PREFACE

The Belt and Road Initiative is China’s proposal to participate in openness and

cooperation worldwide, improve the global economic governance system, promote

global common development and prosperity, and build a community of shared future for

mankind. The Belt and Road Initiative is conducive to integrating advantages of various

countries in production capacity, technology, capital, resource and market, promoting

mutually beneficial cooperation among countries, and carrying out regional cooperation

with a broader scope and at a higher and deeper level, in an effort to provide new

impetus for global economic growth.

Energy is an important part of the Belt and Road Initiative, as it is an important material

basis for the development of human society and is vital to the national economy and

people’s livelihood of all countries. As Chinese President Xi Jinping stressed in his

keynote speech at the Belt and Road Forum for International Cooperation in May 2017,

we need to seize opportunities presented by the new round of change in energy mix

and the revolution in energy technologies to develop global energy interconnection and

achieve low-carbon development. Global Energy Interconnection (or GEI) is an energy

infrastructure platform for large-scale development and use of clean energy worldwide.

Building GEI will unleash the development potential of different countries and help make

a road full of prosperity.

To build GEI and implement the Belt and Road Initiative, Global Energy Interconnection

Development and Cooperation Organization (GEIDCO) developed the Belt and Road

Energy Interconnection Research Report (referred to as “Report”). The Report conducts

researches on six economic corridors including the New Eurasian Land Bridge, China-

Mongolia-Russia, China-Central Asia-West Asia, Bangladesh-China-India-Myanmar,

China-Pakistan, and China-Indochina Peninsula, and three key passages of the

maritime silk road including Northeast Asia, South Pacific, and Indian Ocean-Africa-

Mediterranean Sea (hereinafter referred to as the “6+3” Channels). The Report focuses

on the development foundation, development framework, and interconnection plan of

each channel, proposes key projects of the Belt and Road Energy Interconnection, and

analyzes the economic, social, environmental and political benefits from building the Belt

and Road Energy Interconnection.

PREFACE

The construction of the Belt and Road Energy Interconnection is of great significance to

the implementation of the Belt and Road Initiative. Energy cooperation is an important

part of building economic corridors, as most countries and regions along the Belt and

Road are rich in energy resources. The Belt and Road Energy Interconnection focuses on

the clean energy development and electric power connectivity projects construction, and

push forward step by step to get through the bottleneck of energy connectivity, promote

common economic development, and provide new framework and plans for the energy

and electric power development and cooperation of countries along the route.

The construction of the Belt and Road Energy Interconnection requires joint efforts of

governments, enterprises, organizations and individuals of relevant countries. GEIDCO

calls on the international community and hopes that all parties can actively join in the

construction of this platform that benefits all, in a bid to secure a better future by pooling

global wisdom and strength.

CONTENTS

PREFACE

Energy Cooperation under the Belt and Road Initiative.............................................. 06

1.1 The Belt and Road Initiative .................................................................................. 07

1.2 Energy Cooperation.............................................................................................. 11

1

GEI Promotes the Belt and Road Construction............................................................ 14

2.1 GEI Development Strategy.................................................................................... 15

2.2 GEI Promotes Sustainable Development of the World........................................... 16

2.3 GEI Promotes the Belt and Road Construction..................................................... 18

2

The Belt and Road Power Grid Interconnection Plan .................................................. 20

3.1 New Eurasian Land Bridge Channel...................................................................... 21

3.2 China-Mongolia-Russia Channel and Northeast Asia Channel .............................. 26

3.3 China-Central Asia-West Asia Channel ................................................................. 31

3.4 Bangladesh-China-India-Myanmar Channel.......................................................... 36

3.5 China-Pakistan Channel ....................................................................................... 41

3.6 China-Indian Ocean-Africa- Mediterranean Sea Channel ...................................... 46

3.7 China-Indochina Peninsula Channel and South Pacific Channel............................ 52

3

4

Key Interconnection Projects......................................................................................... 57

4.1 New Eurasian Land Bridge Channel...................................................................... 58

4.2 China-Mongolia-Russia Channel and Northeast Asia Channel .............................. 59

4.3 China-Central Asia-West Asia Channel ................................................................. 60

CONTENTS

4.4 Bangladesh-China-India-Myanmar Channel.......................................................... 61

4.5 China-Pakistan Channel ....................................................................................... 62

4.6 China-Indian Ocean-Africa-Mediterranean Sea Channel ....................................... 63

4.7 China-Indochina Peninsula Channel and South Pacific Channel............................ 65

Comprehensive Value of the Belt and Road Energy Interconnection........................ 67

5.1 Economic Value.................................................................................................... 68

5.2 Social Value.......................................................................................................... 70

5.3 Environmental Value ............................................................................................. 71

5.4 Political Value ....................................................................................................... 72

5

1

Energy Cooperation

under the Belt and

Road Initiative

Energy Cooperation under the Belt and Road Initiative

1.1 The Belt and Road Initiative

1.1.1 Background

In 2013, Chinese President Xi Jinping proposed the Belt and Road Initiative, which have

attracted close attention and positive response from the international community. The

core of the Belt and Road Initiative is that all parties should, in the principle of common

consultation, joint contribution and shared benefits, make joint efforts to address the

global economy development challenges, seek new opportunities and drivers for

development, achieve advantage complementary and mutual benefits, and move forward

towards a community of shared future for mankind. The Belt and Road Initiative is not

only a Chinese program for maintaining an open world economic system, and achieve

diversified, independent, balanced, and sustainable development, but also a Chinese

proposal intended to advance regional cooperation, strengthen communications between

different civilizations, and safeguard world peace. It also shows that China, as the

largest developing country and the world’s second largest economy, shoulders its wider

responsibilities in promoting international economic governance toward a fair, just and

rational system.

07

Energy Cooperation under the Belt and Road Initiative

The vision of the Belt and Road Initiative is becoming a reality and bearing rich fruit.

In 2018, more than 60 countries and international organizations signed

cooperation documents with China under the Belt and Road Initiative, bringing

the total number of signed documents to nearly 170. With the support of all

parties, the Belt and Road Initiative has been incorporated into the outcome

documents of the United Nations, the Forum on China-Africa Cooperation, the

Shanghai Cooperation Organization, the Asia-Europe Meeting and other important

international mechanisms.

Policy

coordination

has been

deepened

Steady progress has been made in a number of landmark projects, including the

China-Pakistan Economic Corridor, the China-Laos railway, the China-Thailand

railway, the Hungary-Serbia railway and the Jakarta-Bandung high-speed railway.

Today, a composite infrastructure network is taking shape, based on the land-

sea-air transportation routes and information expressway and supported by major

railway, port and pipeline projects.

Facilities

connectivity

has been

enhanced

China has established more than 80 overseas economic and trade cooperation

zones with countries along the Belt and Road. China-Belarus Industrial Park

has become a model of bilateral cooperation. A large number of cooperation

parks, such as China-Laos Cross-border Economic Cooperation Zone and

China-Kazakhstan Khorgos International Border Cooperation Center, are under

construction.

Unimpeded

trade

has been

improved

Since the initiative was put forward, Chinese banks have participated in more

than 2,600 projects related to the Belt and Road Initiative and issued more than

200 billion USD loans. Meanwhile, by the end of 2017, 55 banks from 21 countries

along the route had set up branches in China.

Financial

integration

has been

expanded

People-to-

people bond

has been

Projects of people-to-people cooperation such as Silk Road culture year, tourism

year, art festival, film and TV project, seminar and think tank dialogue are

flourishing.

strengthened

08

Energy Cooperation under the Belt and Road Initiative

1.1.2 Six Economic Corridors and Three Blue Economic Channels

Based on the Belt and Road Initiative and the need to promote international

cooperation under new circumstances, and taking the route of the ancient Silk Road

into consideration, six economic corridors has been determined. New Eurasian Land

Bridge Economic Corridor extends westward from the eastern coast of China to Central

and Eastern Europe, passing through the northwestern part of China, Central Asia and

Russia. Construction of this corridor is based on a modern international logistics system

such as China Railway Express, with focus on economic development and productivity

cooperation, expansion of cooperation in energy resources, and establishment of a highly

efficient regional market. China-Mongolia-Russia Economic Corridor was proposed

by President Xi Jinping at the meeting with the heads of state of Russia and Mongolia

on September 11, 2014. The three neighbors should dovetail the Silk Road Economic

Belt with the Eurasian Economic Union Proposal and Mongolia’s Steppe Road Program,

to build the China-Mongolia-Russia Economic Corridor. China-Central Asia-West Asia

Economic Corridor extends westward from northwestern China via Central Asia to the

Persian Gulf, the Arabian Peninsula, and the Mediterranean coast, involving Central Asia,

West Asia and North Africa. Bangladesh-China-India-Myanmar Economic Corridor

connects the three sub-regions of East Asia, South Asia and Southeast Asia, and links

up the Pacific and Indian oceans. China-Pakistan Economic Corridor is a flagship

program of the Belt and Road Initiative. The governments of both China and Pakistan

attach great importance to it and have actively started preparation of long-term plans.

China-Indochina Peninsula Economic Corridor starts from Southwest China, and

connects with countries on the Indochina Peninsula, thus serving as an important channel

for wider and higher-level cooperation between China and ASEAN.

New Eurasian

Land Bridge

Economic

Corridor

China-

Mongolia-

Russia

China-Pakistan

Economic

Corridor

Six Economic

Corridors

China-Central

Asia-West

Asia Economic

Corridor

Bangladesh-

China-India-

Myanmar

Economic

Corridor

China-Indochina

Peninsula

Economic

Corridor

09

Energy Cooperation under the Belt and Road Initiative

With a view to synchronizing development plans and promoting joint actions among

countries along the Maritime Silk Road, setting up the comprehensive, multilevel and

broad-scoped Blue Partnership, jointly protecting and utilizing marine resources in a

sustainable way to achieve harmony and common development between man and

the ocean, and enhancing marine welfare, the National Development and Reform

Commission and the State Oceanic Administration hereby issued the Vision for Maritime

Cooperation under the Belt and Road Initiative to build a peaceful and prosperous 21st-

Century Maritime Silk Road. According to the priorities of the 21st Century Maritime Silk

Road, China will deepen ocean cooperation by fostering closer ties with countries along

the route, supported by the coastal economic belt in China, to actively promote the blue

economic channel that is envisioned leading up to Europe via the Arctic Ocean.

Efforts will also be made to jointly build the China-Oceania-South Pacific Economic

Channel, traveling southward from the South China Sea into the Pacific Ocean.

Cooperation will also focus on building China-Indian Ocean-Africa-Mediterranean Sea

Blue Economic Channel, by linking the China-Indochina Peninsula Economic Corridor,

running westward from the South China Sea to the Indian Ocean, and connecting the

China-Pakistan Economic Corridor and the Bangladesh-China-India-Myanmar Economic

Corridor.

Based on the six economic corridors and three blue economic channels, “6+3” key

channels are proposed and shown in Figure 1.1.

New Eurasian Land Bridge Channel

China-Mongolia-Russia Channel

China-Central Asia-West Asia Channel

Bangladesh-China-India-Myanmar Channel

China-Pakistan Channel

China-Indochina Peninsula Channel

Northeast Asia Channel

South Pacific Channel

China-Indian Ocean-Africa-Mediterranean

Sea Channel

Figure 1.1 “6+3” Key Channels

10

Energy Cooperation under the Belt and Road Initiative

1.2 Energy Cooperation

Energy cooperation is a key area for jointly pursuing the Belt and Road Initiative.

Strengthened energy cooperation is conducive to promote sustainable global energy

development and safeguard global energy security.

An important measure to promote

economic growth.

Promote

An effective means to accelerate

sustainable energy development.

Facilitate

Enhance

A key way to improve energy security.

Energy cooperation is an important measure to promote economic and society

growth of countries along the Belt and Road route. Energy is important material

basis for economic and social development, and the energy development and utilization

level is an important symbol of productivity and living standard. Countries along the Belt

and Road route have relatively weak energy industries and low energy consumption

level. In Africa, South Asia and other regions, energy consumption is still at the stage

of consuming primary biomass energy, which restricts the economic and social

development. With the acceleration of the industrialization process, the need to improve

energy infrastructure is increasingly urgent. Energy cooperation brings new opportunities

to the energy development of countries along the Belt and Road route, helps more energy

projects to be launched, improves the energy infrastructure level, and provides basic

guarantee for the economic and social development.

Energy cooperation is an effective means to promote sustainable energy

development of countries along the Belt and Road route. At present, the energy

development is faced with many common problems, such as uneven distribution of

11

Energy Cooperation under the Belt and Road Initiative

energy resources and climate and environmental problems caused by consumption of

fossil fuels. 85% of the clean energy resources in Asia, Europe and Africa are mainly

distributed in the energy belt from North Africa to Central Asia and Russian Far East at an

angle of 45 degrees to the equator, as shown in Figure 1.2. Meanwhile, the major loads

are concentrated in East Asia, South Asia, Europe, Southern Africa and other regions,

hundreds to thousands of kilometers away from the energy belt. Globally, inefficient

combustion of fossil fuels and biomass produces more than 90% of sulfur dioxide,

nitrogen oxides and 85% of PM_2.5. Energy cooperation under the Belt and Road Initiative

will enhance energy infrastructure connectivity, and improve the ability to optimize the

allocation of energy resources. It will promote global sharing of energy development

and accelerate the eradication of energy poverty. It will also speed up the establishment

of a green and low-carbon global energy governance system and promote sustainable

development.

