Kim Jong Un pursues this energy strategy to keep North Korea afloat

Whether we’re talking about coal or hydroelectric power, the bulk of North Korean energy is destined for industries or military operations. Ordinary North Korean citizens scrape by on cheap solar panels imported from China for their daily energy needs. Some North Korean entrepreneurs are even producing their own solar panels.

All told, North Korea’s energy insecurity is both a key driver and factor in a negotiated settlement over the North’s nuclear weapons. Viral satellite pictures of North Korea at night, which were captured in 2014, revealed a country shrouded in darkness compared to its well-lit neighbors.

North Korea’s broad infrastructure, including its energy complex, could benefit immediately from its neighbor South Korea. Moon Jae-in, South Korea’s president, has expressed interest in economic interactions with the North starting with the Kaesong industrial park. Located inside North Korea just north of the demilitarized zone from South Korea, the Kaesong area includes both North and South Korean workers and is a prominent showcase of economic cooperation between the two nations.

South Korean officials have discussed refurbishing North Korea’s rail system and troubleshooting the North’s problems with electricity generation and distribution. The North’s electricity grid alone would cost tens of billions of U.S. dollars to modernize, according to estimates by Nautilus. Some of the generation and transmission equipment dates back several decades.

“South Korea is very interested in helping North Korea refurbish its infrastructure. Seoul has been waiting for a breakthrough to unlock a wave of interactions between the two countries,” said Abrahamian, a Stanford University Koret fellow. Abrahamian is also the former executive director of Choson Exchange, a Singapore-based nonprofit that supports North Korean entrepreneurs and knowledge-sharing with foreign executives.