Can Mongolia export its renewable energy products to the global market amidst changing development models?

• Energy sector: The total electricity production reached 10.3 billion kWh, while the distribution amounted to 9.3 billion kWh in 2022. Notably, 79.3% of the electricity distributed was sourced domestically, while the remaining 20.7% was imported electricity.

Energy source distribution

Analyzing the source structure of domestic energy production from the previous year reveals that thermal power plants accounted for the majority, contributing 90.9%. Meanwhile, solar, wind, and hydro combined constituted 9.07%, and a small fraction of 0.03% came from diesel sources.

Mongolia’s energy imports are decreasing compared to previous periods. However, we still have an opportunity to:

• Increase the installed capacity of thermal power stations and build new ones;
• Expand renewable energy sources to fulfill its domestic energy needs and explore possibilities for exporting energy to other markets.

The installed renewable energy capacity is 1,400 MW per year, accounting for about 20% of total consumption.

Resources and opportunities

Sun, wind, and water are categorized as renewable energy sources, known for being particularly inexhaustible and sustainable natural resources. According to ADB estimates, Mongolia has the potential to produce 5,457 TWh of electricity per hour using wind and solar energy. This is equivalent to 63% of China's total electricity production in 2022.

In conclusion, the development of renewable energy capacity using this resource offers a unique opportunity to diversify export earnings and make a substantial contribution to reducing carbon dioxide emissions in the region.