As of 2023, Mongolia has installed solar power capacity, with a total of 95 MW. ⁵

Exact capacity of not given but;

• Mongolia aims for 30% renewable energy capacity by 2030. ⁶

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Coal

According to available information, the average cost of electricity generation by coal in Mongolia is estimated to be around $47.50 USD/MWh.

Wind and Solar

Latest information is not available but;

• Wind Power Tariff: USD 0.085/kWh (capped in 2019)
• Solar PV Tariff: USD 0.12/kWh (capped in 2019)

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• In Mongolia, the average daily availability of electricity from the national grid varies by region and season. In some areas, such as the Western region, electricity is supplied for approximately six to eight hours daily due to reduced capacity at hydroelectric plants like Bogdyn and Taishir, which are affected by water deficiencies.
• During winter, especially in the ger (yurt) districts, power supply is often limited to two hours in the morning and six to seven hours in the evening.

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No recent data is available but;

Current installations

As of 2019, Mongolia had approximately 897,400 households. Notably, over 200,000 of these households, primarily nomadic herder families, have adopted solar energy solutions.

Projected installations

Mongolia has set ambitious targets to increase its renewable energy capacity, aiming for 30% by 2030. This initiative includes significant investments in solar energy, with plans to construct up to 300 megawatts (MW) of solar power plants by 2028.

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Current Solar Farms

According to recent information, as of 2023, Mongolia has nine solar farms.

Future Target

Exact number is not available but;

• The country aims to meet nearly 3% of its electricity demand with solar power by 2030 and increase this share to 20% by 2050.

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Current Off-Grid Solar Demand in Mongolia:

• Mongolia’s vast geography and nomadic lifestyle make grid-based electrification challenging, especially for the approximately 140,000 herding households living in remote areas.
• The Mongolian government launched the 100,000 Solar Ger Program to provide portable solar home systems (SHSs) to nomadic families. This initiative was later supported by the World Bank’s Renewable Energy for Rural Access Project (REAP), significantly expanding its reach.
• By the completion of these programs, over 100,000 SHSs had been distributed, providing more than 70% of nomadic herders with access to electricity for their yurts.
• The demand for off-grid solar solutions continues to grow as herders seek reliable power for lighting, communication, and small appliances, reducing reliance on expensive and polluting alternatives like diesel generators.

Future Off-Grid Solar Demand in Mongolia:

• Mongolia aims to increase its share of renewable energy, targeting 3% solar energy contribution by 2030 and 20% by 2050, which will further drive off-grid solar adoption.
• The off-grid solar market is expected to grow as solar technology becomes more affordable and battery storage solutions improve, making solar systems more viable for herders and remote communities.
• Government initiatives, along with international support from organizations like the World Bank and UNDP, will help scale up off-grid solar programs, ensuring broader rural electrification.
• Mongolia’s harsh winters and extreme weather conditions necessitate more durable and efficient solar solutions, leading to research and investment in hybrid systems that combine solar, wind, and battery storage.
• As Mongolia works towards near-universal rural electrification, expanding microgrid solutions and innovative financing models (such as pay-as-you-go solar) will make off-grid solar more accessible to low-income nomadic families.

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Current On-Grid Solar Demand in Mongolia:

• Mongolia’s electricity demand is growing due to urbanization, industrial expansion, and increased household energy consumption, particularly in Ulaanbaatar, where nearly half the population
• The country relies heavily on coal-fired power plants, leading to severe air pollution and carbon emissions, prompting a shift towards renewable energy, including grid-connected solar power.
• As of recent years, Mongolia has installed several large-scale grid-connected solar power plants, including the Sainshand (30 MW), Darkhan (10 MW), and Choir (15 MW) solar plants, contributing to the national grid.
• The government has attracted foreign investment and public-private partnerships to expand grid-connected solar projects, aiming to diversify the country’s energy mix.
• Mongolia imports a significant share of its electricity from Russia and China, and expanding on-grid solar capacity is seen as a way to reduce energy dependence and enhance energy security.

