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Mongolia: Supporting Renewable Energy Development

Sovereign (Public) Project | 52240-002 Status: Active

The ensuing project is to support the government of Mongolia in expanding renewable energy. In spite of vast renewable energy potential, Mongolia depends on 93% of total electricity production from coal fired thermal power plants. Coal has also been used as the primary source for heating. As a result, the energy sector becomes the major contributor to large greenhouse gas emissions and serious air pollution in the country. The air pollution level in Ulaanbaatar and other towns have become worse than that in cities such as Beijing and New Delhi. UNICEF warned that this has become the public health crisis, especially among children. Nevertheless, the use of coal cannot be reduced to meet growing domestic demand for electricity and heating. To be worse, the peak demand for electricity has almost been reaching to the present generation capacity limit. Under the situation, the country has overcome any power shortfall through more expensive power import from Russia.

Project Details

Project Officer
Ogino, Kaoru East Asia Department Request for information
Country
  • Mongolia
Sector
  • Energy
 
Project Name Supporting Renewable Energy Development
Project Number 52240-002
Country Mongolia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9941-MON: Supporting Renewable Energy Development
Asian Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 1.30 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

Energy / Electricity transmission and distribution - Energy efficiency and conservation - Large hydropower generation - Renewable energy generation - geothermal

Gender Equity and Mainstreaming Some gender elements
Description

The ensuing project is to support the government of Mongolia in expanding renewable energy. In spite of vast renewable energy potential, Mongolia depends on 93% of total electricity production from coal fired thermal power plants. Coal has also been used as the primary source for heating. As a result, the energy sector becomes the major contributor to large greenhouse gas emissions and serious air pollution in the country. The air pollution level in Ulaanbaatar and other towns have become worse than that in cities such as Beijing and New Delhi. UNICEF warned that this has become the public health crisis, especially among children. Nevertheless, the use of coal cannot be reduced to meet growing domestic demand for electricity and heating. To be worse, the peak demand for electricity has almost been reaching to the present generation capacity limit. Under the situation, the country has overcome any power shortfall through more expensive power import from Russia. Thus, the energy security and social and economic impacts have been toward conflicting and complicating situation.

To tackle the dilemma, the government issued the State Policy on Energy, 2015 2030 to increase the share of renewable energy to 20% by 2023 and 30% by 2030. ADB's country partnership strategy and country operations business plan (COBP) for Mongolia responded to this priority to expand renewable energy even in remote and less developed regions, and to enable air quality and carbon footprint improvements. Subsequently, the government's mid-term plan for 2019 2023 includes concrete activities for renewable energy development. For this purpose, this transaction technical assistance (TA) was programmed for 2019 and the ensuing loan project for 2021 in the COBP, 2020 2021.Given the strategy and rationale, following are the project outputs of the ensuing project:

(i) Output 1: Transmission strengthened to help evacuate more renewable energy to grid.

(ii) Output 2: Pilot pumped storage hydropower generation assessed for detailed engineering studies.

(iii) Output 3: Pilot geothermal heat and power generation assessed for detailed engineering studies.

(iv) Output 4: Advance heating technologies deployed.

The project impact will be increased renewable energy capacity, and the outcome will be increased and diversified clean energy supply schemes.

The ensuing project is estimated to cost $100 million. ADB will consider a project loan of $50.0 million from ADB's ordinary capital resources, and the balance is expected to be supported by cofinanciers and/or the government.

Project Rationale and Linkage to Country/Regional Strategy The TA will help the government prepare the project. The TA will refine the project scope by incorporating international best practices, innovative solutions, and conduct technical, safeguards, economic, financial, and other due diligence requirements.
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
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

Application for funding has been changed from JFPR to CEFPF.

Ongoing preparation for CEFPF application.

During Project Implementation
Responsible ADB Officer Ogino, Kaoru
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 -
Fact Finding -
MRM -
Approval 16 Jan 2020
Last Review Mission -
Last PDS Update 17 Jan 2020

TA 9941-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Jan 2020 11 Feb 2020 11 Feb 2020 31 Mar 2022 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 1,300,000.00 0.00 0.00 0.00 0.00 1,300,000.00 16 Jan 2020 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 Access to Information Policy (AIP) 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 Access to Information Policy (AIP) 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
Firm Consulting Services for Supporting Renewable Energy Development Project Firm - Consulting Active 05 Feb 2020 10 Mar 2020

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.