Energy cooperation is a key way to improve energy security of countries along

the Belt and Road route. In the process of economic globalization, countries' energy

supply and demand are interrelated. Therefore, energy security requires strengthened

cooperation and joint efforts of all countries. Energy cooperation under the Belt and

Road Initiative is beneficial to promote the communication and exchanges among energy

exporting, importing and transit countries, strengthen the coordination of energy policies

of different countries, and solve problems through consultation. It will help improve the

international energy market and establish an emergency response mechanism, stabilize

reasonable energy prices, and promote diversified and sustainable energy supply. It

is also conducive to promote research and sharing of advanced energy technologies,

advance the progress of energy technologies, and accelerate the establishment of a

clean, safe, economic and reliable energy supply system.

Energy Belt at an

°

Angle of 45 to the

Equator

°

Figure 1.2 Energy Belt at an Angle of 45 to the Equator

12

Energy Cooperation under the Belt and Road Initiative

Three factors contribute to the huge potential for clean energy cooperation among

countries along the Belt and Road route.

The ﬁrst is abundant resources.

Regions along the Belt and Road route are rich in clean energy resources

with diverse types, wide distribution and strong complementarity, which are

suitable for the development of large-scale wind and solar energy bases, thus

transforming resource advantages into economic advantages by strengthening

interconnection and expanding allocation range.

The second is technically feasible.

With advanced and mature UHV transmission technology, the distance

between the major clean energy bases and load centers is within the beneficial

range of UHV. Advances in clean energy power generation technologies and

breakthroughs in power system smart control and large-scale energy storage

technologies have ensured the access and consumption of various clean power

sources and the safe and stable operation of power grids.

The third is economically competitive.

With technological progress and large-scale development, the average cost

of wind power and PV power generation has decreased by 30% and 75%

respectively in the past five years. The international bidding price of PV projects

put into operation around 2020 in Saudi Arabia and the United Arab Emirates

has been as low as about 2 cents/kWh. It is expected that the competitiveness

of PV and onshore wind power will comprehensively surpass that of fossil fuels

before 2025.

Strengthened energy cooperation under the Belt and Road Initiative will

meet the growing demand for energy consumption and promote the

rapid economic and social development. It will jointly create an open and

inclusive energy community of shared interests, responsibility and destiny.

13

2

GEI Promotes the

Belt and Road

Construction

GEI Promotes the Belt and Road Construction

2.1 GEI Development Strategy

In order to cope with the challenges brought by the large-scale utilization of fossil fuel

and solve the problems of resource shortage, environmental pollution, climate change

and the population without electricity access, it is necessary to accelerate the world

energy and electricity transition. Its essence is to promote clean development,

and the fundamental direction is to implement “Two Replacements”. On the energy

production side, “Clean Replacement” represents the replacement of fossil fuels with

clean alternatives such as solar, wind and hydro energy, to generate electricity. On

the energy consumption side, “Electricity Replacement” represents the reduction

of the direct use of coal, oil, nature gas and primary biomass energy by using more

electricity, so as to get rid of the reliance on fossil fuels and enlarge the modern energy

accessibility. Promoting the “Two Replacements”, improving the level of electrification and

restoring fossil fuels to its basic attribute as industrial raw material are the fundamental

directions to solve the energy related problems and improve the friendliness, economic

competitiveness and development quality of energy system.

Large-scale development of clean energy requires a platform for the large-scale

development and use of clean energy worldwide, namely GEI, to accelerate green

and low-carbon development, protect the ecological environment of the earth, provide

fundamental guarantee for clean development, and effectively promote sustainable

development of the world.

GEI is a platform for energy clean development and also a modern energy system

for production, allocation and use of clean energy globally. Its essence is “Smart

Grid + UHV power grid + Clean Energy”. Smart Grid is the foundation. It integrates

modern smart technologies of advanced transmission, intelligent control, renewable

energy integration and new energy storage. It can adapt to grid integration and

consumption of various types of centralized and distributed clean energy, meet the needs

of intelligent electrical equipment access and interactive services in various forms. It

can realize the coordinated development of power generation-power grid-load demand-

storage systems, and complementation and efficient utilization of various energies. UHV

power grid is the key. UHV power grid is mainly composed of 1000 kV AC and 800 kV,

1100 kV DC systems, bringing significant advantages including long transmission

distance, large capacity, high efficiency, low line loss, less land use and high security. It

can achieve the cross-border and intercontinental power transmission of thousands of

kilometers at 10 GW level. Clean energy is the priority. With the progress of hydropower,

wind power, solar power and other clean energy conversion technologies and the rapid

cost reduction, the competitiveness of clean energy will comprehensively surpass fossil

fuels. Therefore, it will accelerate the replacement of fossil fuels by clean energies and

make them the dominant energies.

UHV

power

grid

Global Energy

Interconnection

Smart

Grid

Clean

Energy

15

GEI Promotes the Belt and Road Construction

2.2 GEI Promotes Sustainable Development of the World

The core of sustainable development is clean development. GEI plays an overall

and fundamental role in promoting the green and low-carbon energy transition and

sustainable economic, social and environmental development.

Building GEI is a strategic approach to accelerate energy transition. GEI will

transform energy production from being dominated by fossil fuels to being dominated by

clean energy, energy allocation from being locally balanced to being widely distributed,

and energy consumption from being centered on coal, oil and gas to electricity. By

2050, global energy consumption will reach 26 billion tce, of which clean energy

accounts for 71% of primary energy, electricity for 52% of end-use energy. See Figure

2.1. Global electricity consumption will increase from 21 PWh in 2015 to 60 PWh in

2050. Per capita electricity consumption will increase from 2,880 kWh in 2015 to

6,180 kWh in 2050. Intercontinental and cross-region power flow will reach 720 GW.

Optimal allocation of clean energy, complementation of various energies, and joint

peak adjustment will be realized, with achieving tremendous benefits from mutual

complementation and supply of various energies in different regions between east

and west and at different seasons between northern and southern hemispheres.

Figure 2.1 GEI Energy System Outlook by 2050 (billion tce)

16

GEI Promotes the Belt and Road Construction

Building GEI promotes economic and social development and fosters a new driver

for economic growth. The total global investment of GEI is about 38 trillion USD,

including 27 trillion USD in power source and 11 trillion USD in power grid. Construction

of GEI can create enormous productivity, liberate energy elements for the world economy,

upgrade technology worldwide, and become a new engine of economic growth. It will

make electricity trade a major form of world energy trade, promote the development of

electricity finance, and inject new impetus into economic globalization. GEI will reduce

the cost of economic development. By 2050, the average levelized cost of energy

(LCOE) will be 2.8 cents/kWh lower than it is today, reducing electricity bills by 1.8 trillion

USD one year and reducing 40% energy consumption of the current level. GEI will

promote world peace and harmony. It will promote global sharing and cooperative

development of clean energy, enhance political mutual trust, and foster a new pattern of

energy security with featuring mutual benefit and win-win progress. It will also transform

resource advantages into economic advantages, narrow the gap between the rich and

the poor in different regions, and achieve common prosperity.

Building GEI provides a global emission reduction path for achieving the target

of keeping global average temperatures from rising 2 degrees Celsius in the Paris

Agreement. Building GEI can fundamentally reverse the reliance on the current global

energy development path, and reduce cumulative carbon dioxide emissions from energy

sector from 4.8 trillion tons to about 1 trillion tons within this century, so as to achieve

the target of holding global average temperature increase to well below 2°C. “Clean

Replacement” and “Electricity Replacement” are the keys to achieving global carbon

emission reduction goals. Implementing “Clean Replacement”, a central initiative to

control carbon emissions at source, will enable energy sector to achieve 58% of carbon

dioxide reduction targets. Implementing the “Electricity Replacement”, a key measure

for energy sector to promote emission reduction of the whole society, will enable energy

sector to achieve 22% of carbon dioxide reduction targets. See Figure 2.2.

100 million tons of CO₂

Business-as-usual Scenario

GEI 2Ď Scenario

1000

800

600

400

200

0

-200

2010

2020

2030

2040

2050

2060

2070

2080

2090

2100

Figure 2.2 CO₂Emission Reduction Path of Global Energy Sector under GEI 2°C Scenario

17

GEI Promotes the Belt and Road Construction

Building GEI is the key way to solve major global environmental problems. Large-

scale development and utilization of fossil fuels has brought environmental pollution

problems. By building GEI, global consumption of fossil fuels will fall to 7.4 billion tce by

2050, equivalent to 18.6 billion tce replaced by clean energy every year. The world will

reduce emissions of 250 million tons of sulfur dioxide, 240 million tons of nitrogen oxides,

140 million tons of inhalable particulate matter, and 8~10 million cases of diseases

caused by air pollution every year. Water will be saved by more than 100 billion cubic

meters for power generation every year, and discharge of waste water from the exploitation,

transmission and use of fossil fuels will be reduced by 56% compared with 2015.

2.3 GEI Promotes the Belt and Road Construction

Countries along the Belt and Road route cover most of East Asia, South Asia, Southeast

Asia, West Asia, North Africa and Central and Eastern Europe. Their economic, social

and environmental challenges to varying degrees restrict the sustainable development

of different regionals and countries. In terms of economy, the development level of

countries is uneven, as the per capita GDP of nearly two-thirds of countries is lower than

the global average. In terms of society, there are various religions and cultures, ranging

from traditional oriental countries such as China and India to Eurasian countries such as

Russia and Turkey, and countries whose cultures are blended like Singapore. In terms of

environment, these countries are not only the centralized production and consumption

area of fossil fuels, but also the protection area with fragile ecological environment.

High energy consumption and high pollution industries account for a high proportion in

the regional economic structure, and thermal power accounts for more than 70% of the

installed power generation capacity. GEI is an important measure and starting point for

the implementation of the Belt and Road Initiative. It plays an important role in achieving

policy coordination, facilities connectivity, unimpeded trade, financial integration

and people-to-people bond of the Belt and Road Initiative, promoting sustainable

development of mankind and building a community of shared future for mankind.

Global Energy

Interconnection

Boosts

people-to-

people bonds

Promotes

policy

coordination

Enables

facilities

connectivity

Leads

financial

integration

Facilitates

unimpeded

trade

18

GEI Promotes the Belt and Road Construction

GEI promotes policy coordination. Jointly building GEI will enhance political mutual

trust and develop a new type of cooperation architecture that is open, inclusive,

balanced and beneficial to all. It will also strengthen economic policy coordination

among countries, align national development plans with regional cooperation plans,

and promote optimal allocation of energy resources among countries and regions. By

doing so, regional cooperation will be carried out in more fields with a broader scope

and at a higher level, and energy cooperation among countries will be taken to a new

level.

GEI enables facilities connectivity. Building GEI will optimize the development

pattern of power grids in various countries and comprehensively improve their

capability for optimal allocation, security and interactive services. It will promote the

upgrading and development of countries from traditional industries to advanced

industries such as green and low-carbon energy, new-generation information and

communication, and high-speed electrified transportation, and bring all countries into

a new stage of economic development featuring cleaner energy use, smarter energy

production and more convenient circulation.

GEI facilitates unimpeded trade. Electricity trade will become a major form of

global energy trade, driving trade cooperation in power equipment, UHV, smart grids

and other power technologies. A cross-border electricity trading mechanism will

be established to promote free trade, free flow, efficient coordination and efficient

allocation of resources in global electricity transactions. It will boost the construction

of power, transportation, communications and other infrastructures, further improve

the level of connectivity, and inject vitality into various forms of trade channels and

services.

GEI leads ﬁnancial integration. We should innovate financing models and use the

overall credit of the industrial chain as the guarantee, so as to improve the financing

ability of individual enterprises in the industrial chain to carry out relevant projects,

reduce financing costs, and achieve a multi-win situation between enterprises

and financial institutions in the industrial chain. We should set up a new financial

cooperation platform to provide comprehensive solutions for all enterprises in the

industry chain of power generation, transmission and consumption, so as to form

a community of shared risks and benefits and achieve a market-oriented, mutually

beneficial and sustainable development model. We will channel global capital into

new industries such as renewable energy, new materials, advanced equipment and

intelligent manufacturing, and create a new engine for global economic growth.

GEI boosts people-to-people bond. Building GEI will promote cooperation and

exchanges among the energy, economic, technological and think tank sectors, and

strengthen cooperation in energy technology exchanges and professional personnel

training among countries. It will ensure that people have access to green, clean and

low-cost electricity. By 2030, Asian countries are expected to have universal access

to electricity, and Africa’s electricity penetration rate will rise to more than 60%. It will

enable people to enjoy cleaner air, water and food, have better living environment and

share the development benefits with closer geographical ties.

