3. Energy inefficiency = lost opportunities
Under-utilized energy
• Global cities consume
>60% of global energy
• ~40% of Mongolia’s
central heating lost
through transmission and
poor building efficiency
Potential gains
• Global growth no longer
correlated with carbon
intensive energy (IEA, 2016)
• Mongolia’s industrial energy
intensity 7x world average
4. Policy solutions & Pricing
• National Green Development Policy
• 40% reduction in bldg. heat loss by 2030
• Price liberalization
• Electricity 9.85% increase from December 2014
• Heating 13% increase from December 2015
• Additional (gradual) increases expected
5. Top-down solutions
• Energy Conservation Law – Adopted November 2015
• Legal framework for energy management
• From diagnostics to management (ESCOs)
• Expected initial application (Rules being drafted, expected in Q2):
• ~15% reduction targets for large users
• Electricity: >2-5M kwh/year, depending on industry (TBC)
• Heat: >5,000 Gcal/year (TBC)
• Initial period of 3 years, then cascade to smaller users
• ~140 businesses could be affected
• Large public institutions affected (e.g. 3rd Hospital)
6. 5
Bottom-up solutions
• Profitability through resource efficiency…
• Measure and track consumption
• Upgrade processes and technology
• Lower risk…
• Shape the rules and incentives
• Decrease input cost volatility
• Attract investment and talent…
• Access lower cost capital / financial services
• Retain the best talent
