Page:NATIONAL INTELLIGENCE SURVEY 18; CZECHOSLOVAKIA; THE ECONOMY CIA-RDP01-00707R000200110014-8.pdf/15

 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110014-8

They are found almost entirely in the Morava-Oder corridor. Annual production has declined steadily since 1960, as existing deposits have been depleted. Amounting to only about 800 million cubic meters in 1972 (62% of 1960 production), output of natural gas was expected to fall to about 500 million cubic meters by 1975. Nevertheless, consumption continues to rise as a result of increased imports from the U.S.S.R., made possible by the completion in 1967 of a natural gas pipeline from the western Ukraine to Zlate Moravce. An agreement between the U.S.S.R. and Czechoslovakia in 1968 called for expanding the pipeline system and for increasing deliveries of natural gas. Another agreement between the two countries in December 1970 provided for a large-diameter pipeline to transport Soviet gas through Czechoslovakia to East Germany, West Germany, Austria, and Italy. With the completion of the line (probably in late 1973), Czechoslovakia will be able to draw up to 1.8 billion cubic meters of gas in transit fees. Total imports of natural gas—all from the U.S.S.R.—rose from 300 million cubic meters in 1967 to 1.9 billion cubic meters in 1972.

c. Electric power

Czechoslovakia ranks third among the Eastern European Communist countries in installed capacity and production of electric power, following East Germany and Poland. On a per capita basis Czechoslovak power production in 1972 of 3,525 kilowatt-hours (kw.-hr.) was exceeded only by that of East Germany. During the 1960's, generating capacity nearly doubled, requiring large capital investments that took more than 10% of total industrial investment for a number of years. The fixed assets of the electric power industry make up about 12% of the industrial total, exceeded only by those of the machine building, coal-mining, and metallurgical industries. At the end of 1972, installed capacity totaled 167 million kilowatts (kw.), and production during the year amounted to 51.4 billion kw.-hr.

Despite rapid growth, the amount of electricity produced still falls short of industrial and other requirements, and there still are frequent disruptions in service. Power shortages have been offset to some extent by imports, which come mainly from Romania and the U.S.S.R. and supply about 10% of total consumption. The exchange of power with other countries is significant only for local and regional areas.

In its effort to meet demand, the power industry has suffered from inconsistent management policies and lags in new construction. In a number of instances defective components and poor workmanship have created problems in bringing new capacity to a stage of reliable operation. Moreover, about one-fourth of the capacity is in older plants that are subject to breakdown and cannot be relied upon to cover baseload requirements. Other problems include excessive plant shutdowns for routine maintenance, improper conversions of boilers to utilize a fuel base of lower grade coal and lignite, shortages of fuel, and breakdowns in the transmission network.

Consumption of electric energy is concentrated the extreme northwestern area and in the vicinities of the large urban areas of Prague, Brno, Plzen, and Ostrava. Industrial consumers, principally the chemical, metallurgical, mining, and manufacturing industries, account for almost three-fourths of total consumption. Almost all households are supplied with electricity, but household consumption amounts to only about 8% of the national consumption. The agricultural, commercial, and transportation sectors of the economy are supplied with enough electricity to meet their basic needs.

Thermal powerplants account for almost 85% of the total installed capacity and provide more than 90% of the total production; hydroelectric facilities contribute the balance. Almost half of the thermal capacity is in the western third of the country, where most of the brown coal is mined. The remainder of the thermal capacity is mainly in the hard-coal region near Ostrava and in the extreme eastern part of the country. Most of the hydroelectric plants are on the Vah and Vltava rivers, which together account for more than three-fourths of the total hydroelectric capacity.

Electric power is transmitted by a well-developed national network that connects all important powerplants and extends off all economically significant areas. The greatest density of transmission facilities is in the northwestern part of the country, where there are large coal mines, industries, and urban areas. The highest voltage transmission lines (400 kv.) are used for joining major consuming and producing centers and importing electricity from the U.S.S.R. The 400-kv. line and 220-kv. connections to East Germany, Hungary, and Poland provide links with the CEMA international power grid.

Plans for the future development of the electric power base call for expanding the present capacity to 14.4 million kw. by the end of 1975 to provide an annual production of 67 billion kw.-hr. The planned increase will be accomplished primarily through construction and expansion of thermal installations, with only minor additions to hydroelectric capacity. Most of the thermal capacity will be installed in the

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110014-8