South Korea to Start Talks on Importing Russian Power

By Shinhye Kang

Feb. 19 (Bloomberg) -- Korea Electric Power Corp., the country’s biggest utility, will enter into negotiations to import electricity from Russia’s OAO Inter RAO UES to secure stable supplies.

The power may be transmitted via North Korea, the Seoul- based utility said today in an e-mailed statement. The companies will conduct a feasibility study over the next three years.

Demand for electricity in Asia’s fourth-largest economy reaches a peak in summer as warm weather boosts the use of air- conditioning. Consumption rose to a record 62.8 million kilowatts on July 15. Capacity was 68.1 million kilowatts.

“South Korea can save costs by buying power from Russia during the peak power-demand season rather than build new plants,” said Kim Jin Woo, a senior research analyst at Korea Energy Economics Institute.

South Korea also seeks to import $90 billion of natural gas from Russia via North Korea, with which it shares one of the world’s most heavily fortified borders, to reduce its reliance on more expensive cargoes arriving by sea.

To contact the reporter on this story: Shinhye Kang in Seoul at skang24@bloomberg.net.