URECA Converts Mongolian Households into Virtual Power Plants for Grid Management

In the sprawling ger districts of Ulaanbaatar, Mongolia, a technological revolution is underway, tackling one of the city’s most pressing issues: severe air pollution. A climate tech startup named URECA is at the forefront of this change, pioneering an innovative solution that does more than just provide clean energy—it transforms individual households into a cohesive, intelligent energy network.

From Traditional Gers to Modern Power Hubs: Mongolian Virtual Power Plants

The source of Ulaanbaatar’s notorious air pollution is largely the burning of coal for heat in traditional homes, known as gers. URECA’s approach directly addresses this by outfitting these homes with a comprehensive clean energy package. This includes solar panels, batteries for energy storage, efficient electric heaters, and crucial insulation to retain warmth.

However, the true innovation lies in the integration of Internet of Things (IoT) sensors. This technology effectively turns each household into a small, manageable node in a larger energy system. By connecting these homes, URECA is creating a “Virtual Power Plant” (VPP).

The Power of a Virtual Network: Mongolian Virtual Power Plants

A Virtual Power Plant is a network of decentralized, small-scale power-generating units that are aggregated and controlled by a central system. In this case, the power-generating units are the individual gers. URECA’s technology allows for the real-time monitoring and management of each home’s energy production and consumption.

This network can work in conjunction with the national power grid. By intelligently managing the energy flow from hundreds of homes, the VPP can help stabilize the grid, particularly by preventing overloads during peak demand hours. When the central grid is stressed, these households can rely on their own stored solar power, ensuring their energy independence while simultaneously easing the burden on the national infrastructure.

AI, Emissions, and Economic Empowerment: Mongolian Virtual Power Plants

At the heart of URECA’s system is an artificial intelligence platform that tracks energy consumption and air quality in five-minute intervals. This constant monitoring allows the system to automatically optimize energy use, reduce coal consumption, and precisely calculate the resulting reduction in carbon emissions.

The impact is substantial, with each participating household cutting its carbon footprint by an estimated 12-13 tons of CO2 annually. This is where URECA’s model becomes truly transformative. Through the URECA platform, households can monetize these verified emission reductions as carbon credits. This provides a direct financial incentive, empowering residents to fund their own transition to renewable energy. As co-founder Orchlon Enkhzetsgeg noted, this model enables ger residents to generate income from their positive environmental actions, much like large-scale renewable energy projects.

With support from initiatives like the European Bank for Reconstruction and Development’s Star Venture program, URECA is scaling its innovative solution. By combining clean technology, smart grid management, and a unique carbon credit monetization plan, the startup is not only clearing the air in Ulaanbaatar but also building a resilient and decentralized energy future, one household at a time.