SOUTHERN REGION OF MONGOLIA

POWER HOUSE OF RENEWABLE ENERGY

D. Gankhuyag,
CEO of Clean Energy Asia LLC
June, 2015

Section 1:

Renewable Energy Potential in Mongolia

Section 2:

South Gobi Renewables Projects

Section 3:

Asian Super Grid

Section 1:

Renewable Energy Potential in Mongolia

Mongolian Energy Sector

Installed Capacity of Power

Generation,
Total 1178 MW

Generation,
Mln.kWh

Percentage

5191.3

96.3%

Diesel

8.2

0.2%

Hydro

66.3

1.2%

Wind and Solar

126

2.3%

Total

5392

100%

Type of PP
CHP

Source: National Statistical Committee

2% 4%
5%
CHP
Wind&Solar
Hydro
Diesel

Electricity Forecasts
Electricity Demand Forecast (MW)

*The following forecast for whole of Mongolia and includes Oyu Tolgoi and Tavan Tolgoi as loads as well as other known spot loads.

Source: ADB, Development Plan, 2013

Renewable Energy Policy

National renewable energy program
In 2005, approved by the Parliament
Target:
- To increase the share of renewable energy in
the total supply to 20-25% by 2020;

Renewable energy law

In January 2007, approved by the Parliament
Feed-in tariff (FIT) for renewable power sources

In 2005 State policy on energy sector submitted to the

Parliament

Mongolian Renewable Energy Potential

Solar resource *

Wind resource *

Mongolia 946TWh

Mongolia 4774TWh
South Korea
309TWh

China 3826TWh

Japan 34TWh

China 2380GW(on land)*** installed 114GW**

Mongolia 1130GW*** installed 50MW

China 27374TWh*

Japan
809TWh

320 sunny day**

Mongolia 4774 TWh

* http://globalatlas.irena.org/ ** Wikipedia, *** NREL

Mongolian Renewable Energy Potential

Gobi Wind
energy resource
946TWh/a

Electricity generation of
Mongolia in 2014
5.6 TWh*

Gobi Solar
energy resource
4777TWh/a

21%

4%

World electricity
production in 2012
22668TWh*
96%

19%

China electricity
Production in 2012
4985TWh*

* Key World Energy statistics 2014 by IEA

Renewable Energy in the Gobi Desert

Tremendous Wind Potential

400,000 km2 suitable land for wind and

solar projects in Mongolia

Excellent wind and solar resources

with high efficiencies

Low GDP per capita but rapidly

expanding economy

Neighboring countries with massive

electricity consumption

Vast land, low population density

1.7 people per km2

Flat land cover

Low construction cost

Low average temperature

High efficiency for PV

Section 2: South Gobi Renewables Projects

10

Brief Introduction of Company

Newcom was established in 1993 as one of the early private enterprises
following the Mongolia's transition to democracy and a market-led
economy.
Newcom Group has led the successful completion of the first wind
farm in Mongolia Salkhit Wind Farm (50MW).

SoftBank Corp is a Japanese telecommunications and Internet

corporation,
with
operations
in
broadband,
fixed-line
telecommunications, e-commerce, Internet, broad media, technology
services, finance, media and marketing, and other businesses.

Clean Energy Asia LLC (CEA) was established in 2012 as a joint venture
between Newcom LLC and the Japanese telecommunications giant
Softbanks renewable energy arm, SB Energy Corp.

11

Tsetsii 50MW Wind Farm project

Where we stand

Advantages

First Wind Farm in the South Gobi

Supported by the Government of Japan and Mongolia

PPA 25 years

Tariff @9.4 cent/kWh 20 years

Experienced developer (Newcom developed Mongolias

first wind farm Salkhit 50MW with EBRD, FMO and GE)

Operation start: 2017

Suitable landscape and location

Total capacity of Wind Farm: 50MW

Annual Energy Production: 174m kWh

Potential expansion up to 250MW depending on

increase of demand

Estimated average wind speed is 8.4 m/s at 80 meter

Obtained all required approvals and signed

relevant agreements
Average wind speed /monthly/

Wind speed

10.0
9.0
8.0

S-9001
7.0

S-9002
S-9003

6.0

10

11

12

Month

12

Advantages to the Grid

Reduce the volume of imported electricity (2014)
1,400 mln kWh reduce by 13% /174 mln kWh/
Reduce the line losses of long distance transmission
Transmission line losses between Ulaanbaatar and Tavan Tolgoi
mine (729 km 220 V transmission line) is measured at 5.4%
By completing Tsetsii Wind Farm, the transmission line losses will be
reduced by 8.1 mln kWh
Absorb reactive power of the grid (quality of electricity will increase)
Stabilize the voltage drop

13

Our Projects in the Gobi

Ulaanbaatar

Bulgan Site
46,000ha
Up to 1.5GW

Tavan Tolgoi
Coal Mine

Khurmen Site**
161,000ha
Up to 5GW

Tsetsii Site
7,290ha
Up to 250MW

Oyu Tolgoi
Copper Mine

Khankhongor Site
10,000ha

Started

Wind
masts

Solar
masts

Average wind speed

50m m/s

Tsetsii

2008

7.6 excellent

Khurmen

2010

6.4 good

Bulgan

2010

7.5 excellent
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Section 3:

Asian Super Grid

15

Why Need Electricity Market Reform?

Negative aspects of regional monopoly system

were revealed after March 2011
Lack of system to transmit electricity
beyond regions
Little competition and strong price
control
Limit in handling the change in
energy mix including increase in
renewables

Source: METI

16

HVDC Network Linking Asia

17

Key Message
Asian Super Grid (ASG) planned to use power corridors:
connecting Russia, Mongolia, China, South Korea and Japan
Interconnection target
Aims to interconnect strategic countries in Northeast Asia (NEA) with
electricity generation areas in the Gobi Desert.

Technologies and cost implications

The objective is to connect Irkutsk in the North, Shanghai and Seoul in
the South and Tokyo in the East of the ASG region with high voltage
direct current (HVDC) transmission lines.

Benefits of regional integration

Will deliver a number of economic, social and environmental benefits to
Mongolia and to the other participating countries.

Source: Gobitec and Asian Super Grid for Renewable Energies in Northeast Asia | 2014

18

Potential
The overall potential of solar and wind energy in the
Gobi Desert is about 2,600 TW.

Source: Gobitec and Asian Super Grid for Renewable Energies in Northeast Asia | 2014

19

Ambition Target

Exporter of Renewable Energy

20

Thank You for Your Attention