MINISTRY OF MINERAL RESOURCES AND
ENERGY
Sustainable Energy DevelopmentMongolian Energy Policy and Goals
P.TOVUUDORJ,
Director-General, Energy Policy
Department
MONGOLIAN POWER-2012
15-16 May 2012
MONGOLIAN POWER-2012
CONTENT
MINISTRY OF MINERAL
RESOURCES AND ENERGY
• 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
MONGOLIAN POWER-2012
SUSTAINABLE POWER GENERATION AND SUPPLY IN MONGOLIAPRIMARY ENERGY SUPPLY
MINISTRY OF MINERAL
RESOURCES AND ENERGY
Explored Main Energy Resources of Mongolia and its Operation
RENEWABLES
COAL
Geological
Reserves
World Ranking
by Reserve
Operation in
20104
OIL
URANIUM
HYDRO
SOLAR
WIND
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
billion kWh
15th
-
15th 2
-
-
-
25 million
tonne
0.3
million
tonne
~ 0.0
27.5
billion kWh
0.13
billion kWh
0.1
billion kWh
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
3
15-16 May 2012, Ulaanbaatar
MONGOLIAN POWER-2012
SUSTAINABLE POWER GENERATION AND SUPPLY IN MONGOLIAPRIMARY ENERGY SUPPLY
MINISTRY OF MINERAL
RESOURCES AND ENERGY
Structure of Primary Energy Supply by Source
1990
Coal
Oil
Hydro
Traditional Fuels & Others
Total
1995
2000
(Unit : 1,000 TOE, %)*
2005
2,365
1,695
1,798
1,895
2,324
63.1%
73.1%
70.2%
67.7%
65.6%
1,206
345
472
584
879
32.2%
14.9%
18.4%
20.9%
24.8%
0.00
0.00
0.25
0.28
4.73
0.00%
0.00%
0.01%
0.01%
0.13%
175
277
293
321
337
4.7%
12.0%
11.4%
11.5%
9.5%
3,746
2,317
2,564
2,800
3,545
100.0%
100.0%
100.0%
100.0%
100.0%
4,000
Oil
’00-‘05
2,000
Oil
Coal
Coal
Oil
1.2%
1.0%
4.2%
-22.1%
6.5%
4.3%
8.5%
0.0%
0.0%
2.1%
76.0%
9.6%
1.1%
1.8%
1.0%
-9.2%
2.0%
1.8%
4.8%
• Coal : 70.2 67.7 65.6
Oil
• Oil : 18.4 20.9 24.8
Coal
Coal
Coal
• Hydro  : 0.010.01 0.13
• Traditional Fuels and Others: 11.4 11.5 9.5
500
0
1990
Coal
’05-’10
-6.5%
(200020052010, %)
Oil
2,500
1,000
’95-’00
Trend in Demand Shares
3,500
1,500
’90-’95
* 1,000 TOE- 1,000 Tonnes of Oil Equivalent
Sourse– Energy policy and Statistics in Northeast Asia, 2011
3,000
Growth rate p.a. (%)
2010
1995
2000
2005
2010
Oil
Hydro
Traditional Fuels & Others
15-16 May 2012, Ulaanbaatar
MONGOLIAN POWER-2012
SUSTAINABLE POWER GENERATION AND SUPPLY IN MONGOLIAENERGY TRANSFORMATION SECTOR
MINISTRY OF MINERAL
RESOURCES AND ENERGY
Energy Balance of Mongolia, 2010
(Unit : 1,000 TOE)
================================ ========= ============ ===== ======= ========= ======= ========= =========
Traditional
Energy Resources
Caol
Oil
LNG Hydro Nuclear Electricity
Heat
TOTAL
Fuels &
Energy Flows
Others
------------------------------------------------------- ---------------- --------------------- --------- ----------- ---------------- ----------- ---------------- --------------Production
10,963.83
285.53 0.00
4.73
0.00
337.09 11,591.18
Import
0.00
0.00 0.00
22.60
0.00
0.00
908.89
Export
-8,737.75 -288.36 0.00
-1.91
0.00
0.00 -9,028.02
Stock Changes (±)
97.86
2.83 0.00
0.00
93.54
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------Total Primary Energy Supply
2,323.94
0.00 0.00
4.73
0.00
0.00
0.00
337.09
3,544.89
Transformation Sector
-1,997.73
0.00 0.00 -4.73
0.00
269.58 782.02
0.00
-954.08
Electricity Only Plants
0.00
0.00 -4.73
0.00
4.88
0.15
Heat Only Plants
-252.09
0.00
221.87
-30.22
Refinery
0.00
0.00
CHP's
-1,653.45
0.00
365.95 614.38
-676.33
Other
-25.27
0.00
0.00
-25.27
Own Use & Losses
-66.93
0.00
-101.26 -54.23
-222.42
Own Use & Losses
0.00
-57.80 -33.84
-91.64
Losses
-66.93
-43.46 -20.39
-130.77
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------Final Consumption
326.21
0.00
290.27 782.02
337.09
2,611.50
Industry
55.47
0.00
183.10 228.42
0.00
623.45
Transportation
0.00
0.00
6.86
0.00
0.00
685.69
Residential
162.59
0.00
45.83 320.10
283.79
812.31
Com/Public & Others
108.15
0.00
54.47 233.51
53.30
490.04
================================ ========= ============ ===== ======= ========= ======= ========= =========
15-16 May 2012, Ulaanbaatar
MONGOLIAN POWER-2012
SUSTAINABLE POWER GENERATION AND SUPPLY IN MONGOLIAENERGY TRANSFORMATION SECTOR
MINISTRY OF MINERAL
RESOURCES AND ENERGY
Installed Capacity of Power
Generation,
Total- 922 MW
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.