19

3

The Belt and

Road Power Grid

Interconnection Plan

The Belt and Road Power Grid Interconnection Plan

3.1 New Eurasian Land Bridge Channel

The New Eurasian Land Bridge Channel extends from east to west, connecting the

economic circles of the Pacific Ocean and the Atlantic Ocean. The hinterland countries

along the channel, with abundant mineral and energy resources, have huge potential for

economic development.

•

ꢀ Build a clean energy corridor between Asia

and Europe to advance common development.

ꢀ Pacific and Atlantic coastal countries

have a large power demand and attach

•

importance to low-carbon development.

ꢀ Promote power grid interconnection between

•

Asia and Europe, and share interconnection

benefits brought by differences in resource and

time zone.

ꢀ Clean energy resources are abundant and

mainly distributed in Central Asia and the

North Sea of Europe.

•

ꢀ Several countries along the channel have

realized grid interconnection, and European

countriesare interconnected in large-scale.

Construction of this channel will facilitate effective development

and utilization of clean energy resources in the central strip,

turn its resource advantages into economic advantages,

and realize large-scale cross-time zone multiple energy

complement between Asia and Europe, so as to transmit

clean power to load centers in Eastern China and Europe to

gain interconnection benefits.

3.1.1 Development Foundation

Pacific and Atlantic coastal countries have a large power demand and attach

importance to low-carbon development. The Western Europe and China on both side

of the channel have strong economic strength and large economy, which causes a large

consumption of energy and power. In 2015, the electricity consumption and peak demand

of regions along the channel was 9.6 PWh and 1.57 TW. The installed generation capacity

was 2.7 TW, of which clean energy contributed 42% of the total capacity. Western Europe

and China respectively accounted for 20% and 60% of the total electricity consumption.

Europe is the world’ leader in low-carbon development, and China has the largest amount

and growth rate of clean energy installed capacity in the world.

21

The Belt and Road Power Grid Interconnection Plan

Clean energy resources are abundant and mainly distributed in Central Asia and the

North Sea of Europe. The middle strip of the channel, especially the Central and West

China and Central Asia with a vast available land, has abundant clean energy resources

and great development potential. Wind energy resources are mainly distributed in

Northeast, North and Northwest China, Central and Western Kazakhstan and the North

Sea of Europe, with the technical potential of 1 TW, 66 GW and 300 GW respectively.

The average wind speed is 6~8 m/s, which in the North Sea can reach 9 m/s. Solar

energy resources are mainly concentrated in Northwest China and Central and Southern

Kazakhstan with an annual GHI 1,500~1,800 kWh/m², and the technical potentials are

respectively 1.6 TW and 120 GW. Yenisei River in Russia is rich in hydropower resources,

with the technical potential of 60 GW.

Several countries along the channel have realized grid interconnection, and

European countries are interconnected in large-scale. Power grid infrastructure in

Europe is relatively developed and has formed an interconnected power grid covering

whole Europe. Russia, with a vast territory and large-scale power grids, connects with

China via DC back-to-back and 220 kV AC lines, and with Kazakhstan via 500/220 kV AC

lines. China’s cross-border power grid interconnection is in the initial stage.

The electricity consumption and installed capacity of countries or regions along the

channel are shown in Figure 3.1.

Electricity Consumption in 2015/ 2016

Proportion of Clean Energy

Proportion of Thermal Power

1.1 PWh

2015

Installed capacity

in 2015: 330 GW

30%

Russia and Surrounding Countries

1.7 PWh

180 TWh

2015

27%

Installed capacity

in 2015: 46 GW 6 PWh

66%

Installed capacity

in 2016: 0.56 TW

660 TWh

2016

Central Asia

2016

36%

Western Europe

Installed capacity

in 2015: 1.6 TW

Installed capacity

in 2016: 0.19 TW

45%

Eastern Europe

2015

China

Figure 3.1 Electricity consumption and installed capacity of the New Eurasian Land Bridge Channel

22

The Belt and Road Power Grid Interconnection Plan

3.1.2 Development Strategy

Build a clean energy corridor between Asia and Europe to advance

common development. Based on economy and energy resources

advantages, it is necessary to develop a electricity-centered energy

production and consumption structure, accelerate the development

of wind power in Northwest, North and Northeast China, solar power

in the Northwest China, wind power and solar power in Kazakhstan,

hydropower in Central Russia, and wind power in the northern coastal

regions of Eastern Europe and Western Europe. In this way, the clean

energy corridor between Asia and Europe will be built to stimulate the

economic vitality of Asian and European countries by linking the active

East Asian economy with the advanced European economy.

Promote power grid interconnection between Asia and Europe, and

share interconnection beneﬁts brought by differences in resource

and time zone. Based on power infrastructure construction in each

country, cross-border interconnection needs to be strengthened to

expand the allocation of clean energy resources in Kazakhstan and

Russia from neighboring countries to load centers in Eastern China

and Western Europe, so as to realize the Asia-Europe interconnection

between Asia and Europe and share interconnection benefits brought

by differences in resource and time zone.

23

The Belt and Road Power Grid Interconnection Plan

3.1.3 Interconnection Plan

Construction of this channel will facilitate effective development and

utilization of clean energy resources in the central strip, turn its resource

advantages into economic advantages, and realize large-scale cross-

time zone multiple energy complement between Asia and Europe, so as to

transmit clean power to load centers in Eastern China and Europe to gain

interconnection beneﬁts.

Power Supply and Demand

By 2050, the electricity consumption of Central Asia will reach 620 TWh, with installed

capacity of 330 GW, of which clean energy accounts for 73%. The electricity consumption

of Russia and surrounding countries will reach 1.8 PWh, with installed capacity of 960

GW, of which clean energy accounts for 83%. The electricity consumption of Eastern

Europe and Western Europe will reach 1.3 PWh and 2.9 PWh respectively, with installed

capacity of 580 GW and 1.24 TW, of which clean energy accounts for 98% and 94%.

Clean Energy Base Development

In terms of wind power, wind power bases in Kazakhstan in Central Asia and the

northern coastal areas of Eastern Europe and Western Europe will be developed with

installed capacity of 60 GW and 130 GW respectively. In terms of solar power, solar

power bases in Central and North Kazakhstan will be developed with installed capacity

of 70 GW respectively. In terms of hydropower, Yenisei River hydropower base in Russia

will be developed with installed capacity of 37 GW.

Power Grid Interconnection Plan

Trans-regional and cross-border interconnection: the 800 kV DC transmission

channels between Kazakhstan and China, Kazakhstan and Western Europe will be built

to deliver wind and solar power in Kazakhstan to load centers in Eastern China and

Western Europe, and realize interconnection between Asia and Europe. Annual electricity

trade on the channel will reach 120 TWh.

24

The Belt and Road Power Grid Interconnection Plan

Energy interconnection plan in countries or regions along this channel is shown in Figure

3.2.

Key regions or countries: By 2050, China will build a strong smart grid with UHV

as its backbone and coordinated development of power grids at all voltage levels, to

realize complement among different energies, and large-scale transmission and optimal

allocation. China will become network hub to link energy production and consumption. In

Central Asia, a 500 kV AC grid will be built, enabling flexible regulation and transmission of

hydropower, wind, solar and other clean energy. Kazakhstan will develop UHV AC looped

network around the load center in northern area and be closely connected with other

countries through a number of 500 kV transmission lines to support optimal allocation and

consumption of clean energy on a large scale. In Russia and its surrounding countries,

the UHV AC looped network covering the Northwest, Central, Southern and Volga region

will be built. Two 800 kV DC transmission lines from Barents Sea to St. Petersburg and

to Veshkayma will deliver clean energy power in the northern area to the western load

centers. Russia and its neighbors are more closely interconnected through a number of

750 kV AC lines. Eastern Europe and Western Europe will strengthen 400 kV AC grids

and build 800 / 660 flexible DC grid to achieve intracontinental power transmission and

consumption.

800 kV DC

1000 kV AC

750 kV AC

500 kV AC

400 kV AC

project II

project I

Kazakhstan

Germany

China

Figure 3.2 Interconnection Plan of the New Eurasian Land Bridge Channel

25

The Belt and Road Power Grid Interconnection Plan

3.2 China-Mongolia-Russia Channel and Northeast Asia Channel

The China-Mongolia-Russia Channel and Northeast Asia Channel cover six countries

including China, Mongolia, Russia, Japan, ROK and DPRK. In June 2016, China,

Mongolia and Russia signed the Planning Outline of the Construction of the China-

Mongolia-Russia Economic Corridor. Deepened China-Japan, China-ROK, and Japan-

Russia bilateral cooperation has played a positive role in Northeast Asia energy

interconnection.

•

ꢀ Clean development ensures energy

security in Northeast Asia.

ꢀ The energy supply and demand of

countries along the channel are highly

•

complementary.

ꢀ Electricity-centered electricity consumption

pattern promotes low-carbon and high

•

ꢀ Russian Far East and Mongolia have the

conditions for large-scale development of

efficient development.

•

clean energy resources.

ꢀ Regional collaboration boosts win-win

cooperation.

•

ꢀ Power technology has obvious

advantages in several countries.

Giving full play to the advantages of clean energy resources,

the channel connects the clean energy bases in Russian

Far East and Mongolia with load centers in North and

Northeast China, Japan and ROK, which forms “Three Ring

and One Line” cross-border grids. “Three Ring” refers to

Bohai Sea / North Yellow Sea, Sea of Japan, Amur River /

Heilongjiang River,and “One Line” refers to south Mongolia

to north China. By doing so, clean energy will be allocated

on a large scale from north to south and from west to east.

3.2.1 Development Foundation

The energy supply and demand of countries along the channel are highly

complementary. Countries along the channel range from resource-rich exporters like

Mongolia and Russia to economically advanced and resource-poor countries like Japan

and ROK. In 2015, the electricity consumption of major countries and regions along the

channel was 3.3 PWh, of which North and Northeast China, Japan and ROK accounted

for more than 98%. In 2015, energy imports of Japan and ROK accounted for about 93%

and 82% of their total energy consumption respectively.

Russian Far East and Mongolia have the conditions for large-scale development of

clean energy resources. Wind energy resources are distributed in the Sea of Okhotsk,

26

The Belt and Road Power Grid Interconnection Plan

the coast of Sakhalin Island and Mongolia, with an average wind speed of 7~9 m/s

and the technical potential of 260 GW, 89 GW and 1.1 TW respectively. Solar energy

resources are mainly concentrated in Mongolia, with an annual GHI 1,600 kWh/m²and

the technical potential of 1.9 TW. Hydropower resources are mainly distributed in the

Lena River in Russian Far East, with the technical potential of 40 GW.

Power technology has obvious advantages in several countries. Japan and

ROK have strong advantages in advanced manufacturing, renewable energy and

environmental conservation, and can provide financial and technical support for

the development of clean energy in this region. The technologies and experience

accumulated in the fields of smart grid and UHV in China have laid a wonderful

foundation for power grid interconnection. As of March 2018, 27 UHV power transmission

projects have been completed or under construction in China. The first UHV project has

been in safe operation for 10 years. In addition to 500 kV back-to-back project between

China and Russia, the power grid among China, Russia and Mongolia is interconnected

by 220 kV or below, with annual electricity trade less than 5 TWh. Both Japan and ROK

have not developed power grid interconnection with other countries.

The electricity consumption and installed capacity in countries or regions along the

channel are shown in Figure 3.3.

900 TWh

Installed capacity

in 2015: 260 GW

30%

Installed capacity

in 2015: 1.1GW

5%

2015

6 PWh

2015

Russia

Mongolia

Installed capacity

in 2015: 10 GW

11 TWh

2015

55%

930 TWh

Installed capacity

in 2015: 320 GW

41%

6 PWh

DPRK

2015

500 TWh

Japan

Installed capacity

in 2015: 100 GW

36%

33%

Installed capacity

in 2015: 1.6 TW

2015

ROK

China

Electricity Consumption in 2015

Proportion of Clean Energy

Proportion of Thermal Power

Figure 3.3 Electricity consumption and installed capacity of the China-Mongolia-Russia Channel and

Northeast Asia Channel

27

The Belt and Road Power Grid Interconnection Plan

3.2.2 Development Strategy

Clean development ensures energy security in Northeast Asia.

01

According to developing large-scale base as the principle and the distributed as the

supplement, developing clean energy bases in Russian Far East, Mongolia, North and

Northeast China will increase self-sufficiency of energy in counties or regions along

the channel and reduce dependency on importing fossil fuels, so as to ensure energy

security and clean supply, and provide strong support for economic growth.

Electricity-centered consumption pattern promotes

low-carbon and high efﬁcient development.

02

03

It is important to improve the electrification rate and the energy efficiency, transform

the development path of high pollution and emission, and change the current mode of

energy production and consumption that relies heavily on fossil fuels, so as to provide

high-quality power support for the production and life.

Regional collaboration boosts win-win cooperation.

It is necessary to speed up upgrading of national power grid, construct cross-border

interconnection projects, and build a clean power distribution network with large capacity,

high efficiency and close interconnection, so as to expand the scale of regional energy

and power trade, balance the economic interests of power exporting countries and the

energy security of importing countries, and finally promote all-round cooperation among

Northeast Asian countries in clean energy development, technology innovation and

project construction.

