Energy policy of mongolia

1. MONGOLIAN ENERGY SECTOR
DEVELOPMENT AND ITS FUTURE
Dr. Yondongombo.G
Expert for Nontraditional Energy Resources of MoE
Executive Director of Monationenergy
E-mail: yondongombo@gmail.com

2. Outline
1. Energy resources
2. Current picture of energy sector
3. Challenges
4. Policy
5. Strategic Aims
6. Stages of implementation

3. ENERGY RESOURCES
Mongolia is rich in energy resources:
Coal
• 173 Billion tons of coal registered
Oil
• 43.3 Billion tons of exploitable oil reserves
Oil shale
• 788 Billion tons of oil shale
CBM and Natural Gas
• 17-43 Trillion c.m CBM

4. ENERGY RESOURCES (cont’d)
Uranium
• Mongolia is one of the leading countries in uranium reserves.
Solar
• More than 280 sunny days a year
Wind
Geothermal
Hydropower and Pumped Storage Power

5. COAL DEPOSIT RESOURCES
Coal
• Over 85 deposits in 15 basins.
• 173 Billion tons of coal registered
• 22 Billion tons proven reserves.

6. OIL DEPOSIT
Oil
• 21 oil explorations blocks active out of 31.
• 332,6 million tons of proven oil reserves.
• 43.3 Billion tons of exploitable oil reserves

7. OIL SHALE RESERVE
Oil shale
•Preliminary study over 93 deposit covering 9 basins or
312,000 sq.km of terrain reveals 788 Billion tons of oil
shale which is estimated to be in the 19% of Mongolian oil
shale reserve.

8. NATURAL GAS RESOURCES
CBM and Natural Gas
• The prospective CBM resource of 1 - 10 Trillion c.m* in Tavan
Tolgoi area and 5-10 Billion c.m** of CBM in some identified
coal basins
• 2,589 Million Cub.m of associated NG in Toson Uul oil block
*Desktop Review of the CBM Potential of the Tavan Tolgoi Coal Deposit, South Gobi Basin,
Mongolia Report Prepared for Golden Horde by Nordic Geological Solutions. 2014
**A Study Determining Methane Reserve in Coal Beds at Kharkhiraa, Ongiin gol Coal-Bearing Basin

9. URANIM DEPOSIT RESOURCES
Uranium
• Mongolia is one of the leading countries in uranium reserves.
• Measured reserves: 37,500 tons
• Proven reserves: 11,800 tons

10. SOLAR ENERGY RESOURCES
Solar
•70% of the country has high solar radiation. Country’s
solar radiation level is 4.5 kW/m2 and 5.5-6.0 kW/m2 in
the south, respectively.

11. WIND ENERGY RESOURCES
Wind
• Wind power potential is estimated at 1,100 GW. Power
density is 400-600W/m2 or the commercially viable windy
area is up to 10% of the country
• Recently first 50MW wind park connected to CES

12. GEOTHERMAL ENERGY RESOURCES
Geothermal
•Total of 43 hot springs are located in Khangai region,
ranging from 36°C- 100°C
•Areas with geothermal reserves are utilized as spa
and springs.

13. HYDRO ENERGY RESOURCES
• Mongolian hydro energy resources are 56,000 Million kW.
• Annual electricity production by HPP is 75 million kWh, its equal to only 1% of
total hydro energy resource.
• Due to the rapid development of the mining industry, it is possible to build a
pumped storage hydro power

14. Pumped Storage Hydro Power

15. Boroo Pumped Storage Hydro Power Project

16. Boroo Pumped Storage Hydro Power Project

17. Boroo Pumped Storage Hydro Power Project
TURBINE & GENERATION SYSTEM
Left Rev. Right Rev. unit
Cross Head on Turbine =H 80 90 m
Discharge: Q=P/(9.81 x (H - Hf) 200 200 m3/s
Capacity of Upper Reservoir 4.8 4.4 Million m3
Actual time of Running of Turbine 5 5 Hours
Rated Power of Selected Francis Turbine 50x3 45x3 MW
Efficiency of Turbine System 85% %
Efficiency of Electricity of Generation System 90% %
Total Period of Generation 5 5
PUMPING MACHINERY 7 7
Total discharge of Pump 50x3 50x3 m3/s
Total Head of on Pump (Roundup) 90 80 m
Efficiency of pump & motor (%) 90 90 %

