Energy
From The Report: Mongolia 2013
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Outdated power plants and grids, alongside a legal environment and tariff regime in need of upgrading, has made investment difficult. However, several efforts, focusing on boosting and diversifying supply for electricity and fuels, and establishing a positive track record for Mongolia as a viable destination for private investment in large-scale energy projects, are under way. The good news is that Mongolia does not lack domestic sources of energy. Coal is plentiful and supply is available to meet the needs of electricity production. The country’s first wind farm is due to begin feeding into the central grid in early 2013 and solar power is already leveraged on a small scale. While most energy is still produced by burning coal, growing energy needs could be met by a more diverse mix, including the possibility of hydrocarbons and nuclear energy. The government appears intent on opening electricity generation to private investment.

This chapter contains interviews with M. Sonompil, Minister of Energy, and Willem Van Twembeke, CEO and President, GDF SUEZ Energy Asia.

Articles from this Chapter

Overview

On fire: While coal remains king, other energy sources are also heating up
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With ageing facilities, constraints that discourage efficiency and growing demand, Mongolia’s energy sector faces a number of challenges. Geography makes it reliant on one supplier for refined fuels, with a tenuous supply and a high purchase price. Several projects in the works now have the potential to reverse this trend, if they are successful. Efforts are focusing on boosting and diversifying supply for both electricity and fuels, as well as establishing a positive track record for Mongolia…

Analysis

Flowing fast?: Coal-to-liquid technology is considered a possible new energy source
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The ongoing search for fuel alternatives in Mongolia was stepped up after a shortage in the summer of 2011, and energy sector leaders are now exploring alternatives and supplements to buying from Russian state energy firm Rosneft. One possibility is coal-to-liquids (CTL) technology, a good fit given the country’s huge coal reserves. Several companies are in the process of evaluating CTL’s potential in Mongolia, but as of late 2012 none had progressed beyond feasibility studies. CTL is…

Interview

OBG talks to M. Sonompil, Minister of Energy
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Interview: M. Sonompil What steps are likely to be implemented to liberalise the electricity sector in 2013? M. SONOMPIL: Discussion about electricity sector liberalisation has been ongoing for 20 years and the topic has become even more important over the last decade. Today the Mongolian energy sector operates at a significant loss because the government is subsidising a large part of consumers’ and companies’ electricity bills. In order to avoid these losses, we are aiming to change the structure…

Interview

OBG talks to Willem van Twembeke, CEO and President, GDF SUEZ Energy Asia
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Interview: Willem van Twembeke What should be done to attract more investment in the energy sector and offset growing demand? WILLWM VAN TWEMBEKE: A successful first project will set the standard for future energy projects in Mongolia. The government has chosen a bidder, and negotiations are now under way, aiming at a commercial operations date in 2016. Completion of the project will send a positive message to the international investment community. The energy infrastructure will need reinforcement…

Analysis

A powerful combination: Expansion continues in both new and traditional segments
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Nuclear power has at times been considered a prominent part of Mongolia’s energy mix in the long term. The country has significant uranium reserves in multiple locations, according to data from the International Atomic Energy Agency, with the vast majority of it in the Dornod field in the north-east. Mongolia has in recent years been reforming its relevant laws and state agencies, and at points in the past the official goal was to have nuclear energy contributing to the mix of electricity sources…

Analysis

Mixing it up: Renewables look set to become increasingly important
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Though largely part of the informal economy, Mongolia is nevertheless no stranger to renewable energy – solar panels are a common sight perched outside gers (herders’ felt tents) across the country, used to power televisions and lamps. These account for only an estimated 0.1% of the country’s electricity mix, however. Yet the renewables story in Mongolia is set for major development, with the opening of a large-scale wind farm expected in early 2013. It will be the first to tap into what…