28

The Belt and Road Power Grid Interconnection Plan

3.2.3 Interconnection Plan

Giving full play to the advantages of clean energy resources, the channel

connects the clean energy bases in Russian Far East and Mongolia with

load centers in North and Northeast China, Japan and ROK, which forms

“Three Ring and One Line” cross-border grids. “Three Ring” refers to

Bohai Sea / North Yellow Sea, Sea of Japan, Amur River / Heilongjiang

River, and “One Line” refers to south Mongolia to north China. By doing so,

clean energy will be allocated on a large scale from north to south and from

west to east.

Power Supply and Demand

By 2050, the electricity consumption and installed capacity of Mongolia will reach 31.9

TWh and 56.3 GW, of which clean energy accounts for 88%. The electricity consumption

and installed capacity of Russian Far East will reach 88 TWh and 140 GW, of which

clean energy accounts for 91%. The electricity consumption and installed capacity of

DPRK will reach 184 TWh and 72 GW, of which clean energy accounts for 74%. The

electricity consumption and installed capacity of ROK will reach 726 TWh and 210 GW, of

which clean energy accounts for 79%. The electricity consumption and installed capacity

of Japan will reach 1.3 PWh and 460 GW, of which clean energy accounts for 79%.

Clean Energy Base Development

In terms of wind power, wind power bases in eastern Mongolia, the Sea of Okhotsk and

Sakhalin Island in Russia will be developed with installed capacities of 18 GW, 20 GW and 45

GW respectively. In terms of solar power, solar power bases in southern Mongolia will be

developed with installed capacity of 30 GW. In terms of hydropower, hydropower bases

in Lena River basin in Russia will be developed with installed capacity of 32 GW.

Power Grid Interconnection Plan

Trans-regional and cross-border interconnection: a number of 660~ 800 kV DC

projects from Mongolia and Russian Far East to China and 500~ 800 kV DC projects

from China and Russian Far East to ROK, DPRK and Japan will be built, to form five

interconnection channels with a pattern of “Three Ring and One Line” grids, including

Mongolia-China-ROK-Japan, China-Russia, Russia-Japan, China-DPRK-ROK and

Russia-DPRK-ROK. It connects hydropower in Russian Far East, wind power on the Sea

of Okhotsk and Sakhalin Island in the north, wind power in Northeast and North China,

solar and wind power on Gobi of Mongolia in the west, and transmit power southward to

North China, DPRK, ROK and Japan, so as to expand energy supply channels, reduce

dependence on energy imports and improve overall energy security in this region. The

annual electricity trade will be 530 TWh.

29

The Belt and Road Power Grid Interconnection Plan

Key regions or countries: By 2050, Northeast and North China will become important

clean power distribution hub for countries along the channel. It will receive clean power

on a large-scale from Russia and Mongolia, and then transmit certain amount to Japan,

DPRK and ROK. Mongolia will build 400 kV AC power grid connecting clean energy

bases in the south and east with the load center in the north to support clean energy

integration and consumption as well as large-scale outbound transmission. Russian Far

East will build 500 kV AC grid covering major load centers, with the capability to transmit

42 GW power to regions along the channel on the basis of meeting local power demand.

DPRK will build 500 kV AC looped network covering the whole country, to strengthen

the construction of north-south power transmission lines, and enhance its electricity

access and evacuation capability. ROK will form 765 kV AC looped network, and receive

electricity power from China, Russia and other neighboring countries, so as to improve

the diversity of energy supply and ease the pressure on power supply. Japan will

optimize the eastern and western 500 kV AC power grids with two different frequencies,

build more DC lines to strengthen the exchange capability, and receive power from

China, ROK, Russia and other countries to meet the power demand of important load

centers, such as Tokyo, Chubu, Kansai, etc.

The energy interconnection plan of countries or regions along the channel is shown in

Figure 3.4.

800 kV DC

660 kV DC

500 kV DC

Russian Far East

1000 kV AC

765/750 kV AC

500 kV AC

400 kV AC

DC Back-to-back

Mongolia

DPRK

ROK

China

Japan

Figure 3.4 Interconnection Plan of the China-Mongolia-Russia Channel and

Northeast Asia Channel

30

The Belt and Road Power Grid Interconnection Plan

3.3 China-Central Asia-West Asia Channel

The China-Central Asia-West Asia Channel is an important hub and key area of the

“Ancient Silk Road”. Central and West Asia with abundant resources are major energy

exporters in the world.

•

ꢀ Give full play to the advantages of

ꢀ Clean energy is abundant and

suitable for large-scale development

clean energy resources and accelerate

the energy transition in West Asia and

Central Asia.

and outbound transmission.

•

ꢀ The development model that relies

•

heavily on fossil fuels faces challenges.

ꢀ Give full play to location advantages

and promote power grid interconnection

•

ꢀ Development and interconnection of

power grid need to be strengthened.

between Asia and Europe.

The channel connects the clean energy belt in Central

and West Asia with the load centers in China, West Asia

and Turkey, transmits clean energy power to Europe, and

achieves power complementation between Central Asia and

western China, in a bid to realize the efficient utilization of

clean energy.

3.3.1 Development Foundation

Clean energy is abundant and suitable for large-scale development and outbound

transmission. Central Asia and West Asia are rich in clean energy resources, with small

population density and limited local market, which is suitable for large-scale development

and export of clean energy. Solar energy resources are mainly concentrated in the

southeast Turkmenistan, Iran and north Saudi Arabia, with an annual GHI 1,500-

2,700 kWh/m²and the technical potential of 70 GW, 300 GW and 300 GW respectively.

Hydropower resources are mainly distributed in Amu Darya and Syr Darya in Kyrgyzstan

and Tajikistan, with the technical potential of 23.5 GW and 24.5 GW respectively.

The electricity consumption and installed capacity in countries or regions along the

channel are shown in Figure 3.5.

31

The Belt and Road Power Grid Interconnection Plan

Electricity Consumption in 2015 / 2016

Proportion of Clean Energy

Proportion of Thermal Power

6 PWh

27%

180 TWh

2015

Installed capacity

in 2015: 46 GW

36%

Installed capacity

in 2015: 1.6 TW

280 TWh

44%

Central Asia

Installed capacity

2015

in 2016: 80 GW

2016

China

Turkey

8%

960 TWh

2015

Installed capacity

in 2015: 290 GW

West Asia

Figure 3.5 Electricity consumption and installed capacity of the China-Central Asia-West Asia Channel

The development model that relies heavily on fossil fuels faces challenges. The

oil reserves of the six Gulf States in West Asia account for about 46% of world. In Saudi

Arabia, Oman, Bahrain and Qatar, more than 70% of the fiscal revenue comes from oil

and gas exports, and their economic development is greatly affected by the fluctuation

of international crude oil prices. In 2015, the electricity consumption of countries along

the channel stood at about 7.4 PWh, with 13% in West Asia and 6% in Central Asia.

The installed capacity of West Asia was 290 GW, with oil and gas accounting for 92%.

Therefore, the pressure to deal with environmental protection and climate change is

increasing.

Development and interconnection of power grid need to be strengthened. AC

interconnection has been established between Central Asia, West Asia and Turkey.

Among them, Central Asia and Western Asia are interconnected via 110/220/500 kV AC

lines, with cross-border lines mainly between Afghanistan and three countries in southern

Central Asian. West Asia and Turkey are interconnected via 110/500 kV AC lines. The

power grid interconnection between China and Central Asia, China and West Asia, has

not been developed.

32

The Belt and Road Power Grid Interconnection Plan

3.3.2 Development Strategy

Give full play to the advantages of clean energy resources and accelerate the

energy transition in West Asia and Central Asia.

It is important to give priority to large-scale development of solar power in West Asia,

and realize complement between hydropower in central Asia and solar power in

West China. It will promote diversified use of energy, and lead the energy transition.

The efforts to develop the clean energy industrial chain will create new drivers of

economic growth for relevant countries and enhance the overall development of

countries along the channel.

Give full play to location advantages and promote power grid interconnection

between Asia and Europe.

It is important to make full use of the location advantages of West Asia and Central

Asia, to strengthen and upgrade existing power grids and interconnection in relevant

countries, build the interconnection between West Asia, Central Asia and Europe, so

as to play the role of an energy hub to optimize the large-scale allocation of clean

energy.

33

The Belt and Road Power Grid Interconnection Plan

3.3.3 Interconnection Plan

The channel connects the clean energy belt in Central and West Asia with

the load centers in China, West Asia and Turkey, transmits clean energy

power to Europe, and achieves power complementation between Central

Asia and western China, in a bid to realize the efﬁcient utilization of clean

energy.

Power Supply and Demand

By 2050, the electricity consumption and installed capacity of Central Asia will reach 620

TWh and 330 GW, of which clean energy accounts for 73%. The electricity consumption

and installed capacity of West Asia will be 3.9 PWh and 1.75 TW, of which clean energy

accounts for 82%. The electricity consumption and installed capacity of Turkey will be

690 TWh and 300 GW, of which clean energy accounts for 97%.

Clean Energy Base Development

In terms of solar power, solar power bases in Turkmenistan, Iran and northern Saudi

Arabia will be built, with installed capacities of 24 GW, 180 GW and 100 GW respectively.

In terms of hydropower, hydropower bases in Kyrgyzstan and Tajikistan in Central Asia

will be built, each with an installed capacity of 12 GW.

Grid Interconnection Plan

Trans-regional and cross-border interconnection: The back-to-back DC project

between Kyrgyzstan and China will be built to realize the complementation of hydropower

and solar power with 3 GW, to promote the rational utilization of hydropower resources

in Central Asia, and advance the coordinated development of the region. The DC

transmission channel between Tajikistan and Pakistan will be built to transit 1.3 GW power

to Pakistan. Two 800 kV DC transmission lines between Saudi Arabia and Turkey will be

built to transit 16 GW power to Turkey and partly to Europe via Turkey, so as to achieve

power grid interconnection between Asia and Europe. The annual electricity trade will

reach about 100 TWh.

34

The Belt and Road Power Grid Interconnection Plan

Key regions or countries: By 2050, Kyrgyzstan and Tajikistan in Central Asia will built

nationwide 500 kV AC looped network to meet the needs of domestic hydropower access,

self-use and outbound transmission. The Arabian Peninsula in West Asia will develop

strong AC grid to connect important clean energy bases with load centers. The highest

voltage of the grid in Saudi Arabia will be raised to 1000 kV to meet the needs of large-

scale access and outbound transmission of clear energy. The large-scale development

and efficient utilization of clean energy in West Asia will realize the comprehensive

transformation to clean energy of energy production and consumption. Turkey will

strengthen 400 kV AC grid to increase the capability of power local consumption and

transmission to Europe.

The energy interconnection plan of countries or regions along the channel are shown in

Figure 3.6.

800 kV DC

500 kV DC

1000 kV AC

765/750 kV AC

500 kV AC

400 kV AC

DC Back-to-back

Central Asia

Turkey

China

West Asia

Figure 3.6 Interconnection Plan of the China-Central Asia-West Asia Channel

35

The Belt and Road Power Grid Interconnection Plan

3.4 Bangladesh-China-India-Myanmar Channel

Bangladesh, China, India and Myanmar are geographically connected, bordering

Thailand, Laos and Vietnam in the southeast and the Arabian Sea and Pakistan in the

west, and straddling three economic areas of East Asia, Southeast Asia and South Asia.

•

ꢀ A clean energy corridor across the four

ꢀ Due to its large population and rapid

economic development, Bangladesh,

India and Myanmar are short of electric

power supply.

countries will be built to boost economic

growth.

•

ꢀ Coordinated development of power

•

sourcesand power grids in Bangladesh,

India and Myanmar will improve power

accessibility.

ꢀ Bangladesh and India have a single

energy supply path and high dependence

on imports.

•

ꢀ Hydropower resources are abundant.

ꢀ Regional power and energy cooperation

enjoys certain foundation.

ꢀ Strengthen cross-border power grid

interconnection and promote regional

cooperation.

Building the Bangladesh-China-India-Myanmar Channel

will make effective use of clean energy resources to meet

power demand, address the issue of the population without

electricity access, and transform the regional resource

advantages into economic advantages, so as to promote

sustainable economic and social development.

3.4.1 Development Foundation

Due to its large population and rapid economic development, Bangladesh, India and

Myanmar are short of electric power supply. In 2015, population of the three countries

totaled 1.52 billion, accounting for about 21% of that of world. Their economic growth rate

ranged from 6.6% to 8.2%, much higher than the world average. In 2015, the electricity

consumption of three countries was about 1.1 PWh, accounting for 5.3% of global

consumption. Per capita electricity consumption of Bangladesh, India and Myanmar was 304

kWh, 805 kWh and 256 kWh respectively, and the number of people without electricity access

is 50 million, 160 million and 42 million respectively. People without electricity access

have become an important factor restricting regional economic and social development.