18. INTEGRATED POWER SYSTEM PLAN
General overview of Integrated power system

19. CURRENT PICTURE OF ENERGY SECTOR
Energy sector of Mongolia is based on its rich coal resources.
Mongolia has Western (WES), Central (CES), Eastern (EES) and
Altai-Uliastai (AUES) energy systems
CES
• 14 provinces
• Capacity: 960MW
• 4.3B kWh of
annual
consumption
• 8 power stations:
UB TPP #2, #3, #4;
Darkhan TPP,
Erdenet TPP,
Dalanzadgad TPP,
Ukhaa Khudag
TPP, Salkhit wind
farm
• Connected to
Russian grid via
220kV
transmission line
WES
• Provinces: Uvs,
Khovd, Bayan-Ulgii
• Capacity: 30MW
• 108M kWh of
annual
consumption
• Connected to
Russian
Krasnoyarsk grid
• Durgun 12MW
hydro power plant
• Import from Russia
EES
• Provinces: Dornod,
Sukhbaatar
• Capacity: 27MW
• 112M kWh of
annual
consumption
• Dornod TPP 36MW
AUES
• Provinces:
Zavkhan, Gobi-
Altai
• Capacity: 16MW
• Taishir hydro
power plant11MW
• Diesel generators

20. INTEGRATED POWER SYSTEM PLAN

21. INTEGRATED POWER SYSTEMPLAN - 1
1. Үндсэн дамжуулах шугам 220 кВ, 110 кВ.
2. Нэвтрүүлэх чадвар сул (140-220 МВт).
3. Олон эх үүсвэрийн зэрэгцээ ажиллах шаардлагатай .
4.Нэгдсэн системд АУЭХС, ББЭХС зэрэгцээ ажиллах
боломжгүй.
5.Зарчмууд хагас хангагдана.
1. Эдийн засгийн хувьд хэмнэлттэй.
2.Байгуулахад цаг хугацаа бага шаардана.
3.Эх үүсвэрүүдийг сул цэгүүдэд байршуулах
боломжтой.
Төвийн бүсийн нэг
Усан цахилгаан ст
Цахилгаан станц (

22. INTEGRATED POWER SYSTEMPLAN - 2
1. Дамжуулах шугам 500 кВ (тогтмол), 220 кВ, 110 кВ.
2. Нэвтрүүлэх чадвар төвийн болон өмнөд, зүүн өмнөд районд сайжирн
3.Нэгдсэн системд АУЭХС, ББЭХС зэрэгцээ ажиллах боломжгүй.
4.Зарчмууд хагас хангагдана.
1.Нэвтрүүлэх чадвар төвийн болон өмнөд, зүүн
өмнөд районд сайжирна.
2. Босоо тэнхлэгийн хувьд найдвартай
хангагдана.
3. Экспортлох боломж нээгдэнэ.
3 улсын
хооронд
ЦЭХ
импортл
ох/
Төвийн бүсийн нэгдсэн сүлжээ
500 кВ-ын агаарын шугам
Усан цахилгаан станц
Цахилгаан станц (нүүрс)
Салхин цахилгаан станц

23. INTEGRATED POWER SYSTEMPLAN - 3
1.Нэг эх үүсвэрээс хамааралтай байдал ажиглагдана
2.Өртөг зардал өндөртэй
3. Тав болон гуравдугаар зарчим хангагдахгүй
1. Дамжуулах шугам 500 кВ, 220 кВ, 110 кВ, тогтмол гүйдлийн
шугам.
2. Нэвтрүүлэх чадвар бүс нутгаар жигд сайжирна.
3. Босоо болон хэвтээ тэнхлэгээр холбох боломж бүрдэнэ.
4. Экспортлох боломж нэмэгдэнэ.
Төвийн бүсийн нэг
500 кВ-ын агаарын
Тогтмол гүйдлийн
Усан цахилгаан ст
Цахилгаан станц (
Салхин цахилгаан