Electricity Generation by Plant Types, 2010
Type of PP
Combined Heat
and Power
(CHP) Plant,
91.6%
Combined Heat and
Power (CHP) Plant
Hydro, 3.1%
Diesel, 5.1%
Percentage
4256.0
98.68%
Diesel
29.3
0.68%
Hydro
27.5
0.64%
0.3
0.01%
4313.1
100.00%
Wind and Solar
Wind and
Solar, 0.3%
Generation,
Million. kWh
Total
Source– National Statistical Comittee
6
15-16 May 2012, Ulaanbaatar
MONGOLIAN POWER-2012
SUSTAINABLE POWER GENERATION AND SUPPLY IN MONGOLIACONSUMPTION
MINISTRY OF MINERAL
RESOURCES AND ENERGY
Electricity Generation, Import, Consumption of Mongolia, million kWh
4500
4000
3500
3000
2500
2719
2400
2000
2620
2357 2534
2195
2175 2006
1861 1909 1936 1882 1929 1867 1910 1948 2032
2829
3093 3034
3376
1500
1000
500
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source – Mongolian statistical yearbook
Generation
Import
Consumption
Available Capacity of Power Plants and Peak Load of Central Region, MW
800.0
700.0
600.0
500.0
400.0
300.0
200.0
100.0
0.0
538
532
539
559
576
546
2000
2001
2002
2003
2004
2005
Source– National Dispatching center
Peak Load
585
2006
638
2007
Available Capacity
15-16 May 2012, Ulaanbaatar
673
695
2008
2009
729
2010
7
MONGOLIAN POWER-2012
POLICY AND GOALS OF MONGOLIA ON SUSTAINABLE POWER
SUPPLY, ITS LEGAL FRAMEWORK
MINISTRY OF MINERAL
RESOURCES AND ENERGY
Name of Documents
No
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
2007
-
8
New Construction and Mid-Term Goal Program
2010
-
9
Southern Gobi Development Program
2010
-
Other Policy Documents
10
Government Action Plan 2008-2012
2008
-
11
Sustainable Development Plan of Energy Sector
2002
-
15-16 May 2012, Ulaanbaatar
MONGOLIAN POWER-2012
LEGAL FRAMEWORK TO SUPPORT INVESTMENT IN
ENERGY SECTOR
MINISTRY OF MINERAL
RESOURCES AND ENERGY
•
•
•
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:
o Mogoin Gol/Telmen/ TPP
o Ulaanbaatar CHP#5
o Dornod TPP Extention
– By Private Investment :
o Wind Farms of Salkhit, Choir and Sainshand
o 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
MONGOLIAN POWER-2012
DEVELOPMENT PROSPECT OF POWER SECTOR- CHALLENGES IN
POWER SECTOR
MINISTRY OF MINERAL
RESOURCES AND ENERGY
 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.
10
15-16 May 2012, Ulaanbaatar
MONGOLIAN POWER-2012
DEVELOPMENT PROSPECT OF POWER SECTOR - CHALLENGES IN
POWER SECTOR
MINISTRY OF MINERAL
RESOURCES AND ENERGY
 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.
11
15-16 May 2012, Ulaanbaatar
MONGOLIAN POWER-2012
DEVELOPMENT PROSPECT OF POWER SECTOR
– DEMAND GROWTH
MINISTRY OF MINERAL
RESOURCES AND ENERGY
Electricity Demand Forecast of Mongolia, 2011-2030
3500
3500
MW
3000
3000
2747
2747
Total Demand
Total Demand
Mining Sector
Mining Sector
2500
2500
2321
2321
1915
1915
2000
2000
1500
1500
10001000 907 907
1002
1002
1284
1284
1143
1143
1006
1006
1022
1022
1041
1041
784
784
500 500
0
3080
3080
70 70
107107
20112011
2012
2012
222
222
305
305
0
2013
2013
2014
2014
2015
2015
Source- GIA Energy Authority, RIED
15-16 May 2012, Ulaanbaatar
2020
2025
2025
2030
2030
MONGOLIAN POWER-2012
DEVELOPMENT PROSPECT OF POWER SECTOR
– PROJECTS TO BE IMPLEMENTED IN THE NEAR FUTURE
MINISTRY OF MINERAL
RESOURCES AND ENERGY
Telmen TPP 60 MW
Darkhan,Erdenet CHP
35 MW extension
Khotgor
TPP 36 MW
Ulaanbaatar
Baganuur TPP 270 MW
CHP#5 830 MW
CHP#4 100 MW extension
Chandgana TPP
600 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
Tavan tolgoi TPP 300 MW
Oyu tolgoi TPP 450 MW
15-16 May 2012, Ulaanbaatar
Khanbogd Wind Farm
250 MW
13
MONGOLIAN POWER-2012
DEVELOPMENT PROSPECT OF POWER SECTOR
MINISTRY OF MINERAL
RESOURCES AND ENERGY
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.
14
15-16 May 2012, Ulaanbaatar
Thank you for the attention!
Website: http://www.energy.gov.mn/