51282-001: Energy Storage Option for Accelerating Renewable Energy Penetration | Asian Development Bank

Mongolia: Energy Storage Option for Accelerating Renewable Energy Penetration

Sovereign (Public) Project | 51282-001 Status: Active

The knowledge and support technical assistance (TA) will accelerate renewable energy penetration in the Central Energy System (CES) in Mongolia through (i) assessment of current status and future projection of CES, (ii) identification of innovative energy storage technologies, and (iii) assessment of their market potential and development of energy storage deployment strategy.

The TA is included in the Mongolia: Country Operation Business Plan (2018 -2020). The propose TA is fully aligned with the Country Partnership Strategy (2017- 2020) priority on improving natural resource management and broadening climate change response to support the government's priorities on the Mongolia Sustainable Development Vision 2030. The TA will also support the strategic priorities of the Asian Development Bank's (ADB) Midterm Review of Strategy 2020 to mitigate climate change and promote environmental sustainability.

Project Details

Project Officer
Yamamura, Shigeru East Asia Department Request for information
Country
  • Mongolia
Sector
  • Energy
 
Project Name Energy Storage Option for Accelerating Renewable Energy Penetration
Project Number 51282-001
Country Mongolia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9569-MON: Energy Storage Option for Accelerating Renewable Energy Penetration
Republic of Korea e-Asia and Knowledge Partnership Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

Energy / Energy utility services

Gender Equity and Mainstreaming No gender elements
Description

The knowledge and support technical assistance (TA) will accelerate renewable energy penetration in the Central Energy System (CES) in Mongolia through (i) assessment of current status and future projection of CES, (ii) identification of innovative energy storage technologies, and (iii) assessment of their market potential and development of energy storage deployment strategy.

The TA is included in the Mongolia: Country Operation Business Plan (2018 -2020). The propose TA is fully aligned with the Country Partnership Strategy (2017- 2020) priority on improving natural resource management and broadening climate change response to support the government's priorities on the Mongolia Sustainable Development Vision 2030. The TA will also support the strategic priorities of the Asian Development Bank's (ADB) Midterm Review of Strategy 2020 to mitigate climate change and promote environmental sustainability.

Project Rationale and Linkage to Country/Regional Strategy

Energy security and sustainable development are the two major challenges in Mongolia. Accelerating renewable energy penetration by increasing both the share of renewables in the energy mix and their capacity factors is vital for Mongolia to develop sustainable energy infrastructure and achieve energy independence. Currently the energy system of Mongolia is largely dependent on coal, and combined heat and power plants (CHPs) are the major energy supply for both power and heating. Mongolia lacks access to moderately priced liquid fuels and natural gas, which are mainly imported from Russia. Current energy capacity is not sufficient to meet the power demand during peak hours, and all fast ramping requirements and spinning reserve for frequency regulation and supply shortage are from the Russian grid connected to CES. It is observed that the import energy price from Russia has increased significantly in the past and the trend will continue.

The current energy capacity development cannot meet increasing demand without additional investment. Considering demographic and economic development, heat demand deficit in Ulaanbaatar is expected to grow from 44 gigacalorie per hour (Gcal/hr) in 2014 to 749 Gcal/hr in 2025 at an average annual growth rate of 32.3%. Power demand is expected to grow at 133 megawatt (MW) per annum from 697 MW in 2012 to 3,161 MW in 2030.

To address the widening supply-demand gap and to strengthen energy independence in a sustainable manner, the Government of Mongolia has brought forward a series of policies to increase the share of renewables in the energy mix. The State Policy on Energy 2015- 2030 approved by the parliament in 2015, intends to achieve energy independence and increase renewable energy share to 20% of total installed capacity in 2023 and 30% in 2030. To meet such a mid- and long-term target, renewable energy capacity will be required to reach up to 633 MW and 1,085 MW by 2023 and 2030, respectively. However, since CES has no spinning reserve, it can absorb up to 220- 250 MW of solar photovoltaic and 125 -175 MW of wind power capacity at 20% curtailment rate even with CHPs' operating load following mode. In future, the power system alone will not be able to integrate all proposed capacity of renewables. This results in great uncertainty and variability in the supply-demand balance unless flexibility, such as energy storage, is introduced in the power system.

The energy storage technologies can offer a great level of flexibility at both temporal and spatial scales for integration of electricity and heat systems. They are identified to be valuable in most energy systems, with or without high levels of variable renewable generation, to (i) improve efficiency of the energy system, (ii) help to integrate higher levels of variable renewable resources, (iii) increase energy access, and (iv) improve electricity grid stability, flexibility, reliability and resilience. The TA will identify technically feasible and financially viable energy storage technologies within the Mongolian energy system and develop viable commercial solutions for scaling up their deployment.

Impact Renewable energy capacity increased
Project Outcome
Description of Outcome Readiness for investments in energy-storage technologies increased
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Status and supply-demand projection of electricity and heat in the CES assessed

Technically feasible energy-storage technologies identified

Market potential for energy storage assessed

Energy-storage deployment strategy developed

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 The mission will finalize MOU with local government.
During Project Implementation
Business Opportunities
Consulting Services

ADB will administer the technical assistance. ADB's Energy Division, East Asia Department will select, administer, supervise consulting firm's outputs for the TA, and evaluate the consulting firm. The implementation arrangements are summarized in the table.

ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions.

Responsible ADB Officer Yamamura, Shigeru
Responsible ADB Department East Asia Department
Responsible ADB Division EASI
Executing Agencies
Ministry of Energy
Government Building 14, Khan-Uul District
Chinggis Avenue, 3-r khoroo
Ulaanbaatar, 17060 Mongolia
Timetable
Concept Clearance 07 May 2018
Fact Finding -
MRM -
Approval 21 Aug 2018
Last Review Mission -
Last PDS Update 29 Aug 2018

TA 9569-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Aug 2018 20 Sep 2018 20 Sep 2018 31 Jan 2020 31 Mar 2020 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 500,000.00 0.00 0.00 0.00 0.00 500,000.00 21 Aug 2018 0.00

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.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Heat and Power Storage Option for Accelerating Renewable Energy Penetration Firm - Consulting Closed 05 Jul 2018 19 Jul 2018

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.