It is said that North Korea's current scarcity of power supply is chiefly attributable to the falling rate of operation due to the dilapidation of the facilities, insufficient supply of coals for thermal power generation and the use of low-heat coals. The situation appears to have been worsening due to much loss in the power transmission. The worn-out transmission facilities and the backwardness in the energy management technology also seem to blame.

The Korean Peninsula Energy Development Organization (KEDO) is currently building 2 units of 1milllion kw-class, light-water reactor in Kumho, Shinpo-city. North Hamkyung Province in return for North Korea's promise not to develop its nuclear power. At present the nation is exerting efforts to build small-sized (smaller than 10,000 kw capacity) power plants whose construction cost is relatively smaller and construction period is shorter.