Bangladesh and India have limited energy supply paths and high dependence

on imports. Energy consumption in Bangladesh and India is dominated by coal, oil

and natural gas. In 2015, the proportion of fossil fuels in primary energy demand of

Bangladesh and India was 75.1% and 75.3% respectively. As much as 92% and 81% of

oil in Bangladesh and India rely on imports.

36

The Belt and Road Power Grid Interconnection Plan

The electricity consumption and installed capacity of countries or regions along the

channel are shown in Figure 3.7.

Hydropower resources are abundant. Hydropower resources are mainly distributed in

Southwest China, with the technical potential of 420 GW. Irrawaddy River and Salween

River on Indochina Peninsula have the technical potential of about 100 GW. Northwest

India is rich in wind and solar power resources and suitable for large-scale development,

with an average wind speed of 6~8 m/s, annual GHI over 2,000 kWh/m². The technical

potential of wind power and solar power is 100 GW and 580 GW respectively.

Regional power and energy cooperation enjoys certain foundation. All the four

countries have an urgent need and consensus to deepen cooperation, and regional

economic and trade ties have been constantly strengthened. At present, power

infrastructure interconnection is dominated by bilateral interconnection. China and

Myanmar are interconnected via one 500 kV, two 220 kV and one 110 kV AC lines, and

Bangladesh and India are interconnected via DC back-to-back project.

Electricity Consumption in 2015

Proportion of Clean Energy

Proportion of Thermal Power

6 PWh

36%

Installed capacity

3%

in 2015: 1.6 TW

50 TWh

2015

Installed capacity

in 2015: 12 GW

China

Bangladesh

66%

Installed capacity

in 2015: 5 GW

13 TWh

2015

29%

Installed capacity

in 2015: 330 GW

1.1 PWh

2015

Myanmar

India

Figure 3.7 Electricity consumption and installed capacity of the

Bangladesh-China-India-Myanmar Channel

37

The Belt and Road Power Grid Interconnection Plan

3.4.2 Development Strategy

A clean energy corridor across the four countries will be built to boost

economic growth.

1

Priority will be given to develop hydropower in southwest China and Myanmar,

actively develop solar power in India, and orderly develop wind power in other

countries, so as to turn resource advantages into economic advantages, stimulate

economic growth, and achieve interregional economic interactive development.

Coordinated development of power sources and power grids in Bangladesh,

2 _{India and Myanmar will improve power accessibility.}

It is necessary to orderly strengthen the construction of power grids, to provide

a platform for the clean energy use. Power accessibility will be improved with

coordinated development between power grids and power sources, which can

address energy poverty.

Strengthen cross-border power grid interconnection and promote regional

3 _cooperation.

Strengthened power grid interconnection among China, Myanmar and Bangladesh

will solve power shortage in Bangladesh and Myanmar in the near future and reduce

the number of people without electricity access. In the long run, it will balance

hydropower supply in rainy and dry seasons in Myanmar, realize multi-energy

complementation and improve the resource utilization efficiency. It is important to

gradually strengthen bilateral and multilateral cross-border interconnection, and

realize power grid interconnection among four countries, which will become an

important carrier of the cooperation among them, thus deepening regional economic

cooperation by advancing cooperation in power and energy field.

38

The Belt and Road Power Grid Interconnection Plan

3.4.3 Interconnection Plan

Building the Bangladesh-China-India-Myanmar Channel will make effective

use of clean energy resources to meet power demand, address the issue

of the population without electricity access, and transform the regional

resource advantages into economic advantages, so as to promote

sustainable economic and social development.

Power Supply and Demand

By 2050, the electricity consumption and installed capacity of Bangladesh will be 800

TWh and 500 GW, of which clean energy accounts for 89%. The electricity consumption

and installed capacity of India will be 9,600 TWh and 4.16 TW, of which clean energy

accounts for 86%. The electricity consumption and installed capacity of Myanmar will be

180 TWh and 140 GW, of which clean energy accounts for 91%.

Clean Energy Base Development

In terms of wind power, wind power bases in northwest India will be built, with installed

capacity of 90 GW. In terms of solar power, solar power bases in northwest India will be

built, with installed capacity of 600 GW. In terms of hydropower, hydropower bases in

Irrawaddy and the Salween River of Myanmar will be built, with installed capacities of 60

GW.

Grid Interconnection Plan

Trans-regional and cross-border interconnection: the China-Myanmar-Bangladesh

660 kV three-terminal DC transmission project and China-Myanmar DC back-to-back

project will be built, by taking advantage of clean resources in China and consumption

market, to transmit 2 GW and 3GW power to Myanmar and Bangladesh respectively to

address power shortage in short term, which also can achieve multi-energy complement

during rainy and dry seasons in the long run for reducing backup installed capacity in

Myanmar. The Myanmar-India and China-India 800 kV DC transmission lines will be built

to realize power grid interconnection among Indochina Peninsula, China and South Asia.

The annual electricity trade of this channel will reach 160 TWh.

39

The Belt and Road Power Grid Interconnection Plan

The energy interconnection plan of countries or regions along the channel are shown in

Figure 3.8.

Key regions or countries: By 2050, Bangladesh will build 765 kV AC grid around the

capital Dhaka and extend to Chittagong, which will substantially improve the reliability

and capability of power supply, and increase the power receiving ability of countries

along the channel. In India, a strong 765 kV AC grid will be built, and hydropower bases

in the northeast and north India and load centers in the central and south India are

interconnected by a number of DC lines. Coordinated development of AC and DC can

meet the needs of domestic large-scale clean energy power allocation and external

power receiving. Myanmar will speed up the development and utilization of hydropower

dominated clean energy resources, and build UHV AC grid connecting the north and the

south to achieve power complement during rainy and dry seasons.

China

Bangladesh

India

Myanmar

800 kV DC

660 kV DC

1000 kV AC

765/750 kV AC

Figure 3.8 Interconnection Plan of the Bangladesh-China-India-Myanmar Channel

40

The Belt and Road Power Grid Interconnection Plan

3.5 China-Pakistan Channel

The China-Pakistan Economic Corridor is conducive to further strengthen the all-weather

strategic partnership of cooperation between China and Pakistan through all-dimensional

and multi-field cooperation. It is not only a prototype project and flagship project of

the Belt and Road, but also supplies an important opportunity for the development of

Pakistan.

•

ꢀ The channel will promote clean energy

ꢀ Progress has been made in China-

Pakistan power and energy cooperation.

ꢀ Abundant clean energy resources in

development in Pakistan and build a

prototypeproject for energy and power

cooperation under the Belt and Road

Initiative.

•

Pakistanare yet to be developed on a

large scale.

•

ꢀ The channel will strengthen power

grid interconnection between China and

Pakistan for shared benefits.

By connecting western China and Pakistan, the channel will

promote the large-scale optimal allocation of clean energy,

improve the transmission capability and reliability of power

grid, and meet the power demand of Pakistan with green

energy, giving full play to Pakistan’s role as a bridge.

3.5.1 Development Foundation

Progress has been made in China-Pakistan power and energy cooperation. Power

and energy cooperation between China and Pakistan has covered the entire industrial

chain, with diversified forms of investment and multi-party participation. Several power

cooperation projects, such as the thermal power project in Sahiwal, the wind power

project in Jhimpir and the PV project in Punjab, have been on operation, relieving power

shortage in Pakistan. In 2016, the electricity consumption of Pakistan exceeded 100 TWh,

with the per capita electricity consumption of 576 kWh, an increase of 28% compared

with that of 2015.

41

The Belt and Road Power Grid Interconnection Plan

Abundant clean energy resources in Pakistan are yet to be developed on a large

scale. The average wind speed in Pakistan reaches 6~8 m/s, and the annul GHI in

western Pakistan exceeds 2,200 kWh/m². The technical potential of wind, solar and

hydropower reach 24 GW, 169 GW and 57.2 GW respectively. In 2015, installed capacity

of Pakistan was 22.83 GW, including 7.26 GW hydropower. The installed capacity of

wind and solar power were 260 MW and 210 MW, accounting for only 1.1% and 0.9%

respective, indicating a low degree of development and utilization.

The electricity consumption and installed capacity of countries or regions along the

channel are shown in Figure 3.9.

Electricity Consumption in 2015

Proportion of Clean Energy

Proportion of Thermal Power

6 PWh

36%

Installed capacity

in 2015: 1.6 TW

2015

China

38%

Installed capacity

in 2015: 23 GW

90 TWh

2015

Pakistan

Figure 3.9 Electricity consumption and installed capacity of the China-Pakistan Channel

42

The Belt and Road Power Grid Interconnection Plan

3.5.2 Development Strategy

The channel will promote clean energy development in Pakistan

and build a prototype project for energy and power cooperation

under the Belt and Road Initiative. This channel will deepen

the cooperation between China and Pakistan, leverage China’s

advantages in power and energy technologies and finance, and

jointly advance the development of hydropower base in northern

Pakistan, wind power base in southern coastal areas and solar

power base in western Pakistan, so as to drive the development of

clean energy industry and economic growth in Pakistan and build a

new prototype project for power and energy cooperation under the

Belt and Road Initiative.

The channel will strengthen power grid interconnection between

China and Pakistan for shared benefits. It will strengthen existing

grids in Pakistan and build transmission corridor from north to south,

so as to realize the complement between hydropower from the south

and thermal power from the north, and promote efficient power

transmission. China and Pakistan should develop cross-border power

grid interconnection infrastructures, to promote Pakistan to become the

hub of the energy corridor connecting China, Central Asia and the Middle

East, and advance close cooperation in energy and power fields among

countries in South Asia, Central Asia, North Africa and West Asia.

43

The Belt and Road Power Grid Interconnection Plan

3.5.3 Interconnection Plan

By connecting western China and Pakistan, the channel will promote the

large-scale optimal allocation of clean energy, improve the transmission

capability and reliability of power grid, and meet the power demand of

Pakistan with green energy, giving full play to Pakistan’s role as a bridge.

Power Supply and Demand

By 2050, the electricity consumption of Pakistan will reach 1.7 PWh, with an annual

growth rate of 8.7%. The installed capacity will reach 760 GW, of which clean energy

accounts for about 87%.

Clean Energy Base Development

In terms of wind power, wind power base in southeast Pakistan will be built, with installed

capacity of 20 GW. In terms of solar power, solar power base in western Pakistan will

be built, with installed capacity of 80 GW. In terms of hydropower, hydropower base in

northern Pakistan will be built, with an installed capacity of 28 GW.

Grid Interconnection Plan

Trans-regional and cross-border interconnection: China’s Xinjiang-Pakistan’s

Nowshera 660 kV DC project and China’s Xinjiang-Pakistan’s Lahore 800 kV DC

project will be built, to achieve power grid interconnection China-Pakistan and large-scale

optimal allocation of clean energy.

The energy interconnection plan of countries or regions along the channel are shown in

Figure 3.10.

44

The Belt and Road Power Grid Interconnection Plan

Key regions or countries: By 2050, Pakistan will build a power transmission corridor

connecting the energy base in the south and the load center in the north, and develop

500 kV AC power grid. Resource allocation capability and power system intelligence will

be greatly improved, and the power supply reliability and external power receiving ability

will be significantly enhanced.

800kVDC

660kVDC

1000kVAC

750kVAC

500kVAC

China

Pakistan

Afghanistan

Figure 3.10 Interconnection Plan of the China-Pakistan Channel

45

The Belt and Road Power Grid Interconnection Plan

3.6 China-Indian Ocean-Africa- Mediterranean Sea Channel

The China-Indian Ocean-Africa-Mediterranean Sea Blue Economic Channel connects the

China-Pakistan Economic Corridor and the Bangladesh-China-India-Myanmar Economic

Corridor throughout Asia, Africa and Europe. This channel will facilitate the establishment

of a comprehensive, multilevel and multi-field partnership between relevant countries.

The electricity consumption and installed capacity of countries or regions along the

channel are shown in Figure 3.11.

•

ꢀ Accelerate industrialization of Africa

by innovating the co-development of

Electricity, Mining, Metallurgy, Industry

and Trade.

ꢀ Several regions or countries in Asia,

Europe and Africa covered by this

channel have obvious differences in

development stage.

•

ꢀ The countries along the channel are

rich in clean energy resources.

ꢀ Acceleratethe development of clean

energy and ensure energy supply.

•

ꢀ Africa is rich in mineral resources and

has huge potential for development.

ꢀ Electricity power infrastructure in

ꢀ Promote power grid interconnection

among Asia, Europe and Africa, and realize

intercontinental power complementation.

•

Africa needs to be strengthened.

The development and utilization of clean energy in Africa

and West Asia will accelerate the upgrading of power grids,

promote intercontinental and cross-border interconnection,

and form power grid interconnection pattern among Asia,

Europe,and Africa.

3.6.1 Development Foundation

Several regions or countries in Asia, Europe and Africa covered by this channel

have obvious differences in development stage. In 2015, the electricity consumption

of regions along the channel besides China was 4.9 PWh, accounting for 23% of global

electricity consumption. Western Europe is developed area with per capita electricity

consumption of 6,800 kWh. In developing areas such as South Asia, East Africa, Central

Africa and West Africa, the per capita electricity consumption was less than 1,000 kWh.

