The proposed project will support to (i) deploy the distributed renewable energy systems in remote and less developed regions in Mongolia, and (ii) enhance capacity of local public utilities in investment planning, project management, and grid control for sustainable renewable energy upscaling in the targeted region. Upon successful completion, the project delivers clean electricity to 70,000 households while annually avoiding 82,789 tons of carbon dioxide emission.
The impact will be imported electricity reduced and energy security improved. The outcome will be renewable energy supply in the country increased. The output will be (i) renewable energy capacity addition for electricity and heating supply in remote grid systems implemented, and (ii) capacity of local public utilities in investment planning, project management, and grid control enhanced.
| Project Name | Upscaling Renewable Energy Sector Project | ||||
| Project Number | 50088-001 | ||||
| Country | Mongolia |
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| Project Status | Closed | ||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Governance and capacity development Knowledge solutions Partnerships |
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| Sector / Subsector | Energy / Energy sector development and institutional reform |
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| Gender Equity and Mainstreaming | No gender elements | ||||
| Description | The proposed project will support to (i) deploy the distributed renewable energy systems in remote and less developed regions in Mongolia, and (ii) enhance capacity of local public utilities in investment planning, project management, and grid control for sustainable renewable energy upscaling in the targeted region. Upon successful completion, the project delivers clean electricity to 70,000 households while annually avoiding 82,789 tons of carbon dioxide emission. The impact will be imported electricity reduced and energy security improved. The outcome will be renewable energy supply in the country increased. The output will be (i) renewable energy capacity addition for electricity and heating supply in remote grid systems implemented, and (ii) capacity of local public utilities in investment planning, project management, and grid control enhanced. |
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| Project Rationale and Linkage to Country/Regional Strategy | Mongolia currently has a total of 969 megawatt (MW) of installed capacity, but because of aging power facilities that are well past their economic life, only 769 MW is available. Growing power demand over the decade has also pressured such obsolete power system. It resulted in increasing high cost imported electricity which meets around 20% of the country s power demand in 2015. The energy sector in Mongolia relies heavily on coal-fired power generation which accounts for 91% of total installed capacity. Such coal dependent power system has contributed to over 63% of carbon dioxide emission in the country which is the world s fifth most carbon-intense economy; whereas the country has tremendous renewable energy potential which could sufficiently meet long term domestic demand. Promoting a diversified energy mix with a higher share of renewable energy is a core priority both to reduce dependence on high cost imported electricity and to decarbonize the country s energy sector. The Government of Mongolia has taken several initiatives for renewable energy deployment since 2000, most notably (i) implementing the successful 100,000 Solar Ger Electrification Program (2000 2012) which provided access to modern energy to nomadic herders through solar home systems, and (ii) enacting the Law on Renewable Energy, which involves a set of regulatory arrangements with a US dollar denominated feed-in-tariff, facilitated the development of 50 MW Salkit wind firm, the first private power producer. However, a share of renewable energy in total capacity still stands at 7.6%. The country s power system is comprised of four grid systems which has successfully expanded electricity access to 97% of the population. The central energy system, which covers around 90% of power demand in the country, has already attracted a total of around 200 MW of private sector-led renewable energy projects so far. On the other hand, the other three grid systems in remote and less developed regions which supply power to 32% of the population, and witnessed above 10% of annual load demand growth for the last five years, has failed to attract private investment in renewable energy development due to smaller size of power demand, high transportation cost, and relatively lower renewable energy resource endowments. Inadequate investment in power generation capacity addition for remote grid systems has led to heavy dependence on imported electricity from neighboring countries to meet up to 70% of load demand in geographically scattered load centers, through long stretched transmission lines which has resulted in very high power loss. To address such unique challenges in remote grid systems, the government has sought to develop the first-of-its-kind distributed energy system utilizing renewable energy potential. It is comprised of a smaller scale and modular renewable energy system, which locally produces reliable electricity and thermal energy for local use while minimizing transmission loss. |
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| Impact | Imported electricity reduced and energy security improved | ||||
| Project Outcome | |
|---|---|
| Description of Outcome | Renewable energy supply in the country increased |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Renewable energy capacity addition for electricity and heating supply in remote grid systems implemented Capacity of local public utilities in remote grid systems in investment planning, project management, and grid control enhanced |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Inception workshop was held on 15 March and initiated discussion on candidate project sites with the executing and implementing agencies. In August 2017, scope of works for all sub-projects involving 41 MW of renewable energy capacity in total was finalized with the Ministry of Energy. The final workshop is scheduled on 25 Sep 2018. |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | Consulting services will be implemented over an 18-month period and is expected to start in November 2016 and be completed in April 2018. The technical assistance (TA) will require a total of 28 person-months of international and 65 person-months of national consulting services. The consulting firm will be engaged by ADB using the quality-and cost-based method with a standard quality and cost ratio of 90:10, in accordance with the Guidelines on the Use of Consultants (2013, as amended from time to time). The proceeds of the TA will be disbursed in line with ADB's Technical Assistance Disbursement Handbook (2015, as amended from time to time). |
| Responsible ADB Officer | Yamamura, Shigeru |
| Responsible ADB Department | East Asia Department |
| Responsible ADB Division | EASI |
| Timetable | |
|---|---|
| Concept Clearance | 07 Nov 2016 |
| Fact Finding | - |
| MRM | - |
| Approval | 09 Nov 2016 |
| Last Review Mission | - |
| Last PDS Update | 04 Sep 2018 |
TA 9224-MON
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 09 Nov 2016 | 23 Nov 2016 | 23 Nov 2016 | 31 Jul 2018 | 31 Dec 2018 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 0.00 | 1,500,000.00 | 150,000.00 | 0.00 | 0.00 | 0.00 | 1,650,000.00 | 09 Nov 2016 | 1,427,254.72 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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| Title | Document Type | Document Date |
|---|---|---|
| Upscaling Renewable Energy Sector Project: Technical Assistance Consultant’s Report | Consultants' Reports | Dec 2018 |
| Upscaling Renewable Energy Sector Project: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Nov 2016 |
| Upscaling Renewable Energy Sector Project: Project Preparatory Technical Assistance Report | Project Preparatory Technical Assistance Reports | Nov 2016 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
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Tenders
No tenders for this project were found.
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|---|---|
| Project Preparatory | Technical Assistance 9224 | 16 Feb 2017 | Integration Environment and Energy GmbH (Germany) | Germany | Ministry of Energy | 1,236,000.00 | — |
Procurement Plan
None currently available.