Zula L. - Opportunities in Mongolia’s Energy Sector l Mongolia Investment Forum: New York 2026

https://www.youtube.com/watch?v=DN1LeR-lM28

Summary

TL;DR — Mongolia is actively seeking significant long-term investment to transition its energy sector away from coal towards renewables. Major international financial institutions have committed substantial funding, and the government is focusing on translating these commitments into concrete projects, particularly in renewable power generation, grid modernization, and energy storage. The country is implementing a competitive auction system and developing a bankability facility to attract international investors and meet its growing energy demands.

Key points

• Mongolia has secured significant funding commitments, including a $1 billion framework agreement with the European Investment Bank and up to $1 billion from the EBRD, to support its energy transition and sustainable infrastructure development.

• The current energy system relies heavily on coal (80% of generation), but renewable energy (solar and wind) already constitutes 19% of the installed capacity and is a growing focus.

• By 2035, Mongolia will require approximately 1.88 GW of new capacity, presenting a substantial investment opportunity in generation, storage, and infrastructure.

• The government is reforming its legal and regulatory framework, focusing on competitive auctions, improved PPA bankability, and international project finance structures to attract investment.

• Key reforms include transitioning to a competitive renewable energy auction system, with initial projects like a 100 MW wind project already underway and plans for large-scale battery storage systems.

• A significant challenge is bridging the gap between project ideas and investment-ready projects, which the new bankability facility aims to address by improving project preparation and investor readiness.

Takeaway — Mongolia presents a significant and growing investment opportunity in its renewable energy sector, supported by international financial commitments and a strategic focus on grid modernization, energy storage, and attracting foreign capital through improved regulatory frameworks and auction mechanisms.