The Mongolian Prime Minister Ukhnaagiin Khürelsükh recently started a groundbreaking ceremony for a 15 MW solar power plant in the ZAMNN-YUD Economic Development Zone in Donogow Province in the southeast of the country. This facility is the second photovoltaic facility in the country and is currently the largest one.
Mongolia is currently using solar energy to reduce its dependence on old coal-fired power stations. The largest project under development in the country is a 30-megawatt project that received financial support from the European Bank for Reconstruction and Development (EBRD) and some investment partners. EBRD has invested US$140 million in four renewable energy projects in Mongolia with a total project capacity of 180 MW, which accounts for 16% of Mongolia’s total electricity capacity. In addition, there is a 20 MW solar park in Mongolia that is under development. All of these projects will be deployed in Donogov Province and are expected to be completed by the end of this year.
Mongolia implemented the FIT program last year and allocated about 200 megawatts of solar energy and 450 megawatts of wind power capacity. However, the World Bank believes that these arrangements “do not take into account the load capacity of the power grid, nor do they consider whether power consumers have the ability to accept the increase in electricity prices”, thus causing many developers to fall into awkward situations.