Inner Mongolia as China’s energetic frontier

Abstract

This article presents a study on the development of the basic industry of Inner Mongolia Autonomous Region economy. The author notes the growing role of the IMAR energy complex for providing energy to drivers of the Chinese economy: the Yangtze and Pearl River Deltas, as well as the Jing-Jin-Ji region. While Chinese national environmental policy has been tightening, key trends in the development of the region’s main energy resources have been identified. Decarbonization of the national economy will certainly affect the supply of coal by Inner Mongolia. However, decreasing in the coal demand in eastern regions will be offset by the growing demands of industrial production in the provinces of Central China. The further development of the coal-chemical industry, as well as the conversion of coal into liquid fuel and gas, will also influence the distribution structure of coal. The dynamics and prospects of the power generation, including the supply of excess electricity to nearby and remote provinces, are analyzed. The article particularly notes the role of IMAR energy complex for the economy of neighboring Mongolia. Priorities for the development of renewable energy sources and prospects of gas production are considered. The cross-border factor of the IMAR also plays a role in transformation of the energy landscape in northern China. On the one hand, there is an increasing purchase of Mongolian coal for the needs of the steel industry of Inner Mongolia, and on the other hand, an uncontested supply of Chinese electricity for mining enterprises in southern Mongolia.