Mongolia’s Green Energy Revolution
Unlocking Vast Solar, Wind, and Hydrogen Potential by 2025
A New Energy Hub
Mongolia is transforming from a coal-dependent economy into a clean energy hub for Northeast Asia, leveraging its immense natural resources.
Abundant Resources
Estimated 2,600 GW of solar and wind potential, primarily in the Gobi Desert, with 270 sunny days per year and strong winds.
Current Energy Landscape & Ambitious Goals
2023 Energy Mix
- Coal: ~90% of power generation
- Wind: ~6.2%
- Solar: ~2.3%
- Other Renewables: Marginal
Renewable Capacity & Targets
Current Installed Capacity (2024):
- Wind: 155 MW
- Solar: 143 MW
Government Target:
Increase renewable generation to 30% of capacity by 2030.
Achieved ~19% by 2023, narrowly missing the interim target.
Pioneering Projects & Strategic Partnerships
Operational Milestones
- Salkhit Wind Farm (50 MW, 2013)
- Tsetsii Wind Farm (50 MW, 2017)
- Sainshand Wind Farm (55 MW, 2018)
- Darkhan Solar Plant (10 MW, 2016)
Major Planned Projects
- Gobi Mega-Project (2,000 MW Wind+Solar by 2030) – UAE Partnership
- Gobi H2 Green Hydrogen (10 MW pilot by 2025-26) – Elixir Energy & SB Energy JV
- Upscaling RE Program (300 MW Solar, 200 MW Wind by 2028) – EBRD Partnership
Key Policy & Investment Drivers
- “Vision 2050” & State Policy on Energy 2015-2030
- Tax exemptions for renewable equipment
- Shift to competitive auctions for new capacity
- “Third Neighbors” strategy to attract diverse FDI
Exporting Green Energy: The Asian Super Grid Vision
Key Export Markets
- China: Immediate market for electricity & hydrogen, especially for energy-intensive industries in northern provinces.
- South Korea: Potential importer of green hydrogen/ammonia due to limited domestic renewable potential.
- Japan: Key proponent of ASG, interested in green ammonia/hydrogen for power and industrial sectors.
- Other Markets: Discussions with Gulf countries (UAE, Saudi Arabia) for wider Eurasian power grid connections.
Asian Super Grid (ASG)
Mongolia is central to the ASG vision, linking grids of China, Mongolia, Russia, South Korea, and Japan to supply low-cost clean electricity.
The Gobi Desert could produce ~2.6 TW of power, positioning Mongolia as a “battery” for Northeast Asia.
New 500 kV transmission lines are planned to deliver power from the Gobi to China and beyond, leveraging China’s UHV network.
Navigating Challenges, Realizing Benefits
Key Challenges
- Grid Infrastructure: Aging, fragmented internal grids with limited capacity for large-scale renewables.
- Financing: Billions needed for infrastructure development.
- Policy Implementation: Streamlining regulations, ensuring bankability of PPAs.
- Water Resources: Limited water in arid regions for electrolysis in hydrogen production.
- Harsh Climate: Extreme cold winters and dust storms require robust technology.
- Coal Dependence: Managing gradual transition from an economy heavily reliant on coal exports.
Anticipated Benefits
- Economic Diversification: Reducing reliance on mining and commodity price swings.
- New Revenue Streams: Billions in annual revenue projected from energy exports.
- Job Creation: Thousands of new jobs in the clean energy sector.
- Energy Security: Balanced supply through regional integration, reducing imports.
- Geopolitical Influence: Positioning Mongolia as a key contributor to Asia’s decarbonization.
- Environmental Impact: Significant reduction in air pollution and greenhouse gas emissions.