Sustainable Energy Development-Mongolian Energy Policy and Goals MINISTRY OF MINERAL RESOURCES AND ENERGY Sustainable Energy Development-Mongolian Energy Policy and Goals P.TOVUUDORJ, Director-General, Energy Policy Department MONGOLIAN POWER-2012 15-16 May 2012

MINISTRY OF MINERAL RESOURCES AND ENERGY MONGOLIAN POWER-2012 MINISTRY OF MINERAL RESOURCES AND ENERGY CONTENT Sustainable Power Generation and Supply in Mongolia Primary Energy Supply and Resources Energy Transformation Sector Consumption Policy and Goals of Mongolia on Sustainable Power Supply, Its Legal Framework State Policy on Power Sector, and Legal Framework Legal Framework to Support Investment in Energy Sector Development Prospect of Power Sector Challenges in Power Sector of Mongolia Projects to be Implemented Further Missions 15-16 May 2012, Ulaanbaatar

MINISTRY OF MINERAL RESOURCES AND ENERGY MONGOLIAN POWER-2012 MINISTRY OF MINERAL RESOURCES AND ENERGY Sustainable Power Generation and Supply in Mongolia- Primary Energy Supply Explored Main Energy Resources of Mongolia and its Operation   COAL OIL URANIUM RENEWABLES HYDRO SOLAR WIND Geological Reserves 175 1 billion tonne 205 1 million tonne 68.6 2 thousand tonne 56.2 3 billion kWh 1,200 -1,4003 kWh/м2 836.8 3 World Ranking by Reserve 15th - 15th 2 Operation in 20104 25 million tonne 0.3 ~ 0.0 27.5 0.13 0.1 Source: 1 – MMRE, Geology Policy Department 2 - Europe's Energy Portal, www.energy.eu 3 – “National Renewable Energy Program” Policy Document 4 – Mongolian Statistical Yearbook, 2010 15-16 May 2012, Ulaanbaatar

MINISTRY OF MINERAL RESOURCES AND ENERGY MONGOLIAN POWER-2012 MINISTRY OF MINERAL RESOURCES AND ENERGY Sustainable Power Generation and Supply in Mongolia- Primary Energy Supply Structure of Primary Energy Supply by Source (Unit : 1,000 TOE, %)*   1990 1995 2000 2005 2010 Growth rate p.a. (%) ’90-’95 ’95-’00 ’00-‘05 ’05-’10 Coal 2,365 1,695 1,798 1,895 2,324 -6.5% 1.2% 1.0% 4.2% 63.1% 73.1% 70.2% 67.7% 65.6% Oil 1,206 345 472 584 879 -22.1% 6.5% 4.3% 8.5% 32.2% 14.9% 18.4% 20.9% 24.8% Hydro 0.00 0.25 0.28 4.73 0.0% 2.1% 76.0% 0.00% 0.01% 0.13% Traditional Fuels & Others 175 277 293 321 337 9.6% 1.1% 1.8% 4.7% 12.0% 11.4% 11.5% 9.5% Total 3,746 2,317 2,564 2,800 3,545 -9.2% 2.0% 4.8% 100.0% Sourse– Energy policy and Statistics in Northeast Asia, 2011 * 1,000 TOE- 1,000 Tonnes of Oil Equivalent Trend in Demand Shares (200020052010, %) Coal : 70.2 67.7 65.6 Oil : 18.4 20.9 24.8 Hydro  : 0.010.01 0.13 Traditional Fuels and Others: 11.4 11.5 9.5 15-16 May 2012, Ulaanbaatar

MINISTRY OF MINERAL RESOURCES AND ENERGY MONGOLIAN POWER-2012 MINISTRY OF MINERAL RESOURCES AND ENERGY Sustainable Power Generation and Supply in Mongolia- Energy transformation sector Energy Balance of Mongolia, 2010 (Unit : 1,000 TOE) 15-16 May 2012, Ulaanbaatar

MINISTRY OF MINERAL RESOURCES AND ENERGY MONGOLIAN POWER-2012 MINISTRY OF MINERAL RESOURCES AND ENERGY Sustainable Power Generation and Supply in Mongolia- Energy transformation sector The overwhelming majority of our heat and electric energy was being generated by coal fired thermo power plants and the remaining small amount by hydro, wind, solar and diesel stations. Installed Capacity of Power Generation, Total- 922 MW Electricity Generation by Plant Types, 2010 Type of PP Generation, Million. kWh Percentage Combined Heat and Power (CHP) Plant 4256.0 98.68% Diesel 29.3 0.68% Hydro 27.5 0.64% Wind and Solar 0.3 0.01% Total 4313.1 100.00% Source– National Statistical Comittee 15-16 May 2012, Ulaanbaatar

MINISTRY OF MINERAL RESOURCES AND ENERGY MONGOLIAN POWER-2012 MINISTRY OF MINERAL RESOURCES AND ENERGY Sustainable Power Generation and Supply in Mongolia- Consumption Electricity Generation, Import, Consumption of Mongolia, million kWh Source – Mongolian statistical yearbook Available Capacity of Power Plants and Peak Load of Central Region, MW Source– National Dispatching center 15-16 May 2012, Ulaanbaatar

