Connecting countries to climate technology solutions
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Official Name:

National Designated Entity

Type of organisation:
Ms. Narangaravuu Altangerel
Climate Change Officer
+976 51266288

Energy profile

Mongolia (2014)

Energy profile
Energy profile
Extent of network

There are three separate electricity systems in Mongolia:the Central Energy System, which serves Ulan Bator and surrounding areas, represents the vast majority of all Mongolian electricity supply and is comprised of five coal powered plants and an interconnection with Russia;the Eastern Energy System, which has one combined heat and power plant; andthe Western Energy System, which relies on the importation of electricity from Russia.Apart the Central (CES), West (WES), East (EES), there are is the  Altai-Uliastai (AUES) autonomous energy systems, Dalanzadgad steam power plant and diesel generators with provisional operations installed at small settlements.In Mongolia there are 678,000 households, and nearly 400,000 households are connected to the grid (60 %). Out of 333 counties of 21 provinces, 318 counties are connected to transmission lines.

Renewable energy potential

A recent study by the US National Renewable Energy Laboratory and the Mongolian National Renewable Energy Centre, estimated that Mongolia has potential to generate 2,600 GW of wind, solar, geothermal and hydropower-based energy. This figure represents approximately 25% of total global electricity demand and encapsulates the vast potential of Mongolia for renewables development.Mongolian President Tsakhiagiin Elbegdorj has been lauded internationally for his eco-friendly policies and for his promotion of renewable energy. At the Northeast Asia Renewable Energy Cooperation Forum in November 2012, the President outlined Mongolia's long term goal of exporting renewable energy to China and Russia.Government rhetoric on renewable energy has been strong with authorities claiming that Mongolia can become "the Saudi Arabia of the East, not for coal but for renewable energy."WindWith regard to wind, good sites can be found throughout the country. The most attractive sites are located the South Gobi region, which is alone estimated to contain 300 GW of high quality wind energy potential. The South Gobi also contains some of Mongolia’s largest mines and is well-situated for exports to China.The first commercial wind farm project in Mongolia – a 50 MW Salkhit wind farm outside of the capital Ulaanbaatar – was connected to the electricity grid in 2013 and is now generating electricity. The European Bank for Reconstruction and Development (EBRD) provided debt and equity funding for the project.HydroMongolia's 3,800 streams and rivers, which are located primarily in the northern and western areas of the country, have the potential for the generation of up to 6.4 GW of hydropower.  Currently, Mongolia has approximately 12 MW of hydropower capacity, with an additional 12 MW under construction.Solar"The land of the blue sky" has, in an average year, 270 to 300 'sunny' days. Accordingly, solar potential in the country is quite high, estimated to be 11 GW. There are three solar PV installations in operation:the Naran Plant (5kW);the Noyon plant (200kW); andthe Tsagaanchuluut plant (1kW).One of Mongolia's most successful renewable energy initiatives has been the Solar Gers Project. Under the project, 100,146 herder families have been provided with portable solar energy systems since 1999. The project is jointly funded by the World Bank and Dutch Government and provides a 50% subsidy on the cost of solar systems. The Gobi Desert has been earmarked as a possible location for a large solar PV or concentrated solar plant.Geothermal40 possible geothermal sites have been identified, with projects at Tsenkher, Khujirt and Shargaljuut in the Khangai region deemed the most feasible. There is potential for 45 MW to 900 MW of geothermal power in Mongolia, however Mongolia has not generated power from geothermal resources yet.BiomassThe biomass potential of the country has not been extensively researched, however production from animal manures, particularly in rural areas, is deemed to have potential. There are currently no biofuels or biomass facilities in Mongolia.

Energy framework

On 9 June 2005, the Parliament of Mongolia approved “A National Renewable Energy Programme” for the period 2005-2020, to facilitate the wider use of renewable energy in Mongolia. The Programme’s goals include: a total installed capacity generated by renewable energy power sources of 3-5% by 2010 and 20-25% by 2020 of the total energy production; and a programme for increased decentralised electrification of remote rural villages to provide electricity to 100,000 households by 2010 and all rural families by 2020.A Renewable Energy Law was adopted in 2007. This law sets forth feed-in tariff ranges for renewable energy, categorised by type. Pursuant to the framework established by the Renewable Energy Law, ERA developed and approved the first long term Power Purchase Agreement to be signed between the “Central Regional Electricity Transmission Network” State Owned Stock Company and private investor “Newcom” Co., LTd. Approval of this agreement was the first step to encourage private sector participation in the energy sector.Mongolia ratified the Kyoto Protocol to the United Nations Framework Convention on Climate Change in 1999.The “Building Energy Efficiency Project” (BEEP) started in 2009 to support the Government of Mongolia in enhancing energy efficiency in the wider Mongolian building sector by removing the barriers, including noncompliant and outdated building codes, norms and standards (BCNS). The project is funded by the Global Environment Facility (GEF), the Korean Energy Management Corporation (KEMCO) and UNDP Mongolia. Its goal is the reduction in the annual growth rate of GHG emissions from the buildings sector. BEEP will contribute to the reduction of greenhouse gas emissions through the transformation of the Mongolian buildings market towards more energy-efficient building technologies and services, sustainable private house insulation and energy efficiency financing mechanisms.Furthermore, the project is intended to widen the scope of the current EE programs of the GoM (Government of Mongolia) through the Ministry of Roads, Transportation, Construction and Urban Development (MRTCUD) by addressing all the pertinent aspects of improving and further introducing EE concepts in the buildings sector in Mongolia.100,000 Solar Houses (Gers) - National Programme for Providing Rural Areas with Electricity through the Utilization of Renewable Energy (2000-2012).The main goals of the programme were:Electrification of all households in rural areas through Solar Home Systems (SHS).Development of Solar-Wind-Hydro-Diesel power hybrid system to meet electricity demand of livestock herdsmen’s households, villages, rural schools, hospitals, tourist camps, frontier posts, etc.The SHS were subsidised through contributions from various bilateral donors over the course of its lifetime (2000-2012). More than 30,000 subsidised SHS were sold to herder families by 2004. Over 40,000 SHS were distributed to herder families financed by the Mongolian National Budget in 2006-2007. After the inclusion of the World Bank in 2006, 27,000 more subsidised SHS were sold. The programme has also improved electricity distribution systems in 30 soums (districts), and installed hybrid systems to reduce the use of costly diesel in 15 soums. It has increased the electrification rate among nomadic herders from zero to 70%.

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