The strategies for sustainable development and reduction of GHGs in the energy sector focus on improving energy demand and supply efficiency, clean coal technologies, energy efficiency in buildings and industry, and developing renewable and other clean energy use. Moreover, the following GHG reduction strategies have been proposed for the transportation sector: improving traffic conditions, using more fuel efficient vehicles, and implementing a shift from individual road vehicles to rail and public transport systems.
Improvement in Energy Supply Efficiency
Improvement in efficiency of Combined Heat Power Plants:Currently, six Combined Heat and Power Plants (CHPs) are operating in Mongolia with a total installed electrical capacity of 824 MW, a steam production capacity of 7,100 tons/h, and an annual load
factor of 71.4 percent. In order to increase the efficiency and realibility of existing CHPs, the government of Mongolia promotes projects from foreign countries, international banks, and financial organizations. During the period 1990~2008, 67 projects were implemented in the energy sector with a total investment of US$ 575 million in foreign loans and technical assistance. From this amount, 53.4 percent of the investment has been used for rehabilitation and improvement of CHP. The results were positive and reliability and efficiency of energy production was improved. The station’s own use of CHPs reduced from 22 percent in 2000 to 15.9 percent in 2009. The specific energy use for electricity generation reduced from 414.3grams/kWh to 332.6 grams/kWh and that for heat generation from 185.4 gramskg/Gkal to 178.1 gramskg/Gkal
<Table 1>.
Improvement in efficiency of heating-only boilers:The severe climate and long winter season in Mongolia make heating an absolute requirement for sustaining life. Merely 23 percent of the total amount of fuel consumed is used for electricity generation, while the remaining 77 percent is used for heat generation. Heat is provided to households, government buildings, schools, hospitals, and
<Table 1> Station’s Own Use and Specific Energy Consumptions of CHPs
22000000 22000011 22000022 22000033 22000044 22000055 22000066 22000077 22000088 22000099
Station’s own use, % 22.0 22.0 21.0 19.8 19.1 18.1 17.5 16.5 16.1 15.9
Specific energy use for electricity generation, grams/kWh
414.3 408.6 414.3 395.5 389.5 378.3 366.7 347.9 336.8 332.6
Specific energy use for heat generation, gramskg/Gkal
185.4 184.6 185.7 184.8 183.5 183.3 180.8 178.5 178.6 178.1
Source: Energy Statistics-2009; ERA, Ulaanbaatar, 2010
industries primarily through district heating, which is distributed from central heating plants located in the central areas of larger cities, small boiler houses in peripheral areas of large cities, and aimag1and soum2centers.3 The total heat load is 800 MW in aimag and soum centers, which includes heating for residences, public offices, hospitals, and schools. Approximately 80 percent of the boiler houses are located in soum centers. The individual heat output of the boilers is between 0.8 MW and 2.1 MW, and coal is the main fuel. The condition of these boilers has deteriorated significantly since the 1990s, and their heat efficiency is merely approximately 40 percent. As a result, the quality of heating services in soum centers is extremely poor.
Improving the existing heating systems in soum centers (through refurbishment and modernization) is a high priority for sustaining life and livelihoods in these areas.
Further, improving the efficiency of heating systems in aimag centers will improve the overall quality of heating services during the winter. In addition, boiler efficiency is expected to increase from 40 percent to 70 percent, thereby decreasing coal consumption and CO2
emissions. This results in both reduced boiler- related air pollution and savings in government budgets for soum centers.
Improvement of heat efficiency in ger (traditional houses) district areas:Household stoves in cities have low energy efficiency, pollute the environment, and threaten human health due to inefficient fuel burning. One of the potential options for reducing environmental pollution and GHG emissions
is to replace the raw coal used in stoves with gas fuel, smokeless coal briquettes, or electricity.
Since 1990, the Ministry of Nature, Environment and Tourism and the administration of Ulaanbaatar city have undertaken several measures to increase the efficiency of furnaces and household stoves; however, this has been only moderately successful. Therefore, the Parliament of Mongolia is focusing on the issue of air pollution in Ulaanbaatar city. The
“New Development” program was approved by the State Great Khural (Parliament) in April 2010. One of the main targets of the program is to significantly reduce smoke, and consequently GHG emissions in the ger districts of Ulaanbaatar
The Millennium Challenge Account of Mongolia is implementing an Energy and Environment Project that is focused on the critical issue of air quality for Ulaanbaatar residents. The objective of the project is a sustainable reduction of air pollution by increasing the adoption of energy efficient products in homes in the ger districts.
Demand-Side Energy Conservation Measures
Improvements of district heating systems and installation of heat meters in buildings:
Since 2000, industry and service entities in all major cities and towns have been using heat meters because they are motivated to save heat energy. Currently, 30 percent of heat consumers have been supplied with heat meters. As a result of installing heat meters, heat consumption has decreased by 20
1 An aimag is a first-level administrative subdivision of Mongolia.
2 A soum is a second-level administrative subdivision of Mongolia.
3 Each aimag is subdivided into several soums.
percent. In Mongolia, approximately 30 percent of the country’s population lives in public apartments connected to the central heat supply network. None of these apartments has heat meters, and the heating prices and fees are based on a fixed tariff.
Moreover, the apartments are not installed with technical instruments to adjust their own heat consumption.
Improvements in insulation for existing buildings and implementation of new energy-efficient standards for new buildings:
Thermal energy is used for heating private and public buildings, production of goods and services, and for heating water for household use. It is a peculiarity of Mongolia that 90 percent of the overall energy consumed is used for building insulation purposes.