Future On-Grid Solar Demand in Mongolia:

• Mongolia has set a target to generate 3% of its electricity from solar energy by 2030 and increase this to 20% by 2050, driving further investment in on-grid solar projects.
• The development of large-scale solar farms and the integration of renewable energy storage solutions will be crucial to stabilizing the grid and ensuring continuous power supply.
• The government is planning to upgrade and expand transmission infrastructure to accommodate more renewable energy sources and improve grid stability, especially in winter when solar production fluctuates.
• International funding and partnerships with organizations like the Asian Development Bank (ADB) and the Green Climate Fund are expected to support Mongolia’s transition to a low-carbon power sector.
• Advances in solar technology, battery storage, and smart grid systems will enhance the efficiency and reliability of on-grid solar, making it an economically viable and environmentally sustainable solution for Mongolia’s growing energy needs.

The average annual salary is about $6,377 USD, with a range from approximately $3,316 USD to $9,737 USD. ¹⁸

The current population of Mongolia is 3,502,819. ¹⁹

Estimate for Factory Rent

1. Monthly Average Warehouse Rental Cost ²⁰

The average warehouse rental cost in Mongolia is approximately $14.04 per square meter per month. Prices vary based on factors such as location, size, and building quality, with most warehouses being concentrated in Ulaanbaatar.

2. Key Components of Administrative Costs

Salaries and Wages: ¹⁸

The average annual salary is about $6,377 USD, with a range from approximately $3,316 USD to $9,737 USD.

Monthly Rents for Office Space ²¹

The average office rent in Khan-Uul, Ulaanbaatar, Mongolia, is approximately $302 per month or $3,630 per year, depending on location, size, and amenities.

Electricity Generation ⁹

• In Mongolia, coal is the dominant source of electricity generation, accounting for over 80% of the country’s power supply and making it highly dependent on fossil fuels.
• However, there is increasing development in renewable energy sources such as solar and wind, although they currently make up a smaller share of the overall electricity mix.

Transmission & Distribution ²²

• In Mongolia, electricity transmission is carried out through a network divided into several distinct systems.
• The largest of these is the Central Energy System (CES), which utilizes 220kV transmission lines to distribute power across the country and connects to the Russian grid at the same voltage level.
• Other systems include the Western Energy System, Eastern Energy System, and Altai-Uliastai Energy System, each serving specific regions to accommodate Mongolia’s vast and sparsely populated landscape.

Energy Access ²³

• According to recent data, Mongolia has achieved nearly 100% energy access.

Energy Exports ²⁴

• In 2022, Mongolia exported $331,000 worth of electricity, ranking as the 93rd largest electricity exporter globally.
• That year, electricity was Mongolia’s 115th most exported product.
• The sole destination for Mongolia’s electricity exports was Russia ($331,000).

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Legal Basis for Solar Energy (Articles 1-3, Renewable Energy Law)

Mongolia’s Renewable Energy Law governs the development, production, and use of solar energy as part of the broader renewable energy sector. It applies specifically to businesses and entities engaged in selling or purchasing electricity from solar power sources. However, it does not regulate self-consumption solar setups (e.g., home-based solar systems used without selling power to the grid).

Licensing Requirements for Solar Power Producers (Articles 6-9)

All commercial solar energy producers in Mongolia must obtain a generation license from the Energy Regulatory Authority (ERA).

Grid-Connected Solar Power Producers

• Must sell electricity to the nearest transmission point.
• Are required to pay transmission costs for using the grid.

Off-Grid Solar Power Producers

• Can sell electricity to local networks through metered compensation, allowing remote communities to benefit from solar power.

License Application Requirements

To obtain a license, solar energy producers must submit;

• Land Certificates: Proof of ownership or leasing rights for the project site.
• Environmental Impact Study (EIA): Assessment of the solar project’s ecological effects.
• Equipment Compliance Documents: Verification that solar panels, inverters, and other equipment meet Mongolia’s technical standards.

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Government Initiatives

‘100,000 Solar Gers’ Initiative:

• Aimed at improving rural electrification by providing solar power to herder families.
• 5MW of solar PV systems were installed for herders.
• The initiative was supported by China, Japan, and the World Bank, enabling bulk procurement of solar systems at discounted prices.
• Created markets and jobs in the renewable energy sector.

