With a strategic vision to reshape its energy landscape, Mongolia is pursuing an aggressive goal to generate 30% of its energy from renewable sources by 2030. This ambitious transition, detailed in the nation’s State Policy on Energy 2015–2030, is a direct challenge to its profound dependence on coal, which currently accounts for over 90% of electricity generation. By harnessing its high solar irradiation and vast open spaces, the country aims to enhance its energy independence and significantly reduce its reliance on imports from Russia and China.
A National Strategy for Mongolia’s Ambitions to Rise in Solar Energy
To realize its vision, Mongolia is not only setting targets but also building a robust policy framework. The government is focused on modernizing legislation, developing new financing mechanisms, and implementing critical grid upgrades. Tariff adjustments, such as planned changes to electricity rates in 2024 and heat price indexing in 2025, are being designed to attract greater private investment in solar and wind projects. Furthering this agenda, the nation is exploring advanced technologies, including the development of a renewable hydrogen strategy with support from the OECD, as part of its New Recovery Policy.
International collaboration is a cornerstone of this strategy. In 2024, Mongolia has strengthened its global standing by joining the International Solar Alliance and participating in high-level energy dialogues with the United States, signaling a clear commitment to adopting global best practices and attracting foreign expertise and capital.
From Nomadic Herders to National Mega-Projects: Mongolia’s Ambitions to Rise in Solar Energy
The foundation for Mongolia’s solar future was laid years ago with remarkable grassroots success. The ‘100,000 Solar Ger Electrification Program,’ backed by the World Bank, successfully introduced photovoltaic technology to over 200,000 nomadic herder families, demonstrating the viability of off-grid solar solutions. Building on this legacy, the country is now scaling up its ambitions with four solar mega-projects designed to generate utility-scale power.
These initiatives are crucial for achieving Mongolia’s long-term goals, which include reaching net-zero emissions by 2050 and cutting its overall greenhouse gas emissions. The energy sector’s disproportionate impact on the environment underscores the urgency of this transition, as it was responsible for nearly 45% of the nation’s total emissions in 2020.
Navigating Formidable Challenges for Mongolia’s Ambitions to Rise in Solar Energy
The path to a clean energy economy is fraught with significant obstacles. The nation’s economy is deeply intertwined with coal, which is not only a primary energy source but also a major export. Existing power generation remains state-owned and heavily subsidized, complicating market-based reforms. Furthermore, infrastructural deficits, including inadequate grid networks and a harsh climate that demands resilient battery storage solutions, pose major technical hurdles.
According to a UNDP assessment, meeting the sustainable energy goal (SDG7) requires an additional investment equivalent to 2.1% of Mongolia’s GDP annually through 2030. Without a significant acceleration of current efforts, projections indicate the country may only reach 23.3% renewable capacity by the deadline, falling short of its 30% target. This financial gap highlights the critical need to mobilize both public and private capital to ensure Mongolia’s solar ambitions become a reality.
Sources
- U.S.-Mongolia Energy Dialogue Joint Statement
- SDG 7 Road Map for Mongolia – NEXSTEP
- India and Mongolia Forge a New Energy Axis – ORF America
- Towards a Renewable Hydrogen Strategy for Mongolia | OECD
- Solar and wind power in Mongolia: 2024 policy overview | SEI
- Mongolia’s Clean Energy Transition: A Pathway to Sustainable and Inclusive Development
- MONGOLIA – World Energy Council
- Inner Mongolia on path to high-quality energy development