The countries along the channel are rich in clean energy resources. Wind energy

resources are mainly distributed in western region of South Asia, coastal area of West

Asia and North Africa, with an average wind speed of 6~8 m/s, 8~10 m/s and 9 m/s

respectively and the technical potential of 300 GW, 120 GW and 100 GW respectively.

Solar energy resources are mainly concentrated in western region of South Asia, western

region of West Asia and North Africa, with an annual GHI 2,100 kWh/m²and the technical

46

The Belt and Road Power Grid Interconnection Plan

1.7 PWh

66%

Installed capacity

in 2016: 560 GW

460 TWh

2016

West Europe

48%

Installed capacity

in 2016: 180 GW

2016

Southern Europe

1.2 PWh

960 TWh

9%

260 TWh

Installed capacity

in 2015: 77 GW

8%

Installed capacity

in 2015: 290 GW

29%

2015

North Africa

Installed capacity

in 2015: 370 GW

2015

West Asia

2015

South Asia

23%

Installed capacity

in 2015: 24.91 GW

507

40 TWh

2015

Installed capacity

in 2015: 11 GW

70%

2016

West Africa

East Africa

Installed capacity

in 2015: 5.34 GW

171

2015

Central Africa

76%

250 TWh

29%

Installed capacity

in 2015: 58 GW

2015

South Africa

Electricity Consumption in 2015 / 2016

Proportion of Clean Energy

Proportion of Thermal Power

Figure 3.11 Electricity consumption and installed capacity of the China-Indian Ocean-

Africa-Mediterranean Sea Channel

potential of 1.2 TW, 1.4 TW and 900 GW respectively. Africa is rich in hydropower

resources, with the technical potential of 320 GW, including 180 GW in the Congo River

in Central Africa, 69 GW in the Nile River in East Africa, 44 GW in the Niger River in

West Africa and 25 GW in the Zambezi River in South Africa. The technical potential of

hydropower in northern region of South Asia is 180 GW.

Africa is rich in mineral resources and has huge potential for development. Africa

is rich in mineral resources as it has the largest reserves of nearly 10 kinds of mineral

resources in the world with huge potential for development, such as aluminum, gold,

manganese, phosphorus and chromium, etc. Large-scale development, smelting and

processing of mineral resources in Africa need sufficient and reliable electricity power.

Electricity power infrastructure in Africa needs to be strengthened. The power grid

in Africa is mainly interconnected by AC lines with low voltage level and small exchange.

Besides North Africa and South Africa, the power grid interconnection among other

regions is weak.

47

The Belt and Road Power Grid Interconnection Plan

3.6.2 Development Strategy

Accelerate industrialization of Africa by innovating the co-development of

Electricity, Mining, Metallurgy, Industry and Trade.

01

It is necessary to coordinate the development and utilization of mineral resources and

clean resources, promote the co-development of Electricity, Mining, Metallurgy, Industry

and Trade, and improve electrification level and energy efficiency, so as to provide

power and energy support for the rapid population and economic growth, industrial

and urbanization development along this channel, and promote industrialization and

sustainable development in Africa.

Accelerate the development of clean energy and ensure energy supply.

By focusing on both centralized and distributed utilization, efforts should be made in

accelerating the development of wind, solar and hydropower in northwestern region

of South Asia, wind and solar power in western region of West Asia, large-scale

hydropower in major basins in East Africa, wind and solar power in North Africa, solar

power in West Africa, hydropower in Central Africa and various distributed power

sources, so as to address the energy shortage in South Asia and Africa.

02

03

Promote power grid interconnection among Asia, Europe and Africa, and realize

intercontinental power complementation.

It is important to focus on promoting cross-border interconnection projects, improve

intercontinental power exchange capability, promote power grid interconnection among

Asia, Europe and Africa, Power and energy cooperation platform between Europe and

its neighbors will be built, which will achieve power complementation of hydropower

in East Africa and solar power in North Africa and West Asia, reduce energy costs in

Europe and Africa, and promote coordinated and balanced development in different

regions.

48

The Belt and Road Power Grid Interconnection Plan

3.6.3 Interconnection Plan

The development and utilization of clean energy in Africa and West Asia

will accelerate the upgrading of power grids, promote intercontinental and

cross-border interconnection, and form power grid interconnection pattern

among Asia, Europe, and Africa.

Power Supply and Demand

By 2050, the electricity consumption and installed capacity of South Asia will reach 12.3

PWh and 5.55 TW, of which clean energy accounts for 87%. The electricity consumption

and installed capacity of West Asia will reach 3.9 PWh and 1.75 TW, of which clean

energy accounts for 82%. The electricity consumption and installed energy of North

Africa will reach 1 PWh and 360 GW, of which clean energy accounts for 74%. The

electricity consumption and installed capacity of East Africa will reach 500 TWh and 180

GW, of which clean energy accounts for 85%. The electricity consumption and installed

capacity of South Africa will reach 900 TWh and 280 GW, of which clean energy

accounts for 72%. The electricity consumption and installed capacity of Central Africa

will reach 600 TWh and 160 GW, of which clean energy accounts for 95%. The electricity

consumption and installed capacity of West Africa will reach 950 TWh and 240 GW, of

which clean energy accounts for 69%. The electricity consumption and installed capacity

of Western Europe will reach 2,900 TWh and 1.24 TW, of which clean energy accounts

for 94%. The electricity consumption and installed capacity of Southern Europe will

reach 800 TWh and 390 GW, of which clean energy accounts for 96%.

Clean Energy Base Development

In terms of wind power, wind power bases in western region of South Asia, western

region of West Asia, East Africa and North Africa will be built, with installed capacity of

300 GW, 90 GW, 24 GW and 22 GW respectively. In terms of solar power, solar power

bases in western region of South Asia, western region of West Asia, East Africa, North

Africa and West Africa will be built, with installed capacity of 800 GW, 440 GW, 60 GW,

230 GW and 70 GW respectively. In terms of hydropower, hydropower bases in northern

region of South Asia, the Nile Valley in East Africa, Congo River in Central Africa and

Niger River in West Africa will be built, with installed capacity of 60 GW, 44 GW, 100 GW

and 24 GW.

49

The Belt and Road Power Grid Interconnection Plan

Grid Interconnection Plan

Trans-regional and cross-border interconnection: several 500~ 800 kV DC

transmission corridors will be built between North Africa and Europe. 500~ 800 kV

DC transmission corridors be constructed between West Asia and North Africa , and

between West Asia and South Asia. 660~ 800 kV DC transmission corridors will be

formed between East Africa and West Asia, and between East Africa and South Africa.

These corridors will realize power infrastructure interconnection among Asia, Europe and

Africa, and achieve large-scale energy optimal allocation and intercontinental power

complementation, thus reducing electricity power costs. 800 kV DC projects between

East Africa and North Africa, and 660~ 1100 kV DC transmission corridors between

Congo River in Central Africa and rest regions of Africa will be built to realize hydropower

and solar power complementation in Africa. Annual electricity trade will reach 850 TWh.

Key regions or countries: By 2050, India, Bangladesh, Nepal and Bhutan in South

Asia will form 765 kV AC power grid. Pakistan will build 500 kV AC power grid. South

Asia will be interconnected with China, West Asia, Central Asia and Southeast Asia

through several DC projects. West Asia will strengthen 400/500 kV grid, build DC lines

between eastern region of West Asia and the Transcaucasia, and expand the power grid

interconnection scale between eastern and western regions of West Asia. Saudi Arabia

will construct 1000 kV AC looped network in the east and a chain UHV AC grid in the

west, connecting solar power bases with load centers. Iran will build 765 kV AC looped

power network. On the basis of meeting its own needs, the clean energy in the North

Africa will be delivered to other regions. UHV AC power grid, covering all countries in

the region from east to west, will be formed with improving the highest voltage level to

1000 kV. East Africa and South Africa will build 765 kV AC power grids. East Africa

and South Africa will be interconnected through multiple 500 kV AC lines to promote

the comprehensive development and utilization of mineral resources and clean energy

resources. West Africa and Central Africa will build 765 kV AC power grids as a

platform to optimize the allocation of clean energy resources in this region. Western

Europe and Southern Europe will build 800 / 660 kV flexible DC power grid based on

strengthened 400 kV AC power grids.

50

The Belt and Road Power Grid Interconnection Plan

The energy interconnection plan of countries or regions along the channel are shown in

Figure 3.12.

Europe

West Asia

North Africa

South Asia

West Africa

East Africa

1100 kV DC

800 kV DC

660 kV DC

500 kV DC

1000 kV AC

750 kV AC

500 kV AC

330 kV AC

Central Africa

S

outh Afr

i

ca

Figure 3.12 Interconnection Plan of the China-Indian Ocean-Africa-Mediterranean

Sea Channel

51

The Belt and Road Power Grid Interconnection Plan

3.7 China-Indochina Peninsula Channel and South Paciﬁc Channel

Under the framework of the China-ASEAN community of shared future, the China-

Indochina Peninsula Economic Corridor links China Pearl River Delta Economic Circle

with the Indochina Peninsula, and extends to the Oceania via the South Pacific Ocean.

The China-Indochina Peninsula Channel and the South Pacific Channel are important carriers

for China and ASEAN to expand cooperation fields and improve cooperation level.

•

ꢀ The development of clean energy contributes

to transforming resource advantages into

economic advantages.

ꢀ Regional economic and trade cooperation

has been upgraded and energy cooperation

enjoys a sound foundation.

•

ꢀ Economic and social development maintains

stable, and the demand for power and energy

ꢀ Innovate the co-development of Electricity,

Mining, Metallurgy, Industry and Trade to

promote regional comprehensive economic

partnership.

grow rapidly.

•

ꢀ Clean energy resources are abundant,

•

especially hydropower, but the seasonality is

ꢀ Promote cross-border interconnection

obvious.

to achieve power complementation.

•

ꢀ Southeast Asia is rich in mineral resources and

has the conditions for intensive development.

•

ꢀ Bilateral electricity trade is taking shape.

The channel gives full play to the geographical advantage of

Southeast Asia by connecting China in the north and Oceania

in the south. It improves the resources allocation capability

of power grid, transmitting power from clean energy bases in

China and Southeast Asia to load centers, so as to expand

the scope of clean energy consumption and promote

regional green and low-carbon development.

3.7.1 Development Foundation

Regional economic and trade cooperation has been upgraded and energy

cooperation enjoys a sound foundation. China is ASEAN’s largest trading partner and

ASEAN is China’s third largest trading partner. With the launch of the negotiations on

the economic cooperative partnership between ASEAN and China, Australia and other

countries, regional cooperation has reached new level. “10+1” is moving towards “10+6”

with closer economic and trade relations.

Economic and social development maintains stable, and the demand for power

and energy grow rapidly. Southeast Asia is a key hub of the China-Indochina Peninsula

Channel and South Pacific Channel. In 2015, its economic growth rate was 5%, higher

than the world average. The electricity consumption was about 800 TWh, and the per

capita electricity consumption was 1,250 kWh. There are still about 65 million people without

electricity access. At present, the energy system highly dependent on fossil fuels is faced with

social and environmental challenges, and regional clean energy development is imperative.

52

The Belt and Road Power Grid Interconnection Plan

Clean energy resources are abundant, especially hydropower, but the seasonality

is obvious. Hydropower resources are mainly distributed in southwest China, Mekong River,

Irrawaddy River, and Salween River Basin on the Indochina Peninsula, and Kalimantan Island,

with obvious seasonal feature. Solar energy resources are mainly distributed in Australia.

Southeast Asia is rich in mineral resources and has the conditions for intensive

development. Kalimantan is rich in coal, natural gas, bauxite and iron ore resources, with

about 2.07 billion tons of bauxite reserves. Since 2014, the Indonesian government has

implemented the policy of mineral processing instead of mineral export. Kalimantan has

the conditions to become an integrated center with minerals, smelting and ports.

Bilateral power trade is taking shape. By the end of 2017, Southeast Asia had

exchanged about 51.7 TWh power with Yunnan and Guangxi province in China. And

5.5 GW power was exchanged in ASEAN in 2017. Among the existing cross-border

interconnection lines, there are seven 500 kV AC lines (1 line between China and

Myanmar, 6 lines between Laos and Thailand), and the rest are 230 kV and below.

The electricity consumption and installed capacity of countries or regions along the

channel are shown in Figure 3.13.

800 TWh

25%

Installed capacity

in 2015: 210 GW

2015

Southeast Asia

270 TWh

32%

Electricity Consumption in 2015

Installed capacity

in 2015: 78 GW

Proportion of Clean Energy

Proportion of Thermal Power

2015

Oceania

Figure 3.13 Electricity consumption and installed capacity of the China-Indochina

Peninsula Channel and South Paciﬁc Channel

53

The Belt and Road Power Grid Interconnection Plan

3.7.2 Development Strategy

The development of clean energy contributes to transforming resource

advantages into economic advantages. Priority will be given to the development

of hydropower in the Irrawaddy River, Salween River and Mekong River Basin on the

Indochina Peninsula and Kalimantan Island. Clean energy resources such as solar

power on Kalimantan Island, wind power on the coast of Indochina Peninsula and

geothermal energy in Indonesia should be orderly developed. The Malay Archipelago

will realize the orderly development and outbound transmission of hydropower in

eastern Malaysia and wind power in northern Philippines, transforming their resource

advantages into economic advantages.

