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Power Sector in Developing Asia: Current Status and Policy Issues

Author

Listed:
  • Hong, Jong Ho

    (Seoul National University)

  • Kim, Changhun

    (Korea Energy Economics Institute)

  • Shin, Heeyoung

    (Korea Development Institute)

Abstract

We examine the current status and future prospects of the electricity sectors and key policy issues in the People’s Republic of China (PRC), India, Japan, and the Republic of Korea. Fuel mix and energy efficiency are key to providing stable, affordable power, while curtailing future emissions in the PRC. In India, power plants cannot operate efficiently because of problems in the coal industry; transmission losses also need to be immediately addressed. In Japan, nuclear accounted for 27% of output in 2009 which fell to 18% following the Fukushima Daiichi accident. Currently, only two reactors are in operation. Japan aims to diversify its generation portfolio by expanding renewables. In the Republic of Korea, the average electricity price does not recover production costs which may have led to overconsumption. The budget for renewables should increase two-fold in the next 2 to 3 years but has instead decreased by 15% compared to 2012. The PRC, India, and the Republic of Korea plan to build more nuclear power plants. The cost of the entire life cycles of those plants needs to be analyzed, and the impacts of nuclear power on current and future generations must be considered in full.

Suggested Citation

  • Hong, Jong Ho & Kim, Changhun & Shin, Heeyoung, 2014. "Power Sector in Developing Asia: Current Status and Policy Issues," ADB Economics Working Paper Series 405, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0405
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    Citations

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    Cited by:

    1. Le, Thai-Ha & Chang, Youngho & Park, Donghyun, 2017. "Energy demand convergence in APEC: An empirical analysis," Energy Economics, Elsevier, vol. 65(C), pages 32-41.
    2. Yoonhwan Oh & Jungsub Yoon & Jeong-Dong Lee, 2016. "Evolutionary Patterns of Renewable Energy Technology Development in East Asia (1990–2010)," Sustainability, MDPI, vol. 8(8), pages 1-24, July.

    More about this item

    Keywords

    power sector; government policy; energy efficiency; nuclear; renewables;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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