Russia and China are discussing the possibility of Russia increasing its electricity exports to China, but taking into account the growing power demand in Russia's Far East, the Russian Energy Ministry has said.
A Russian-Chinese working group for cooperation on electricity and renewable energy met on Wednesday and discussed the idea of Russia boosting its power supply to China, as reported by Russian news agency Interfax on Thursday.
Russia and China have strengthened energy ties in recent years, especially after the Russian invasion of Ukraine and the embargoes on most of Russia's energy exports, including oil and coal, to Western countries.
Earlier this decade, Russia raised its electricity exports to China to help it get over a power crunch. In October 2021, for example, Russia doubled its electricity exports to China as Asia's largest economy was grappling with power shortages that led to power rationing.
However, in August last year, Russia reduced electricity exports to China along the Amur-Heihe power line to 100-200 MW from 600 MW due to a shortage in the energy system of Russia's Far East. State power company Inter RAO, the sole operator for Russian electricity exports and imports, has estimated that Russian electricity exports to China slumped by 75% in January and February 2024 compared to the same period of 2023.
Last year, Inter RAO's supply to China fell to 3.1 billion kWh from a record 4.6 billion kWh in 2022, TASS news agency reports, noting that Russia still has some restrictions on power exports to China. Inter RAO's Executive Board member Alexandra Panina has said that deliveries to China might decrease to 1 billion kWh, according to TASS.
Despite Russia's touted "friendship without limits" with China, each of the two countries is seeking financial benefits in the deals with the other. One notable example is the lack of progress on a massive new energy project to transport Russian pipeline gas to China. Beijing is not committing to a deal for a new natural gas pipeline unless it's favorable for the world's second-largest economy.
By Charles Kennedy for Oilprice.com
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