01

Innovate the co-development of Electricity, Mining, Metallurgy, Industry and

Trade to promote regional comprehensive economic partnership. Through the

co-development of Electricity, Mining, Metallurgy, Industry and Trade, the advantages

of energy resources in Kalimantan Island will be brought into full play. The

development path of industrial intensification, clean energy and diversified energy

exports will be taken to promote sub-regional cooperation and drive economic

development.

02

03

Promote cross-border interconnection to achieve power complementation.

It is important to speed up the upgrading of power grids and the power grid

interconnection between Indochina Peninsula and Southwest China, the Malay

Archipelago and Australia, to address power shortage, reduce the population without

electricity access, and obtain interconnection benefits from power complementation,

so as to ensure economic and social development with clean and green power.

54

The Belt and Road Power Grid Interconnection Plan

3.7.3 Interconnection Plan

The channel gives full play to the geographical advantage of Southeast

Asia by connecting China in the north and Oceania in the south. It improves

the resources allocation capability of power grid, transmitting electicity

from clean energy bases in China and Southeast Asia to load centers, so

as to expand the scope of clean energy consumption and promote regional

green and low-carbon development.

Power Supply and Demand

By 2050, the electricity consumption and installed capacity of Southeast Asia will reach

3.2 PWh and 1.2 TW, of which clean energy accounts for 72%.

Clean Energy Base Development

In terms of solar power, solar power base in northwest Australia will be built, with

installed capacity of 40 GW. In terms of hydropower, hydropower bases in Indochina

Peninsula and Kalimantan Island will be built, with installed capacity of 120 GW and 40

GW respectively.

Grid Interconnection Plan

Tans-regional and cross-border interconnection: several 660~ 800 kV DC

transmission projects and back-to-back projects between China and Myanmar, China-

Laos, China-Vietnam will be built, with power exchange capacity of 26 GW. China’s clean

energy resources and consumption market will be used to address power shortage

in Indochina Peninsula in the short term and to ensure power supply and outbound

transmission in Indochina Peninsula in the long run. DC transmission line between

Australia and Indonesia will be built to realize power grid interconnection between

Oceania and Asia. The annual electricity trade will reach about 150 TWh.

55

The Belt and Road Power Grid Interconnection Plan

Key regions or countries: By 2050, Southeast Asia will build a unified power grid.

Countries on the Indochina Peninsula will construct UHV AC power grid covering

major clean energy bases and load centers in Cambodia, Laos, Myanmar, Thailand

and Vietnam, so as to meet the demand of power transmission and multi-energy

complementation among relevant countries. The Malay Archipelago will build three 500

kV AC power grids in western, central and eastern regions. In Southeast Asia, four inter-

regional and cross-sea interconnection channels will be built, such as between Indochina

Peninsula and Sumatra Island, between Kalimantan Island and Indochina Peninsula, Java

Island and Kalimantan Island-the Philippines. Three trans-regional and intercontinental

interconnection channels from Southeast Asia to China in the north, to Bangladesh and India

in the west and to Australia in the south will be built. By doing so, a development pattern

featuring close interconnection within the region and power complementation will be formed.

The energy interconnection plan of countries or regions along the channel are shown in

Figure 3.14.

800 kV DC

660 kV DC

China

500 kV DC

1000 kV AC

765/750 kV AC

500 kV AC

DC Back-to-back

Indochina Peninsula

Kalimantan Island

Australia

Figure 3.14 Interconnection Plan of the China-Indochina Peninsula Channel and

South Paciﬁc Channel

56

4

Key

Interconnection

Projects

Key Interconnection Projects

4.1 New Eurasian Land Bridge Channel

In 2035, Kazakhstan-China and Kazakhstan-Germany 800 kV DC projects will be built,

with transmission capacity of 16 GW and total investment of about 11.8 billion USD.

In 2050, Kazakhstan-Germany 800 kV DC projects will be built, with transmission

capacity of 8 GW and total investment of about 6.7 billion USD. Project investment is

shown in Table 4.1.

Table 4.1 Key Interconnection Projects of New Eurasian Land Bridge Channel

Unit: km, kV, MW, billion USD

Route Cross-sea Voltage

Expected

commission

Key Projects

Capacity

8,000

Investment

5.6

Length

Level

Ekibastuz, Kazakhstan-Central China 4,000

0

800

2035

Aktyubinsk, Kazakhstan-Munich,

3,500

0

800

8,000

6.2

Germany

Kostanay, Kazakhstan-Nuremberg,

3,900

8,000

2050

6.7

Germany

Moscow

Berlin

Warsaw

Urumqi

New Eurasian Land

Bridge Channel

Xi'an

2035 2050

Transmission capacity

GW

Transmission capacity

GW

16

8

Total investment

billion USD

11.8

6.7

58

Key Interconnection Projects

4.2 China-Mongolia-Russia Channel and Northeast Asia Channel

In 2035, Russia-Japan, ROK and DPRK, Russia-China, Mongolia-China, China-Japan,

ROK and DPRK 500~ 800 kV DC projects will be built, with transmission capacity of

59.8 GW and total investment of 33.9 billion USD.

In 2050, Mongolia-China, Russia-China, Russia-Japan, China-Japan, ROK and DPRK

800 kV DC projects will be built, with additional transmission capacity of 48 GW and

total investment of 34.5 billion USD. Project investment is shown in Table 4.2.

Table 4.2 Key Interconnection Projects of China-Mongolia-Russia Channel and

Northeast Asia Channel

Unit: km, kV, MW, billion USD

Route Cross-sea Voltage

Expected

commission

Key Projects

Capacity

2,000

Investment

0.7

Length

Level

Sakhalin, Russia-Hokkaido, Japan

300

40

500

2025

2035

Khabarovsk, Russia-Chongjin,

DPRK-Daegu, ROK

2,300

0

800

8,000

4.1

Sakhalin, Russia-Tokyo, Japan

Mongolia-Tianjin, China

2,000

1,500

1,700

2,700

80

0

800

660

800

8,000

4,000

8,000

2035

4.3

1.7

3.6

4.5

Mongolia-Shandong, China I

Lena River, Russia-Hebei, China

0

Weihai, China-Incheon and

Goseong, ROK-Matsue, Japan

830

500

0

500

800

2,000

3,000

750

2035

3

Liaoning, China-Pyongyang,

DPRK-Seoul, ROK

0.9

0.3

8.2

Liaoning, China- DPRK Yunfeng

Back-to-back Project

0

Shandong, China-Busan, ROK-

Kyoto, Japan

2,000

710

8,000

Liaoning, China-Seoul, ROK I

Liaoning, China-Seoul, ROK II

Mongolia-Shandong, China II

750

0

660

800

4,000

8,000

2035

2050

1.3

3.7

1,900

Lena River, Russia-Shandong,

China

2,700

0

1400

0

800

8,000

2050

4.5

12

Shandong, China-Fukuoka, Japan 1,600

Eastern Inner Mongolia-Kaesong,

1,600

3.5

DPRK-Gwangju, ROK

Jilin, China-Osaka, Japan

2,000

2,700

210

230

800

8,000

2050

5.1

5.8

Okhotsky, Russia-Nagano, Japan

59

Key Interconnection Projects

4.3 China-Central Asia-West Asia Channel

In 2035, Saudi Arabia-Turkey-Bulgaria 800 kV DC project and China-Kyrgyzstan

DC back-to-back project will be built, with transmission capacity of 11 GW and total

investment of 5.7 billion USD.

In 2050, a new Saudi Arabia-Turkey 800 kV DC project and Turkmenistan-Afghan DC

back-to-back project will be built, with additional transmission capacity of 10 GW and

total investment of 4.9 billion USD. Project investment is shown in Table 4.3.

Table 4.3 Key Interconnection Projects of China-Central Asia-West Asia Channel

Unit: km, kV, MW, billion USD

Route

Length

Cross-sea Voltage

Expected

Commission

Key Projects

Capacity

3,000

Investment

0.4

Length

Level

Kyrgyzstan-Xinjiang, China DC

Back-to-back

0

2,800

0

750

2035

Al Qaysumah, Saudi Arabia-

Istanbul, Turkey-Haskovo,

Bulgaria

0

800

8,000

5.3

Turkmenistan-Afghanistan DC

Back-to-back

0

500

800

2,000

8,000

2050

0.2

4.7

Hail, Saudi Arabia-Ankara, Turkey 2,200

Almaty

Tashkent

Ankara

Urumqi

Tehran

2035 2050

China-Central Asia-West

Asia Channel

Transmission capacity

GW

11

10

Total investment

billion USD

5.7

4.9

60

Key Interconnection Projects

4.4 Bangladesh-China-India-Myanmar Channel

In 2035, China-Myanmar-Bangladesh 660 kV three-terminal DC project will be built, with

transmission capacity of 4 GW and total investment of 1.6 billion USD.

In 2050, Myanmar-India and China-India 800 kV DC projects will be built, with additional

transmission capacity of 24 GW and total investment of 11.1 billion USD. Project

investment is shown in Table 4.4.

Table 4.4 Key Interconnection Projects of Bangladesh-China-India-Myanmar Channel

Unit: km, kV, MW, billion USD

Route

Length

Cross-sea Voltage

Expected

commission

Key Projects

Capacity

4,000

Investment

1.6

Length

Level

Baoshan, China-Mandalay,

Myanmar-Chattogram,

Bangladesh

1,150

0

660

2035

Myitkyina, Myanmar-Lucknow,

India

2,000

1,600

2,000

0

800

8,000

2050

3.8

3.5

3.8

Gongbujiangda, China-

KJabalpur, India

Duoxiong, China-Kolkata,

India

0

Bangladesh-China-

India-Myanmar Channel

2035 2050

Kunming

Dhaka Mandalay

Bangalore

Transmission capacity

GW

4

24

Total investment

billion USD

1.6

11.1

61

Key Interconnection Projects

4.5 China-Pakistan Channel

China and Pakistan have started construction of Matiari-Lahore 660 kV DC project in

Pakistan with transmission capacity of 4 GW and total investment of 1.7 billion USD,

which is expected to be completed in 2021.

In 2035, China-Pakistan 660 kV DC project will be built, with transmission capacity of

4 GW and total investment of 1.5 billion USD. Total investment of this channel by 2035 is 3.1

billion USD.

In 2050, China-Pakistan 800 kV DC project will be built, with transmission capacity of

8 GW and total investment of 3.8 billion USD. Project investment is shown in Table 4.5.

Table 4.5 Key Interconnection Projects of China-Pakistan Channel

Unit: km, kV, MW, billion USD

Route

Length

Cross-sea Voltage

Expected

Commission

Key Projects

Capacity

4,000

Investment

1.7

Length

Level

Matiari, Pakistan-Lahore,

Pakistan

878

0

660

2021

Xinjiang, China-Nowshera,

Pakistan

1,000

2,000

0

600

800

4,000

8,000

2035

2050

1.5

3.8

Xinjiang, China-Lahore, Pakistan

China-Pakistan Channel

Osh

2035 2050

GwadarPort

Transmission capacity

GW

8

Total investment

billion USD

3.1

3.8

62

Key Interconnection Projects

4.6 China-Indian Ocean-Africa-Mediterranean Sea Channel

2035

In 2035, Morocco-Portugal, Algeria-France, Tunisia-Italy and other 500~ 800 kV DC

projects will be built, with transmission capacity of 19 GW and total investment of 13.5

billion USD, realizing export of solar energy in North Africa. Saudi Arabia-Egypt, Saudi

Arabia-Rakistan 500~ 800 kV DC projects will be built, with transmission capacity of

19 GW and total investment of 10.5 billion USD, realizing export of solar energy in West

Asia. Ethiopia-Saudi Arabia 660 kV DC and Ethiopia-South Africa 800 kV DC projects

will be built, with transmission capacity of 12 GW and total investment of 6.7 billion

USD, realizing export of hydropower in East Africa. Cameroon-Nigeria and DRC-Guinea

660~ 800 kV DC projects will be built, with transmission capacity of 24 GW and total

investment of 15.6 billion USD, realizing export of hydropower in Central Africa.

The export capacity

of solar energy in

North Africa is

GW

19

total investment

billion USD

13.5

The export capacity

of solar energy in

West Asia is

In 2050, Morocco-Spain, Algeria-France-Germany, Egypt-Greek-Italy 660~ 800 kV DC

projects will be built, with additional transmission capacity of 24 GW and total investment

of 27.7 billion USD, realizing export of solar energy in North Africa. Saudi Arabia-

Egypt, Oman-India, Iran-Pakistan 660~ 800 kV projects will be built, with additional

transmission capacity of 16 GW and total investment of 13.2 billion USD, realizing

export of solar energy in West Asia. Ethiopia-Egypt 800 kV DC project will be built, with

additional transmission capacity of 8 GW and total investment of 3.7 billion USD. DRC-

Nigeria and Guinea 800~ 1100 kV DC projects will be built, with transmission capacity

of 58 GW and total investment of 40.7 billion USD, realizing export of hydropower in

Central Africa. Project investment is shown in Table 4.6.