24. INTEGRATED POWER SYSTEMPLAN - 4
1.Босоо тэнхлэгүүдийг байгуулах асуудал хөрш орнуудын
бодлогоос хамаарна.
2. Үнэ өртөг өндөр
1. Дамжуулах шугам 500 кВ, 220 кВ, 110 кВ, тогтмол
гүйдлийн шугам.
2. Нэвтрүүлэх чадвар бүс нутгаар жигд сайжирна.
3. Босоо болон хэвтээ тэнхлэгээр холбох боломж
бүрдэнэ.
4. Экспортлох бүтэц бүрдэнэ.
5.ОХУ-ын Эрхүүгийн УЦС давамгайлсан системтэй
холбогдоно.
Төвийн бүсийн нэ
500 кВ-ын агаары
Тогтмол гүйдлийн
Усан цахилгаан ст
Цахилгаан станц
Салхин цахилгаан

25. INTEGRATED POWER SYSTEMPLAN - 5
Central Grid
ETL 500 kV
HVDC
HPP
TPP
WP
1. Increase voltage of ETL up to 500 kV.
2. Estabilish HVDC.
3. Longitude and Latitude Connections.
4. Electricity Export

26. TPP /Coal
Fired/
85%
Diesel
7%
Wind farm
5%
Hydropower
2%
Small scale
RE
1%
Source: Ministry of Energy
INSTALLED CAPACITY (BY TYPE OF SOURCE)

27. Renewable energy production
• Wind energy 53.8MW
• Solar energy 5.32MW
• Hydro energy 28.3MW
Renewable energy production, 2013 Renewable energy national program at 2020
To start large
scale solar power
plants at
international level
and implement
pilot project.
To build a large
scale
Hydropower
plants
Decrease air
pollutions of
Ulaanbaatar
and other
cities
build a wind
farm with 30-
50MW capacity
and connect to
central energy
system
I stage II stage III stage
2005-2010 2010-2015 2015-2020
90.44%
53.8 MW
5.32 MW
28.3 MW
9.55%
ДЦС САЛХИ НАР УС
CPP
827.4
MW
RE
87,42
MW

28. Electricity Consumption forecast of Energy System
1040
1148
1287
1890
2147
2281
2408.8
1184
1246
1650 1724
1954
2022
2240
1184
1247
1663
1759
2020
2132
2404
1244 1311
1760
1886
2198
2367
2717
0
500
1000
1500
2000
2500
3000
2014 2015 2016 2017 2018 2019 2020
ЦДҮС ХК Мастер төлөвлөгөө бага
Мастер төлөвлөгөө дунд Мастер төлөвлөгөө их
Electricity consumption forecast of CES between 2014 and 2020. MW
NPTG
Master Plan, Mid Master Plan, high
No
. Consumers 2014 2015 2016 2017 2018 2019 2020
1 Ulaanbaatar 631 691 753 809 858 892 910
2 Central region 106 120 129 145 186 201 223
3
“Khangai”
region 170 183 194 206 242 247 269
4 Oyutolgoi area 350.8 351 350.8 351
5 Choir 35 44 54 61 88
109.8
8 139
6 Sainshand 8
12.02
1 22 34.6 156
168.6
8 182
7
Tsagaansuvarg
a 40 40 71 77
8 Tavantolgoi 20.8
24.88
2 30.4 66.64 69.1 71.7 74.5
9 Zamiin-Uud 6.8 7.4 17.36 27.9 38.5 41.0 43.58
10 Baganuur 15.4 16.6 17.8 19.2 20.8 22.4 24.2
11 Altai-Uliastai 10.3 11.1 16.0 20.9 21.9 23.1 24.3
12 Mandalgobi 3.5 3.8 4.1 4.43 10.2 11.0 11.9
Total
consumption 1006 1114 1239 1786 2080 2209 2330
Growth 107 125 547 294 129 121
Growth rate
10.7
%
11.3
%
44.1
%
16.5
% 6.2% 5.5%
Consumption forecast + Including mines
Max 2717MW
Ave. 2400MW
Low: 2240MW