Off-Grid Solar and Wind Power Plants:

• The World Bank and the Government of India supported 18 off-grid solar and wind power projects (60-200kW capacity) in various provinces.
• These projects provided valuable lessons for scaling up renewable energy deployment.

Support for Public Organizations:

• The Energy Regulatory Commission and national universities installed small-scale solar PV systems (16-30kW).

Local Regulations & Incentives

Net Metering Regulation (August 2020):

• Allows electricity consumers to supply excess solar energy to the distribution grid.
• However, the net metering process remains complex and time-consuming, discouraging many households and businesses.

Energy Tariff Adjustments:

• In 2023, the Government of Mongolia (GoM) increased energy tariffs:
  • 14% increase for general consumers.
  • 28% increase for mining companies.
• This tariff hike is encouraging private sector investments in micro-grids and solar energy to reduce dependence on expensive grid electricity.

Financial Mechanisms

Green Loans for Solar Rooftops & Mini-Grids:

• Local commercial banks provide loans to support the adoption of solar rooftops and household mini-grids.
• However, these loans are limited and often unaffordable for many consumers.

USAID & International Support

USAID’s Energy Governance Activity (MEG):

• Investigating ways to pilot and scale innovative energy projects (including co-generation of clean power and heating).
• Focused on improving the bankability of clean energy projects through better regulations and financial mechanisms.
• Conducting capacity-building programs for government and private sector stakeholders.
• Public awareness campaigns like ‘Energize Mongolia’ to promote the energy transition.

Mini-Grid Pre-Feasibility Studies:

• USAID conducted studies for Kindergarten No. 111 and School No. 107 in Ulaanbaatar.
• Found that while technically feasible, financial challenges exist for implementing mini-grid solutions.

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Current Operational Project

Tsetsii Solar PV Farm – 50 MW

• Location: Mongolia
• Capacity: 50 MW
• Other Details:
  • Developed by Clean Energy Asia.
  • One of Mongolia’s largest solar farms.
  • Financed by EBRD and JICA.
  • Investment: 120.7 million USD.

Sainshand Solar PV Farm – 55 MW

• Location: Mongolia
• Capacity: 55 MW
• Other Details:
  • Owned by Sainshand.
  • Supported by EIB and EBRD.
  • Investment: 121.7 million USD.

Salkhin Park Solar PV Farm – 155 MW

• Location: Mongolia
• Capacity: 155 MW
• Other Details:
  • Supported by the Joint Crediting Mechanism.
  • One of the largest solar parks in Mongolia.
  • Investment: 364.5 million USD.

Nar (Darkhan) Solar PV Farm – 10 MW

• Location: Mongolia
• Capacity: 10 MW
• Other Details:
  • Developed by Solar Power International.
  • Supported by JBIC.
  • Investment: 18.3 million USD.

Future Projects

Moron Solar PV Project – 10 MW

• Location: Khovsgol, Mongolia
• Capacity: 10 MW
• Date of Inauguration: Expected in 2026
• Other Details:
  • Ground-mounted solar PV project.
  • Expected annual electricity generation: 99,000 MWh.
  • Will supply power to 70,000 households.
  • Expected to offset 82,789 tons of CO₂ emissions per year.
  • Construction expected to begin in 2025.

G-Power LLC

Website: https://g-power.mn/

Location: Mongolia

Products & Services:

• Engineering, Procurement, and Construction (EPC) for renewable and electrical systems
• Operation & Maintenance for on- and off-grid PV systems
• Consulting Services (techno-economic feasibility studies, energy solutions)
• Research & Development in power electronics and automation
• G-Monitoring (remote solar power system monitoring via web and app)
• Official distributor of Ningbo Deye Inverter Technology

Sankou Solar Mongolia Co., Ltd

Website: www.sankousolar.com

Email: info@sankousolar.com

Products & Services:

• Solar trading and manufacturing
• Specializes in solar panel production