GW

19

total investment

billion USD

10.5

The export capacity

of hydropower in

East Africa is

GW

12

total investment

billion USD

6.7

The export capacity

of hydropower in

Central Africa is

GW

24

total investment

billion USD

15.6

2050

±660~±800 kV DC ±660~±800 kV DC ±800 kV DC

±800~±1100 kV DC

North Africa solar power

exportation project with a

new transmission capacity of

West Asia solar power

East Africa hydropower

exportation project with a

Central Africa hydropower

exportation in large scale with a

exportation project with a

new transmission capacity of new transmission capacity of transmission capacity of

GW

GW GW GW

24

16

8

58

total investment

billion USD

total investment

billion USD

total investment

billion USD

27.7

13.2

3.7

40.7

63

Key Interconnection Projects

Table 4.6 Key Interconnection Projects of China-Indian Ocean-Africa-Mediterranean Sea Channel

Unit: km, kV, MW, billion USD

Route Cross-sea Voltage

Expected

Investment

Commission

Key Projects

Capacity

Length

Level

Tangier, Morocco-Faro, Portugal

Laghouat, Algeria-Toulouse, France

Remada, Tunisia-Rome, Italy

260

200

500

3,000

8,000

2035

1.2

7.9

4.4

1,400

1,300

750

800

200

800

Medina, Saudi Arabia-Tabuk, Saudi Arabia-

Cairo, Egypt

1,300

0

500

3,000

2035

1.2

Al Obailah, Saudi Arabia-Hyderabad, Pakistan 2,200

Sweihan, United Arab Emirates-Jaipur, India 2,300

Addis Ababa, Ethiopia-Riyadh, Saudi Arabia 2,000

100

40

0

800

660

800

660

800

660

800

660

8,000

4,000

8,000

4,000

8,000

4,000

8,000

4,000

2035

2030

2050

4.6

4.7

2.2

4.5

1.5

7.4

2.3

4.4

2

Gibe, Ethiopia-Johannesburg, South Africa

Cameroon-Osogbo, Nigeria

2,800

1,100

4,500

2,000

2,200

1,800

0

DRC- Guinea,Kerouane-Guinea,Linsan

DRC-Lagos, Nigeria

0

DRC-Zambia,Lubumbashi-Zambia,Lusaka

Zag, Morocco-Madrid, Spain

0

30

Ouargla, Algeria-Lyon, France-Frankfurt,

Germany

2,400

1,700

840

960

800

8,000

2050

10.3

10.4

Mersa Matruh, Egypt-Athens, Greece-

Lecce,Italy

Zayed, Egypt-Adana, Turdey

Tabuk, Saudi Arabia-Cairo, Egypt

Sohar, Oman-Badoda, India

Fasa, Iran-Khuzdar, Pakistan

Guba, Ethiopia-Aswan, Egypt

DRC-Benin City, Nigeria

1,500

700

0

660

800

660

800

1100

800

4,000

8,000

4,000

8,000

10,000

8,000

2050

2040

2050

2.1

1.3

10.2

1.7

3.7

3.8

5.4

5

2,300

1,400

1,900

2,000

3,800

3,400

6,500

4,000

4,500

2,800

1000

0

DRC-Cape Down, South Africa

DRC-Bloemfontein, South Africa

DRC-Zag, Morocco

0

9.4

5.6

7

DRC- Addis Ababa, Ethiopia

DRC-Boke, Guinea

0

Republic of Congo-Kumasi, Ghana

0

4.5

64

Key Interconnection Projects

4.7 China-Indochina Peninsula Channel and South Paciﬁc Channel

In 2035, China-Myanmar, China-Laos, and China-Vietnam 660 kV DC and back-to-back

projects will be built, with transmission capacity of 14 GW and total investment of 4.3

billion USD.

In 2050, China-Laos, China-Vietnam and Australia-Indonesia 660~ 800 kV DC projects

will be built, with additional transmission capacity of 16 GW and total investment of 9.2

billion USD. Project investment is shown in Table 4.7.

Table 4.7 Key Interconnection Projects of China-Indochina Peninsula Channel and

South Paciﬁc Channel

Unit: km, kV, MW, billion USD

Route Cross-sea Voltage Transmission Expected

Key Projects

Investment

1.8

Length Length

Level

Capacity

Commission

Xishuangbanna, China-Ho Chi Minh

City, Vietnam

1,600

0

660

4,000

2035

Kengtung, Myanmar-Rangoon-

Bangkok, Thailand

660

4,000

2035

1.8

China-Myanmar DC Back-to-back

China-Vietnam DC Back-to-back

China-Laos DC Back-to-back

0

500

660

800

660

2,000

4,000

8,000

4,000

2035

2050

0.2

1.4

3.6

4.2

0

Liupanshui, China-Hanoi, Vietnam

840

0

Zhengzhou, China- Phôngsali, Laos 1,700

0

Australia-Bali, Indonesia

1,500

1000

2035 2050

Fuzhou

Kunming

Vientiane

Nanning

Hanoi

Transmission capacity

GW

14

16

China-Indochina

Peninsula Channel

Singapore

Total investment

billion USD

4.3

9.2

South Paciﬁc Channel

65

Key Interconnection Projects

Key Interconnection projects of Region or Countries along the “6+3” Channels in 2035 and 2050

are shown in Figure 4.1 and Figure 4.2 respectively.

500kV DC Project in 2035

660kV DC Project in 2035

800kV DC Project in 2035

DC Back-to-back Project

Figure 4.1 Key Interconnection Projects on the Belt and Road in 2035

500kV DC Project in 2035

500kV DC Project in 2050

660kV DC Project in 2035

660kV DC Project in 2050

800kV DC Project in 2035

800kV DC Project in 2050

1100kV DC Project in 2050

DC Back-to-back Project

Figure 4.2 Key Interconnection Projects on the Belt and Road in 2050

66

5

Comprehensive

Value of the Belt

and Road Energy

Interconnection

Comprehensive Value of the Belt and Road Energy Interconnection

5.1 Economic Value

Meet the demand by clean energy

Building the Belt and Road Energy Interconnection will promote energy transition, and

01

drive the realization of “Two Replacements”, so as to meet the energy demand in a

clean, low-carbon and efficient way. The proportion of clean energy in primary energy

will increase from 13.6% in 2015 to 69% in 2050, and clean energy will account for over

80% of the total installed capacity. The energy mix will gradually shift from consumption

dominated by fossil fuels and traditional biomass to that dominated by clean energy,

serving the sustainable development of countries along the route.

Promote infrastructure construction

Building the Belt and Road Energy Interconnection will promote large-scale

construction of power infrastructure. By 2050, the installed capacity of large-scale clean

energy bases will exceed 5.7 TW, and the length of key cross-border interconnection

projects will exceed 120,000 km, effectively driving the rapid development of relevant

industries such as transportation, communications and advanced manufacturing, and

upgrading the infrastructure of the countries along the route.

02

68

Comprehensive Value of the Belt and Road Energy Interconnection

Facilitate international cooperation on productivity

Based on high complementarity in terms of resources and industrial structure,

countries along the route have huge potential for cooperation in such fields as resource

development, market expansion, port connectivity, industrial chain cooperation

and industrial park construction. Co-development of electricity, mining, metallurgy,

industry and trade with the construction of industrial park as its core, will form a

complete industrial chain from resource exploitation to smelting and processing,

effectively expanding international cooperation in economy, trade and productivity,

and promoting integration and globalization of investment, finance, production,

technology, information, goods, services, and human capital. By building China-Indian

Ocean-Africa-Mediterranean Sea Channel Energy Interconnection and driving the

development of modern industrial systems in Africa with electricity as the engine, the

share of industrial value-added in GDP will rise from 27% in 2015 to 45% in 2050.

03

04

Stimulate economic growth

Huge commercial value will be created by building the Belt and Road Energy

Interconnection with large investment. By 2050, 27 trillion USD will have been invested in

power sources and grids on the “6+3” channels, creating 200 million jobs. Cross-border

electricity power trade will expand to more than 2 PWh, promoting the capital market,

realizing industry and technology revolution, and accelerating the development of upstream

and downstream industries such as materials, information and electric vehicles.

69

Comprehensive Value of the Belt and Road Energy Interconnection

5.2 Social Value

Accelerated development of clean energy resources along the route will ensure

energy supply. By optimizing the allocation in a wide area, significant benefits will

be obtained from differences in time-zone, season, electricity price and resource,

so as to reduce the energy cost and meet the power demand of population without

electricity access. By building the China-Indochina Peninsula Channel and South

Pacific Channel Energy Interconnection to meet power demand of Southeast Asia

with clean and green power, Southeast Asia will basically achieve universal electricity

access after 2030. By building the China-Indian Ocean-Africa-Mediterranean Sea

Channel Energy Interconnection, the electricity access rate will be improved to 90%

in Africa by 2050. By building the Bangladesh-China-India-Myanmar Channel Energy

Interconnection, the problem of over 200 million people living without electricity will

be solved by 2050.

Solve the

electricity

access

issue

Construction and upgrading of electricity infrastructure will turn the advantages

of clean energy resources into economic advantages, narrow the gap between

the rich and the poor in the region, and achieve common prosperity and peaceful

development. It will vigorously promote poverty alleviation through providing more

channels for the poorest people in remote areas to increase their income, and

create jobs. By building the Bangladesh-China-India-Myanmar Channel Energy

Interconnection to deliver hydropower from Myanmar to Bangladesh and India, the

annual electricity trade will reach 60 TWh, and the electricity sales will reach about 2.4

billion USD.

Alleviate

poverty

and

increase

incomes

By building the Belt and Road Energy Interconnection, countries can participate in

global energy cooperation in a fairer and more effective way. Developing countries,

with their advantages of clean energy resources, will have more opportunities to

participate in the global energy industry development, while developed countries will

have larger market and stronger momentum with capital and technology advantages.

Strengthen

balanced

development

Building the Belt and Road Energy Interconnection contributes to green and low-

carbon transition, so that people will have cleaner air and water, safer food, better

social security and medical and health services, more comfortable living conditions

and more beautiful environment. It will reduce diseases and deaths caused by

environmental pollution, improve people’s health conditions.

Improve

health

conditions

70

Comprehensive Value of the Belt and Road Energy Interconnection

5.3 Environmental Value

Address the challenge

of climate change

01

02

Building the Belt and Road Energy Interconnection to accelerate

the large-scale and high efficient development and utilization

of clean energy fully aligns with the Paris Agreement. This

platform is conducive to achieve “decarbonization” of energy

structure, effectively control carbon dioxide emissions, realize the

Intended Nationally Determined Contributions, and provides a

systematic solution featuring advanced technology, economical

competitiveness, high efficiency and mutual benefits to limit the

global average temperature rise to well below 2°C and as close

as possible to 1.5°C.

Promote ecological and

environmental governance

Building the Belt and Road Energy Interconnection enables

everyone to access clean, safe, cheap and efficient energy.

Eliminate the impact of energy production and consumption

on climate change on the root, and reduce the emission of air

pollutants. Restore forest vegetation, combat desertification, and

reduce water consumption and pollution. Mitigate the impact

of solid waste, conserve marine ecology, and contribute to

biodiversity conservation. Resolve food crisis and establish a new

pattern of coordinated development between man and nature.

71

Comprehensive Value of the Belt and Road Energy Interconnection

5.4 Political Value

Building the Belt and Road Energy Interconnection will facilitate clean

energy sharing, power grid interconnection and cross-border and

intercontinental transactions, and shift countries from competition

over fossil fuels to sharing and cooperation on clean energy. It will

also enhance policy coordination, strengthen political mutual trust

and expand the breadth and depth of energy cooperation, so as to

jointly build a community of energy cooperation featuring extensive

consultation, common governance, mutual benefit and shared future.

Enhance political

mutual trust

Building the Belt and Road Energy Interconnection will further

strengthen international communication, deepen integration of

interests, and turn advantages in political mutual trust, geographical

proximity and economic complementarity into advantages in

practical cooperation and sustained economic growth. It will

promote regional cooperation in more fields at a higher level, and

move south-south and north-south cooperation toward common

development and common prosperity of all countries.

Raise the

cooperation level

Building the Belt and Road Energy Interconnection requires to accelerate clean and

low-carbon energy transition in countries or regions along the route in the principle

of common consultation, joint contribution and shared benefits, to realize large-scale

development, wide area allocation and efficient utilization of clean energy. It is conducive

to the in-depth integration of energy markets and policy coordination. It will encourage

countries to foster regional cooperation with a broader scope and at a higher level, so

as to build a new cooperation framework that is open, inclusive, balanced and mutually

beneficial. By doing so, everyone will enjoy a better future with more energy, more

comfortable life, better living environment and more harmonious society. Countries are

moving towards a community of shared interests, destiny and responsibility featuring

political trust, economic integration and cultural inclusiveness.

72