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Energy industries

Mongolia's Renewable Energy Potential: A Path to Carbon Neutrality

Strategic Insights

— 2 min read

Mongolia, known for its vast coal reserves, is set to capitalize on its immense renewable energy potential, with solar and wind resources in the Gobi Desert capable of meeting domestic energy consumption and powering the Northeastern Asian region. Despite its dependence on coal-fired thermal power plants for 90 percent of its electricity production, Mongolia is actively working to increase its share of renewable energy, with the aim of reaching 30 percent of installed capacity by 2030. To support this transition, the country has amended its Renewable Energy Law, introducing feed-in tariffs and a competitive auction system for renewable energy projects.

Key Takeaways:

  • Mongolia's total renewable energy potential is 2600 gigawatts (GW), over 1000 times larger than its current installed capacity of 1.6 GW.
  • The country aims to increase its installed renewable energy capacity to 30 percent by 2030.
  • Mongolia has amended its Renewable Energy Law to support renewable energy projects, introducing feed-in tariffs and a competitive auction system.
  • The energy sector is the major contributor to greenhouse gas emissions and severe air pollution in Mongolia.
  • The country's renewable energy sector saw a 3.3% increase in electricity production in 2023, with solar and wind power contributing 8.5% to the total.
  • Mongolia has committed to reducing greenhouse gas emissions by 14% by 2030, with a focus on increasing renewable energy capacity and reducing carbon emissions from energy production.
  • The country has developed key state policy documents, including "Vision-2050" and the "2021 New Recovery Policy," to support its renewable energy targets.
  • Tax and non-taxation incentives, including exemptions and feed-in tariffs, are provided to encourage domestic and foreign investment in renewable energy production and infrastructure.

Statistics:

  • Mongolia's total renewable energy potential: 2600 GW[1]
  • Current installed capacity: 1.6 GW
  • Renewable energy capacity target by 2030: 30%[4]
  • Increase in electricity production from renewable energy sources in 2023: 3.3% or 349.7 million kWh
  • Contribution of solar and wind power to total electricity production in 2023: 8.5%
  • Reduction in greenhouse gas emissions target by 2030: 14%[3]
  • Renewable energy capacity added in 2023: 349.7 million kWh (3.3% increase)

Sources:

  • [1] "Solar and wind power in Mongolia, 2024 Policy overview" by Stockholm Environment Institute
  • [2] "Comparative Policy Analysis of Renewable Energy Expansion in Mongolia and Other Relevant Countries"
  • [3] "Nationally Determined Contribution (NDC) of Mongolia for the Implementation of the Paris Agreement"
  • [4] "Action plan for 2021-2030 of Mongolia's long-term development policy "Vision-2050"
  • [5] "Regulation for Competitive Procurement of Renewables"

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