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"ASIAN ENERGY SECURITY NETWORK DAILY REPORT, Wednesday, August 31st, 2005", EASSNet, August 31, 2005,

Wednesday, August 31st, 2005


1. RFE Energy and LEAP Model

The Nautilus Institute (Kalashnikov, Ognev, Goulidov, “UPDATES ON THE RFE ENERGY SECTOR AND THE RFE LEAP MODEL, AND INPUTS TO AND RESULTS OF RFE FUTURE ENERGY PATHS,” May 13th-16th, Beijing, China) released this report from the Institute’s Asian Energy Security Workshop 2005 in Beijing, China, hosted by the Energy and Environmental Technology Center (EETC) at Tsinghua University in Beijing. The presentation includes a summary of recent trends and events in Russian Far East (RFE) energy development; emergency stockpiling, energy efficiency and district heating trends; and an update of LEAP energy modeling as part of an ongoing Nautilus Institute collaboration.

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2. PRC & Distributed Energy

The Nautilus Institute (Feng, Liwen, China5e, “CHP & DISTRIBUTED ENERGY IN CHINA,” May 13th-16th, Beijing, China) released this report from the Institute’s Asian Energy Security Workshop 2005 in Beijing, China, hosted by the Energy and Environmental Technology Center (EETC) at Tsinghua University in Beijing. PRC Oil Refining. The presentation focuses on the development of CHP in PRC. Advantages and difficulties of distributed energy and examples of PRC’s existing and proposed projects are noted.

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3. Asian Energy Trends

International Energy Agency (N. van Hulst, “THE WORLD ENERGY OUTLOOK AND THE CHALLENGES FOR ASIA,” July 12, 2005) released this presentation by Noe van Hulst. The presentation includes reference scenarios for global and Asian energy trends and an alternative policy scenario for Asian energy trends. Van Hulst concludes that “a truly sustainable energy system will call for faster technology and deployment,” and that, although “more vigorous policies would curb [the] rate of increase in energy demand and emissions significantly,” new policies will not reverse the trend of rising emissions in developing Asia.

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4. ERINA Report

Economic Research Institute for Northeast Asia (ERINA Report, Vol. 65, September 2005) features the 2005 Northeast Asia Economic Conference in Niigata in this September, 2005 edition of its bi-monthly report. Included are articles that emphasize energy cooperation between Russia and the Asia-Pacific region. ERINA’s July, 2005 (ERINA Report, Vol. 64, July 2005) features the 2005 Japan-Russia Energy Forum and contains articles about the Sakhalin Projects and combined cycle power generation in Japan.

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5. PRC Oil Refining

Asia Pulse (“WORK ON LARGE OIL REFINING, ETHYLENE PROJECT STARTS IN NW CHINA,” August 24, 2005, URUMUQI) reported that the foundation stone was laid to the works on a 10 million-ton oil refining and one million-ton ethylene project, the largest oil refining and chemical integrated project of PRC, on August 22 in the Dushanzi City, northwest PRC’s Xinjiang Ugyur Autonomous Region. The Dushanzi oil refining and ethylene project, built by China National Petroleum Corporation (CNPC), is a key part of the strategic energy cooperation between PRC and Kazakhstan and also another symbol project of PRC’s efforts in developing the western part.

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6. Japan Oil Reserves

Agence France Presse (“JAPAN HAS NO PLANS TO TAP STRATEGIC OIL RESERVES: MINISTER,” August 26, 2005) reported that Japan has no plans to draw on its strategic oil reserves in response to the latest price spike, despite the country’s high reliance on energy imports, the government said Friday. “We have not yet come to a situation where we need to draw down on our stocks,” the country’s economy, trade and industry minister, Shoichi Nakagawa, told reporters. Japan had enough oil in its emergency stockpile to last for 170 days, but would only dip into the reserves if there was a shortage of supply, he said.

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7. US-NE Asia Clean Energy

The New Zealand Herald (Michael Richardson,” ‘CLEAN’ PARTNERS BIG ON PLANS BUT SHORT ON DETAILS,” August 26, 2005) reported that the new partnership between the United States and five Asian and Pacific nations to promote clean development has been widely criticized by environmentalists for allegedly undermining the Kyoto Protocol, which makes cuts in carbon dioxide emissions and other global warming gases compulsory for many developed economies. The pact – announced late last month by the US, Australia, PRC, India, Japan and ROK – has also been lambasted for being long on vision and short on detail about how the harmful effects of burning ever more coal, oil, natural gas and other fossil fuels can be reduced without sharply slowing economic growth.

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8. ROK-DPRK Relations

Yonhap News Agency (“SOUTH KOREA LINKS NORTH ENERGY AID TO NUCLEAR PROGRAMME, KEDO PROJECT,” August 25, 2005) DPRK will be eligible for ROK’s massive electricity aid only after it abandons its nuclear weapons program and the international project to construct two light water reactors in the communist state is closed, a top ROK official said on Thursday [25 August]. Unification Minister Chung Dong-young made it clear that Seoul would not pursue the energy aid and the controversial light water reactor program at the same time. His remarks were apparently intended to ease concern that Seoul might endorse Pyongyang’s aspiration to retain the two light water nuclear reactors, whose construction by the Korean Peninsula Energy Development Organization (KEDO) was suspended.

Newsweek (Christian Caryl, “GOING SLOW,” August 29, 2005) reported that this is an extraordinary moment in the relationship between the two Koreas. Last week, for the first time since 1945, DPRK and ROK jointly commemorated their liberation from Japanese colonizers at the end of World War II in Seoul. The DPRK delegation visited the ROK Parliament, another first. The two countries also staged a joint football match where 50,000 spectators chanted, “Unified Korea, Unified Korea.” Good news for the future of peace on the Korean Peninsula? Not necessarily. Nowhere in the lavish speeches and statements of mutual affection was the thorny issue of Kim Jong Il’s nuclear aspirations mentioned.

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9. Solar Markets

The Petroleum Economist (“SUSTAINABLE DEVELOPMENT; SHINE ON,” August 21, 2005) reported that BP made a profit on its solar business last year and the world solar market is growing by 40% a year. But while momentum behind the business is building, the economics of solar power generation continue to depend on state support, reports James Gavin. Solar photovoltaic (PV) power has started to compete on national electricity grids in the most developed solar markets – Japan, Germany and the US, which account for 85% of total installed OECD capacity. Installed capacity in Japan and Germany has risen by an average of more than 40% a year for the past decade.

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10. APEC Meeting on High Energy Costs

Asia Pulse (“APEC WORKING GROUP MEETING FOCUSES ON HIGH ENERGY COSTS,” August 22, 2005) reported that Energy policymakers from the Asia-Pacific Economic Cooperation (APEC) economies began a five-day meeting Monday in the southeastern industrial city of Ulsan to discuss ways of coping with high energy costs, officials said. The meeting of the Energy Working Group (EWG) chaired by John Ryan, an Australian deputy secretary, plan to discuss energy security issues, measures to enhance energy efficiency and sustainable growth amidst rising crude oil prices, according to the Ministry of Commerce, Industry and Energy.

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Produced by the Nautilus Institute.




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