MINISTRY OF MINERAL RESOURCES AND ENERGY MONGOLIAN POWER-2012 MINISTRY OF MINERAL RESOURCES AND ENERGY Policy and Goals of Mongolia on Sustainable Power Supply, Its Legal framework No Name of Documents Approved Update Legal Framework 1 Energy Law of Mongolia 2001 2011 2 Renewable Energy Law of Mongolia 2007 - 3 Concession Law 2010 Development programs 4 “100000 Solar Ger” National Program 1999 Come to the end 2012 5 Program on Integrated Power Energy System 2002 2007 and Update will be made in 2012 6 National Renewable Energy Program 2005 7 Millennium Development Goals Based Comprehensive National Development Strategy of Mongolia 8 New Construction and Mid-Term Goal Program 9 Southern Gobi Development Program Other Policy Documents 10 Government Action Plan 2008-2012 2008 11 Sustainable Development Plan of Energy Sector 15-16 May 2012, Ulaanbaatar

MINISTRY OF MINERAL RESOURCES AND ENERGY MONGOLIAN POWER-2012 MINISTRY OF MINERAL RESOURCES AND ENERGY Legal framework to Support Investment in Energy sector Mongolian Parliament approved the Law on Concession in 2010 and this action open up opportunities to implement projects of energy sector such as new power plant by public-private-partnership for private sector. Following projects are being implemented nowadays, of which: By Concession Agreement: Mogoin Gol/Telmen/ TPP Ulaanbaatar CHP#5 Dornod TPP Extention By Private Investment : Wind Farms of Salkhit, Choir and Sainshand Chandgana TPP Hereafter, it is planned to establish methods and mechanisms within the state policy which will implement supports from the government stated on Concession law 15-16 May 2012, Ulaanbaatar

MINISTRY OF MINERAL RESOURCES AND ENERGY MONGOLIAN POWER-2012 MINISTRY OF MINERAL RESOURCES AND ENERGY Development Prospect of Power Sector- Challenges in Power Sector In recent years, electric consumption has being raised so national electrical factories capacity is lacking and lifetime of equipment is being higher. These matters are affecting ongoing and reliability of electric supply contrarily. Currently, power station with high capability should be established in order to provide development of mining sector, and policy to export power should be implemented instantly in connection with commissioning bigger mining deposits in Mongolia. If these activities are not carried out in short time, energy shortage will be occurred and furthermore it may be one of the factors that slow down country’s development. To liberalize price of power, to shift this sector market relations completely, and to provide convenient condition that attracts investment. 15-16 May 2012, Ulaanbaatar

MINISTRY OF MINERAL RESOURCES AND ENERGY MONGOLIAN POWER-2012 MINISTRY OF MINERAL RESOURCES AND ENERGY Development Prospect of Power Sector - Challenges in Power Sector Mission of the energy sector is to develop new structure based on technique and technology that are not harmful against nature and environment. In addition, requirements, such as increasing renewable energy share in such sector, as well as establishing large hydro power plants to adjust power system operation using hydro energy, are being faced. Electric insufficiency is still high; interest to improve performance of electric consumption is not arisen because of legal framework to encourage and support electric saving is not provided completely. Moreover, lack of local areas’ heat supply and necessity hot water affect development of rural areas and its citizens’ stabilized living condition contrarily. 15-16 May 2012, Ulaanbaatar

MINISTRY OF MINERAL RESOURCES AND ENERGY MONGOLIAN POWER-2012 MINISTRY OF MINERAL RESOURCES AND ENERGY Development Prospect of Power Sector – demand Growth Electricity Demand Forecast of Mongolia, 2011-2030 MW Source- GIA Energy Authority, RIED 15-16 May 2012, Ulaanbaatar

MINISTRY OF MINERAL RESOURCES AND ENERGY MONGOLIAN POWER-2012 MINISTRY OF MINERAL RESOURCES AND ENERGY Development Prospect of Power Sector – Projects to be implemented in the near future Darkhan,Erdenet CHP 35 MW extension Ulaanbaatar CHP#5 830 MW CHP#4 100 MW extension Baganuur TPP 270 MW Telmen TPP 60 MW Chandgana TPP 600 MW Khotgor TPP 36 MW Dornod TPP 100 MW extention Shuren HPP 300 MW Khushuut TPP 12-24 MW Choir Wind Farm 50 MW Salhit Uul Wind Farm 50 MW Sainshand Wind Farm 52 MW Khanbogd Wind Farm 250 MW Tavan tolgoi TPP 300 MW Oyu tolgoi TPP 450 MW 15-16 May 2012, Ulaanbaatar

MINISTRY OF MINERAL RESOURCES AND ENERGY MONGOLIAN POWER-2012 MINISTRY OF MINERAL RESOURCES AND ENERGY Development Prospect of Power Sector Energy Sectors Priorities: Sustain safety and reliability of sector operation, Improve energy sector economic capability Introduce environmentally friendly equipment and technologies, Develop renewable energy Facilitate and underpin private sector participation Meet efficiency and conservation requirements and growing demand for energy, Accelerate Energy sector Innovation Increase power exporting capability of Mongolia. 15-16 May 2012, Ulaanbaatar

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