Research Report
North Korea's Energy Law Study Ⅲ - Electricity law, Energy Management law, Renewable Energy law
North Korea’s energy policy is characterized by hydroelectric power making up nearly 70% and thermal power accounting for about 30%. Hydroelectric power is heavily dependent on natural conditions such as droughts or floods, resulting in fluctuations in output, making it difficult to ensure stable energy production. Moreover, most of the power plants were either built during the Japanese occupation or with support from the Soviet Union and China, and they have become outdated due to insufficient maintenance and refurbishment.
Since the Kim Jong-un regime took power, there has been an emphasis on renewable energy, and related legislation has been enacted. North Korea has announced plans to increase the share of renewable energy and dramatically boost power production. However, in reality, there is virtually no actual power generation from renewable sources. It can be said that the regime’s shift in policy and legislation regarding renewable energy was more of a political declaration.
North Korea’s power generation structure is weak, but the system that transmits electricity—distribution and transmission—also suffers from outdated equipment, leading to high losses. While power production is already far below demand, a significant amount of electricity is lost during the distribution and transmission process, further reducing the amount of power that reaches factories, enterprises, and households. The aging of production facilities and reduced coal production due to UN economic sanctions have also been cited as disadvantageous factors in energy supply.
After the collapse of the Soviet system and the dissolution of the socialist bloc economy, the supply of crude oil, which was previously provided through barter or clearing trade agreements with socialist countries, was cut off. As a result, North Korea’s current power supply has fallen below 1990 levels and continues to decline. The restrictions on power production and energy supply, which are the foundation of industry, have led to severe energy shortages in factories, enterprises, and households. Consequently, individual households have begun to establish their own energy supply systems, finding ways to supplement the electricity that is supplied for less than four hours per day. This is considered one of the factors that could lead to cracks in North Korea’s single-party rule and is something to keep an eye on in the future.
In a situation where energy and power supply is limited, the main function of North Korea’s energy-related legislation has been focused on energy saving, control, and regulation. This reflects the reality that North Korea’s overall energy production and supply continue to decline.
North Korea’s energy-related laws include the “Electricity Law,” “Energy Management Law,” and “Renewable Energy Law.” The “Electricity Law,” enacted in 1995, has undergone 12 revisions, with increasing emphasis on control and regulation, and expanded conditions for sanctions and punishment. The “Energy Management Law,” enacted in 1998 and revised in 2021, has also been revised in the direction of strengthening sanctions, control, and punishment provisions, such as preventing energy losses and enforcing compliance with standard operating procedures. The “Renewable Energy Law,” enacted in 2013 during the Kim Jong-un regime, is the only one of the three energy laws that was established under his rule. However, it has effectively become obsolete due to the lack of practical application, as there is virtually no renewable energy production in North Korea.
It is true that integrating North Korea’s three energy laws with our energy-related legislation would not be easy, given the characteristics of the energy-related industries. Moreover, considering the purpose of the relevant laws and the characteristics of the socialist economic system, it seems that cooperation in the industrial sector should precede any legal integration. While energy policies in market economies like ours are aimed at revitalizing industries and balancing consumption and production, North Korea places more emphasis on controlling industries, restricting energy use, saving energy, and imposing regulations and penalties. Therefore, it seems reasonable to first support standardization, internationalization, and modernization through cooperation in the energy industry sector, and then proceed with legal integration through corresponding improvements in the legislative field.