Power trading strategy

for Mongolia

(Asian Super Grid & Gobitec)

JAMBAA Lkhagva, Engineer, Ministerial Task Team

on Asian Super Grid, Ministry of Energy

jambaa@energy.gov.mn www.facebook.com/MongoliaAsianSuperGrid

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OUTLINE

Solar and wind energy resource potential in Mongolia

What are Gobitech and Asian Super Grid ?

What are benefits for the participating countries ?

The way forward & activities

Links for more information

Power sector and its exporting strategy

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Solar and wind energy resource

potential in Mongolia

Mongolia has abundant renewable energy resources in its Gobi desert and this

huge clean energy potential should be used to support sustainable

development in Northeast Asia

Source: National Renewable Energy Laboratory (NREL), US

Gobi Wind resource 946 TWh

Gobi Solar Energy

Resource 4777 TWh

China electricity production

in 2011 5000TWh

World electricity production in 2011

22126 TWh

18% 95%

4% 21%

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Power sector and its exporting

strategy

Power Plant Capacity Share

CHPs 877.3 MW 87 %

Renewable power 81.7 MW 8 %

Diesel stations 46 MW 5 %

Total 955 MW 100 %

907 1002 1143

1284

1915

2321

2747

3080

70 107 222 305

784 1006 1022 1041

0

500

1000

1500

2000

2500

3000

3500

2011 2012 2013 2014 2015 2020 2025 2030

Total Demand Mining Sector

Source: Ministry of Energy 2013

CHP,877.3MW,87%

Diesel,46MW,5%

HPP,28MW,3%

Solar-Wind,

53.7MW,5%

Total installed capacity by energy resources

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Power sector and its exporting

strategy

Source: Ministry of Energy 2013

Proposed power plant projects for electricity export

Oyu tolgoi TPP 450 MW Tavan tolgoi TPP 300 MW

Buuruljuut TPP

600 MW

Choir Wind Farm

50 MW

Sainshand Wind Farm

52 MW

Khanbogd Wind Farm

250 MW

Shivee Ovoo TPP 4800 MW

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Power sector and its exporting

strategy

China’s installed electricity capacity by fuel, end 2012

(Installed capacity:1,145GW)

China’s installed electricity capacity by fuel, 2040

(Installed capacity:2,265GW)

Source: EIA, International Energy Outlook 2013

China was the world's largest power generator as of 2011. Fossil fuels, particularly coal, continue to be

the leading sources of the country's electricity generation and installed capacity.

China has a goal to produce at least 15% of overall energy output by 2020 from renewable

energy sources as the government aims to address environmental issues.

Chinese companies invested $65 billion in renewable energy projects in 2012, 20% higher

than investments in 2011, and they plan to spend $473 billion on clean energy investments

between 2011 and 2015, according to the country's Five-Year Plan

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Power sector and its exporting

strategy

• A solution to Chinese the imbalanced distribution of resource and energy

Source: State Grid report, China 2012

China has begun construction on a large-scale ultra-high voltage (UHV) power project, which

will help alleviate air pollution problems. The project, estimated to cost 68.3 billion yuan ($11.2 billion),

will involve 4,740 km of new power lines as well as several new transformer substations, and will

stretch from Inner Mongolia in the northwest to the capital Beijing and down the coast to Shanghai.

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What are Gobitech and

Asian Super Grid?

The Gobitec concept represents the idea of producing clean energy from renewable

energy sources in the Gobi Desert and to deliver the produced energy to regions with

a high demand of electric energy.

Gobitech project:

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Power generation level of the

participating countries in 2030

based on BAU forecast Generation mix of the countries in

Northeast Asia is based on 2030

Business As Usual (BAU) forecast.

Source:“Gobitec and ASG for Renewable energies in

Northeast Asia” report, 2014.

What are Gobitech and

Asian Super Grid?

Gobitech project:

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It is aimed to interconnect

strategic countries in

Northeast Asia (NEA) with

electricity generation

areas in the Gobi Desert.

What are Gobitech and

Asian Super Grid?

Asian Super Grid project:

Because of differences in

time zone and peak load

of the countries, demand

and supply can be

balanced more easily

ASG will connect 5 capital cities and 9 regional cities with 7735 km of transmission

line and submarine HVDC cable

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What are benefits for the

participating countries?

Gobitech+ASG project can deliver economic, social and environmental

benefits to the participating countries such as job creation, poverty

alleviation and a reduction of CO2 emission

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What are benefits for the

participating countries?

Mongolia will profit benefits in many ways from the Asian Super Grid

& Gobitec economically, socially and environmentally.

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The way forward and activities

Information on the geographic starting point for possible power

generation projects/transmission line in the context of the power

trading with the greatest opportunities / identification of the cost

effective technology mix.

Study on opportunities and risks for a project in the power trading in

terms of investment, technical aspects, legal agreements, regulation,

tariffs and business climate in the two countries.

Provide institutional capacity building through effective training and

workshop that targeting institutions, investors in development of the

electricity export oriented business in Mongolia for the power trading

with China.

Developing of policy recommendations based on best practice

examples for decision making for the power trading.

2013.03.

MOU signed among representatives from the Mongolia, Korea, Russia,

Japan and Energy Charter for Joint Study

“Gobitec and ASG for

Renewable energies in

Northeast Asia” report

published

2014.01.24 2013.12.17

Request for ADB Technical

Assistance (TA) for next

research project

submitted to ADB

2012.06.20

The president

emphasized

ASG/Gobitech project on

his speech at RIO+20 UN

conference

2012.11.12

“The Renewable Energy Cooperation and Grid

Integration in Northeast Asia” International Conference in

Mongolia

Regional Workshop on the

joint study 'Gobitech& Asian

Supergrid' for Renewables

in Northeast Asia

2013.09.26

The way forward and activities

2014.03.20

Ministerial Task Team on

Asian Super Grid was

established under Ministry

of Energy of Mongolia

2014.01.28

“International Symposium

on Roadmap to Asia Super

Grid” was held in

Tokyo,Japan

The way forward and activities

2014.05.19

1/5 of total electricity to

export is supposed to be

produced from Renewable

energy.

2014.05.29

Reached the understanding

in re-starting cooperation

on Shivee Ovoo power

plant project.

2014.06.26

“Developing Renewable

Energy across Gobitec &

Asian Super Grid in

NEA” forum.

Xi Jinping reiterated his

support to electricity

export to China from

Mongolia

2014.10.27

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Links for more information

“Gobitec and ASG for Renewable energies in Northeast Asia” report

http://www.encharter.org/index.php?id=643&L=0

“Developing Renewable Energy across Gobitec &Asian Super Grid

in NEA” Forum in Ulaanbaatar, June 26, 2014

http://www.encharter.org/index.php?id=661&L=0

Ministry of Energy, Mongolia

http://energy.gov.mn

Ministerial Task Team on Asian Super Grid, Ministry of Energy, Mongolia

https://www.facebook.com/MongoliaAsianSuperGrid

Thank you for your attention

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