Zula L. - Opportunities in Mongolia’s Energy Sector l Mongolia Investment Forum: New York 2026
https://www.youtube.com/watch?v=DN1LeR-lM28
[00:04] Next, we are pleased to welcome Miss Da.
[00:07] Next, we are pleased to welcome Miss Da Luendor, head of energy export division.
[00:09] Luendor, head of energy export division at the deputy prime minister's office to present on opportunities in Mongolia's energy sector.
[00:12] Miss Da is an energy strategist and infrastructure finance expert with over 15 years of global experience.
[00:14] Previously she served as a project finance adviser at the UK cabinet offices infrastructure and project authority.
[00:17] Please welcome Mr. La.
[00:37] Good morning ladies and gentlemen.
[00:40] Uh, before presenting uh Mongolia's renewable energy landscape, I would like to highlight a important milestone in our cooperation with international partners.
[00:42] Uh, Mongolian energy transition will require significant long-term investment.
[00:46] In October 2025, the government of Mongolia has signed 1 billion framework agreement with European Investment Bank to support.
[01:05] European Investment Bank to support Mongolia's energy transition and Mongolia's energy transition and sustainable infrastructure development.
[01:10] Sustainable infrastructure development. Earlier during Davos uh the European recon bank for reconstruction and development EBRD also signed agreement with the deputy prime minister's office to mobilize up to1 billion US dollars um to support Mongolia's energy transition and green investment pipeline.
[01:30] These agreements provide strong foundation uh to mobilize capital into the Mongolia's energy transition.
[01:36] So our focus now is to translate these commitments into concrete projects both in public and private sector.
[01:45] Um majority of those capital will be uh focused on renewable power generation, grid modernization and crossber transmission, energy storage, green hydrogen and energy export, energy efficiency is also our main areas.
[02:01] We also um uh engage with number of uh
[02:06] also um uh engage with number of uh international partners such as Asian Development Bank, IFC, World Bank.
[02:13] So um this week we also had a very constructive meetings with US exim, MIGA and DFC DFC.
[02:22] Uh we hope to mobilize these partnerships into the constructive and meaningful cooperation.
[02:29] Um uh support of of such international partners is uh very important for Mongolia not only to attract capital but also structure the projects that meet international standard through both auctions and private public partnerships.
[02:47] Let me begin with very um brief overview of current power power system.
[02:52] Today Mongo's installed capacity generation is around 1.8 8 gawatt.
[02:58] The system remains largely dependent on coal based combined heat and power plants which currently accounts 80% of the total generation.
[03:07] accounts 80% of the total generation.
[03:09] Renewable energy already uh represents an important growing um part of the system.
[03:12] So we have uh currently eight uh solar power plants and three large scale wind power plants already installed into the system uh representing 19% of the total installed capacity.
[03:29] 19% of the total installed capacity.
[03:31] Mongolia's uh energy system is geographically fragmented with a limited interconnection uh capacity.
[03:37] So this creates both challenges and opportunities particularly in the areas of renewable energy expansion, grid modernization and energy storage.
[03:51] So um a bit on demand growth by 2035 u Mongolia will require approximately 8 1.8 8 gawatt of new capacity.
[04:01] Uh meaning the total capacity will be 3.3 by 2035.
[04:11] The total capacity will be 3.3 by 2035.
[04:14] Uh this is a clear uh investment opportunity across generation, storage and infrastructure.
[04:18] Uh we have identified large pipelines of solar and wind projects to support this u expansion.
[04:26] A bit on the legal and regulatory framework.
[04:29] I will keep it light here.
[04:32] From the regulatory perspective, Mongolia has been building its energy framework for more than um two decades.
[04:39] Uh the energy law and um the renewable energy has been adopted in two 2007 uh which is introduced feeding tariff system along with the international standards.
[04:52] Further in 2015 and 2019 the improved tariff system has been implemented.
[04:58] Um so we are now focusing on competitive auctions improved PPA bankability and international project finance structures.
[05:11] a bit on the uh project pipelines now um.
[05:16] a bit on the uh project pipelines now um so looking forward we have identified.
[05:18] so looking forward we have identified the uh additional 1.8 8 gigawatt which.
[05:22] the uh additional 1.8 8 gigawatt which will be structured through both auctions.
[05:24] will be structured through both auctions and private sector projects in parallel.
[05:27] and private sector projects in parallel.
[05:32] Um the red dots are existing uh solar and wind power plants.
[05:35] The green dots are uh the planned auction uh power.
[05:40] are uh the planned auction uh power plants which will be running throughout.
[05:42] plants which will be running throughout the country in starting from uh 2026.
[05:46] the country in starting from uh 2026 um uh through throughout the 20 uh 30.
[05:51] um uh through throughout the 20 uh 30.
[05:56] Uh so the uh the country is running now both competitive bidding and in.
[05:59] both competitive bidding and in bilateral uh projects private sector.
[06:03] bilateral uh projects private sector public private.
[06:05] public private projects to mobilize international.
[06:07] projects to mobilize international investors.
[06:07] So these are um
[06:12] investors.
[06:17] I will also introduce the key uh auction auctions in the next slide.
[06:20] So uh so these are the uh the key reform currently underway is the transition into a competitive renewable energy auction.
[06:26] Uh the uh international partners such as EBRD, ADB, World Bank are um working um closely to support Mongolia's auction system.
[06:40] Uh so the first one is now already start running is the 100 megawatt IFC um wind project which has been already um announced and um I understand the expression of interest is going um further solar and um wind projects also being planned with the BRD.
[07:06] uh also another 200 megawatt energy storage project is currently under feasibility study by the world bank.
[07:11] In addition
[07:13] study by the world bank.
[07:16] In addition there is there will be a large number of battery storage system uh auctioned throughout 2026 2027.
[07:22] Mongolia needs a large battery storage system in order to stabilize the grid so that more increased capacity of uh uh renewable energy plants can go into the system.
[07:37] So these auction mechanisms are designed to attract the international partners so that the PPA power purchase agreements are bankable and scale up the energy transition.
[07:53] There's also ongoing uh hydro power projects which has been uh which is being developed by the public sector.
[08:03] um these are very important for the uh stabilizing the grid and um increasing the capacity of energy uh system
[08:14] the capacity of energy uh system pump storage as well ongoing.
[08:19] So um pump storage as well ongoing.
[08:19] So um now um one of the key challenges we see today that in Mongolia is the gap between project uh ideas, projects, early stage projects and investment ready uh bankable projects.
[08:34] Many projects exist but few meet international investment standard.
[08:39] Common challenges include project preparation capacity, commercial structuring and investor readiness.
[08:46] So uh in that terms uh the auction system is very uh helpful uh to make the projects bankable which we already started uh on the private sector bilateral projects.
[08:59] We are now uh preparing and contemplating this um bankability facility which will start running from this summer uh to mobilize the uh uh more in private investors
[09:16] the uh uh more in private investors improving project bankability.
[09:18] improving project bankability strengthening the investment pipeline.
[09:20] strengthening the investment pipeline pipeline.
[09:22] pipeline.
[09:28] So uh the uh this uh bankability facility will have key activities in project preparation,
[09:32] bankability, investor mobilization and project finance structuring.
[09:43] The key here is that the such uh project finance bankability structures we also um prepare not only for the energy uh sector but also broadly into the agriculture and uh sustainability green finance uh structures.
[10:04] Thank you.
[10:06] Thank you.
[10:10] And uh yeah I look forward to um more cooperation. Thank you.