29. CHALLENGES
• Lack of Sources
• Challenges of stable operations during peak time still remains due to
delay of needed power and hydro plants in recent years. Energy
import has reached 19% of the total energy consumption.
• Investment Environment
• Low energy tariff, and incomplete regulatory framework sway away
financing and private sector investment for energy industry.
• Financial difficulties faced by power plants
• Cost of energy surpassed its subsidized tariff.
• Hence, power plants are unable to finance renovation and
maintenance.
• Aging equipments and facilities
• Most of the power plants, transmission and distribution networks are
outdated as were commissioned in 1960-1980.
• Efficiency
• National loss of transmission/distribution- 13.8% (twice the developed
country percentage)

30. POLICY
• Vision:
• “To become energy exporting with market based, efficient,
environmentally friendly technology that ensures national
economic growth, sustainable development, energy security,
and reliable operations”
• Priority
• Energy security and consistent supply
• Efficiency and effectiveness
• Environment sustainability
• Green Development
• Principles
• Energy security and consistent supply
• Sustainable Economic growth
• Comfortable living environment for communities/citizens
• Environmental friendliness
• Efficiency
• Based on science and knowledge
Efficiency
Security
Environment
Energy
Policy

31. STRATEGIC AIMS
1. Reliable Energy Supply and Energy Security
2. Regional Energy Integration andCooperation
3. Training and Development of Energy Industry Work
Force
4. Transformation of Energy Industry to Competitive
Market Based Structure
5. Application of Innovative Technologies to Energy
Industry, Improvement of Efficiency of Production,
Transmission, Distribution and Consumption,
6. Enhancement of Renewable Energy Production;
Negative Environment Impact and Greenhouse Gas
Reduction

32. STAGES OF IMPLEMENTATION
• Increase Fuel and Power resources
• Establish a foundation for the development of
renewable energy
• Establish perfecting a system of Regulatory
normative documents, transfer to Euro Standards,
improve the legal environment
Stage 1
(2015-2023)
• Export energy, sustainable energy development
(renewable energy)
Stage 2
(2024-2030)

33. STAGES OF IMPLEMENTATION
• Increase installed capacity by twofold
• Apply highly efficient technologies
• At least 10% hydro power in the mix of total of
installed of capacity
• Develop and form environment for developing
Renewable energy industry
• Optimize tariff so as to formulate basis for
economic independence for energy sector
Stage 1
(2015-2023)
• Energy security reserve of Mongolia- not less
than 20%
• Share of Renewable energy in the mix of total
installed capacity- not less than 30%
• Smart grid
• Establish transnational grid and start electricity
export to NEA. Energy and power sector is
becoming to play main role in Mongolian
Economy
Stage 2
(2024-2030)

34. EXPECTED OUTCOME
Parameters
2013
/Base year/
Stage 1
/By 2023/
Stage 2
/by 2030/
Installed capacity of power production -10% 10 % ≤ 20% ≤
Installed capacity of large cities 3% 10 %≤ 15 % ≤
Profitability of CES tariff -18.1 % 0% 5%
TPP internal demand 14.44 % 11.2% 9.14 %
Loss of transmission and distribution
/OT import not accounted for/
13.8% 10.8% 7.8%
Renewable energy share in domestic
installed capacity
7.62% 20% 30%
Greenhouse gas emission per 1 GCal
of energy production
0.52 t CO2
equivalent
0.49 t CO2
equivalent
0.47 t CO2
equivalent

35. Thank you for your attention!