On a path towards an energy efficiency policy framework - the case of Mongolia

Panel: 2. Current energy efficiency policies: On stage and backstage

This is a peer-reviewed paper.

Authors:
Sven Ernedal, Renewable Energy and Energy Efficiency (4E) Project / EU – Viet Nam Energy Facility, Vietnam
Enkhtuya Gombosuren, German International Cooperation (GIZ), Mongolia

Abstract

Mongolia has extreme climatic conditions, with short summers and long, very cold winters. A secure energy supply is vital to ensure their survival and help bring about economic growth. The country currently has seven coal-fired power stations, between 30 and 50 years old and of Russian design. The level of operating efficiency is very low and around 40 percent of the electricity generated is lost during delivery and distribution. During the last two decades, the priority has primarily been on securing stability of energy supplies. Due to economic growth and a boom in the mining sector energy demand has risen markedly and it might exceed energy supply as early as 2012. The electrical load demand cannot be covered by the Mongolian power plants during peak hours during evening time and electricity needs to be imported at high cost from Russia. The GTZ Energy Efficiency project is being implemented together with the Energy Authorities in Mongolia since November 2007. Activities include: (1) Identification of measures to boost energy efficiency and development of bankable investment proposals; (2) Practice-based guidance on plant optimization; (3) Development of a normative framework and incentive structures for power plant management; (4) Supporting authorities in drafting a framework for energy efficiency; (5) Transfer of know-how in partnership with European technology providers, professional associations and vocational schools. In late 2010 demand side management was also added to the original project concept. The main consumer group is the industrial sector. But a recent study shows that lighting in households and other institutions mainly contributes to the peak load in the evening hours. The ongoing technical analyses and the identification of various measures will contribute to the development of an energy efficiency policy framework and guide the Mongolian government in preparing a Mongolian energy conservation law.