Russia a key energy supplier to China

Featured - June 21st, 2012

China’s growing demand for electricity has meant increased co-operation with Russia, which is ramping up energy exports to the world’s second-largest economy in a move towards building stronger ties.

The energy trade is mostly felt in cities near the Russian-Chinese border, which is delineated by the Amur River. Russia utilizes its energy resources to promote economic development in its Far Eastern region. Russia’s largest power exporter, Inter RAO, produces up to 500-kilovolt power while China built subsidiary plants to supply other parts of China with electricity.

Energy ties between the two have grown, with contracts involving 100 billion kilowatt-hours of electricity for the next 25 years between Eastern Energy Co. and State Grid Corp. The Russian company plans to increase exports to China and Siberia, reports the Asahi Shimbun.

China is responding with similar actions, building hydropower plants and thermal power plants. China’s Yangtze Power Co. signed a joint venture with Russian energy company EuroSibEnergo plc to operate the Three Gorges Dam. Russia also exports electricity to South and North Korea. Japan said also to be is also interested in importing electricity from Russia.