the Workers’ Party of Korea (WPK) with loyalty.

The 10 multi-tier power stations in the 80 km-long section of the River Chongchon would contribute to the building of an economic power and improvement of people’s living standard.

An inaugural ceremony of the power stations was held at Huichon Power Station No. 9 on November 17.

Present there were leading officials of the party and state, the ministers of electric power industry, metal industry, railways, construction and building-materials industry, electronics industry and machine-building industry, the president of the State Academy of Sciences, the chief secretaries of the provincial committees of the WPK, officials and members of shock brigades who took part in the construction of the power stations and others.

A congratulatory message from the Central Committee of the WPK to the builders, officials and helpers who performed shinning labor feats in building the power stations was conveyed by Pak Pong Ju, member of the Political Bureau of the C.C., the WPK and premier of the DPRK Cabinet.

O Su Yong, member of the Political Bureau and secretary of the C.C., the WPK, said in his inaugural speech that the completion of the 10 multi-tier power stations on the River Chongchon in a short span of time as monumental structures in the era of Marshal Kim Jong Un is of great significance in demonstrating the rapid development of Songun Korea.

The speaker called upon the builders of power stations on the River Chongchon to demonstrate their heroic stamina once again in the all-out drive for presenting a labor gift to the 7th Congress of the WPK with loyalty.

UPDATE: Note that the article does not claim that ALL of the hydro power plants on the Chongchon River are operational. In the March 2016 Korea pictorial magazine, did a feature on Huichon Power Stations Nos. 3, 4, 8, 9, and 11. 1 and 2 were previously constructed. There are construction sites available on Google Earth for plants 5,6,7, and 10, but I am not sure about specific names for each. I am also unsure if the Hyangsan Army-People Youth Power Station near Hyangsan is being renamed and included in the Chongchon River plants.

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