Mongolia’s energy sector consist of ﬁve independent electric power systems: Central, Western, Eastern, Southern, and the Altai-Uliastai Energy System, and deploys diesel generators and heat-only boilers in off-grid areas. The Central Energy System represents the biggest part of total electricity generation as it supplies power to major cities, the 13 provinces and about 150 soum centers.
Mongolia’s energy demand is driven largely by rapid development of the mining sector, especially in the South Gobi region. Mongolian government is expecting to work with Rio Tinto to build Tavan Tolgoi Power Plant in the region. It is proposed 450 MW coal-fired power station to provide power for the Oyu Tolgoi mine which currently uses imported power. Mongolia imports electricity equil to almost one fifth of its total consumption from Russia and China.
In 2021, Mongolia produced 7,913.6 million kWh of electricity, a 10.7% increase from the previous year. Thermal power plants accounted for 89.8% of total electricity production, while renewable energy sources accounted for 9.1%.
Energy consumption of designated consumers (as of 2021)
Mongolia has enormous potential for solar, wind, and hydro energy production. The country enjoys more than 260 sunny days per year, meaning that it’s one of the sunniest countries in the world. The country’s combined wind and solar power potential are estimated to be equivalent to 2,600 GW (gigawatts) of installed capacity or 5,457 terawatt-hours of clean electricity generation per year. The amount is enough to meet the country’s energy demand and can meet northeast Asia’s regional energy demand with a suitable transmission infrastructure. The government target is a share of renewable energy in total installed capacity of 20% by 2023 and 30% by 2030, as announced in the State Policy on Energy, 2015–2030.
As of the end of 2020, the energy system generates renewable energy from three wind power stations, six solar power stations, and four hydropower stations respectively.