Mongolia’s power sector is dominated by inefficient, soviet-era coal power plants which make up 85% of total installed capacity (920 of 1082MW). In 2016, 96% (5.5GWh) of domestic power was generated by coal plants which makes Mongolia’s power supply one of the most carbon intensive in the world. 

Mongolia’s NDC aims to achieve a 14% reduction in greenhouse gas (GHG) emissions. This reduction on GHG can only be achieved if emissions from the energy sector are addressed. As such, Mongolia has established ambitious targets to increase renewable energy and reduce losses in the sector. It aims to increase renewable electricity capacity from 7.62% in 2014 to 20% by 2020 and to 30% by 2030 as a share of total electricity generation capacity and to reduce electricity transmission losses from 13.7% in 2014 to 10.8% by 2020 and to 7.8% by 2030. 

One of the key constraints to scaling renewable energy is the fragile and obsolete network and the absence of ramping capacity. High system losses, frequency fluctuations and voltage drops result in inadequate and poor quality of electricity services. 

Energy storage provides a wide range of ancillary services that helps the utility to stabilize the network and improve quality of electricity services. In addition, a key advantage of battery technology lies in its quick ability to respond to blackouts and provide ramping capacity. The Government of Mongolia (GOM) is in the process on considering battery storage to address the fragile network, improve quality of services, and manage loads to meet demand. However, there is no assessment of the most suitable type of battery technology, where the batteries would be best located, and the benefits, including financial. There are no regulations in place to regulate and price ancillary services, which are the major benefits of battery storage. 

The project objectives include capacity building for new technologies and the support for regulations and specifications for ancillary services and battery storage, paving the way for future private sector investments. Battery storage and ancillary services is one of the options to help stabilize the network, improve reliability and quality of energy services, reduce technical losses, and increase absorption capacity of renewable energy. 

Impact: Improved energy security and absorption of renewable energy on the grid resulting in decreased GHG emissions and air pollution. 

Outcome: N/A 

Project Outputs completed in 2019:

i. Green Growth Policies: 

Policy Assignment: 

• Regulatory Support for the Development of Regulations and Specifications for Battery Storage: PPA template for Energy Storage Projects delivered to the Energy Regulatory Commission.

ii. Green Investments:N/A

iii. Capacity Building and Knowledge Products:  

• Total of 3 capacity building activities in the form of workshop (2) and one international New Energy Summit.