Therefore, the introduction of technologies that help to improve building insulation is critical for achieving increased energy efficiency. The loss of heat in buildings is high and residential consumers have no means of regulating the temperature inside their homes.
There is a great potential for saving energy and reducing GHG emissions if building insulation options can be improved.
The Ministry of Road, Transport, Construction, and Urban Development and the UNDP in Mongolia have been implementing the Building Energy Efficiency Project, which is aimed at reducing the annual growth rate of GHG emissions from the building sector. This project will contribute to a reduction in emissions by shifting the Mongolian buildings market toward more energy- efficient building technologies and services, sustainable private house insulation, and energy efficiency financing mechanisms. The objective of the project is the improvement of the energy utilization efficiency in Mongolian buildings
by refining the energy efficiency levels of buildings in the new construction sector and improving the energy efficiency of new and existing gers and private houses in urban areas.
The government policies for reduction of energy loss in buildings are focused on the following aspects:
●Standards for new buildings
●Insulation of old buildings
By insulating currently used buildings to the standard level, heat losses could be reduced by 40 percent.
Improvement of energy efficiency in industry: Improvement of Motor efficiency:
In Mongolia, motor systems use approximately 70 percent of industrial electricity. These motor systems are often less efficient than those in industrialized countries. Motor efficiency improvement technology includes using energy-efficient motors and variable speed drives, improving operation and maintenance, correcting previous over-sizing, and improving mechanical power transmission and efficiency of equipment that is driven. It is estimated that the electricity savings potential of this technology is 20 percent of the electricity currently used by industrial motors.
Good housekeeping practices and energy management: The Mongolian industry has a significant potential for saving energy through the improvement of energy use and management. The energy savings potential by “easy” savings (good housekeeping practices that minimize the use of heat and electricity and energy management) is 15~25 percent, with a cost recuperation period of less than one year.
Introducing dry processing in the cement industry:
Changing the wet processing of cement to dry
processing saves a large amount of energy.
This has been proven by a feasibility study, which was conducted within the framework of the Clean Development Mechanism Project for reducing GHG emissions. It is estimated that 25 percent of all industrial coal is used for cement production. Wet processing of cement requires 1,500 to 1,700 kcal/kg-cl of heat, whereas dry processing may require 1,000 to 1,200 kcal/kg-cl. This implies a savings potential of 40 percent of the coal consumption in the cement industry.
Enhancement of the national transportation system:The government of Mongolia has developed important strategies for the transport sector encompassing expected goals for the long term. The Millennium Road Program was developed by the government and approved by the parliament in 2001. The purpose of the project is to connect Mongolia to neighboring countries and seaports in the shortest possible manner. The proposed highway will stretch across the country, along with five vertical arterial roads, and is supposed to be implemented within 11 years.
The Ministry of Road, Transportation, Construction and Urban Development is focusing its efforts on developing legal contexts, monitoring and coordinating systems, and revenue-generating mechanisms for regulating the transit freight forwarding, connecting Asia and Europe through the territory of Mongolia by inland truck transportation. Moreover, the Ministry is also planning to develop a modern service infrastructure and logistics centers along the horizontal arterial roads.
The “Transit Mongolia” program was adopted by the government in May 2008 and will be implemented by 2015. The program defined several strategic directions such as the
construction of a secondary railway line, railway electrification, intensification of transit transport through Mongolian territory, and the construction of transport and trade logistics centers and cargo terminals.
The Eco-transport Strategy is part of the Mongolian government’s development agenda to protect the environment and health of the population as well as increase economic prosperity. Under the strategy framework, the following objectives have been identified:
●To improve efficient management of traffic
●To expand public transportation services
●To promote fuel efficient cars and flexible/alternative fuel vehicles
The rapid growth of transportation has increased the negative impact of pollution on the health of the population and the environment. In order to reduce this adverse impact, it is necessary to ensure the safety of transportation and reduce the number of accidents and traffic crimes, which do not meet traffic safety requirements. Under the
“Transport Development Project,” 24 transport diagnostic centers with a nationwide integrated transport database network have been established.
Increase in the Utilization of Renewable Energy
Mongolia has very high solar radiation values as well as water and wind-power resources.
High comparative costs in energy supply, low population density, and excellent renewable energy resources all translate into a high potential for utilizing renewable resources.
The National Renewable Energy Program:
In June 2005, the Parliament of Mongolia approved the National Renewable Energy
Program (2005~2020) to promote the use of renewable energy in Mongolia. The goal of the program is to increase the percentage of the renewable energy share in the total energy generation to 3~5 percent by 2010 and 20~25 percent by 2020.
In the first phase (2005~2010) of the framework of the National Renewable Energy Program, US$ 131 million was received as financial support and invested in renewable energy compounds and construction.
Currently, renewable energy comprises 4.34 percent of the installed national energy capacity of the country <Table 2>.
The 100,000 Solar Ger Program: The Mongolian government has implemented
“The 100,000 Solar Ger Project” for providing portable solar power systems or Solar Home System (SHS) in order to satisfy the basic energy needs of nomadic herder families. As part of this national project, 32,000 SHS sets have been introduced for nomadic families since 2000. On the other hand, the actual conditions of SHS use are less understood in Mongolia than in other countries. The government of Mongolia adopted a resolution in 1999 to implement “The 100,000 Solar Ger Project,” and 1032 SHS sets were introduced to nomadic families from 2001~2002. During the period from 2003~2005, 31,790 SHS sets funded by Japanese and Chinese aid were delivered to nomadic households at a 50 percent discount. During 2007~2008, 40,400
SHS sets with a capacity of 50 W each were delivered to nomadic households at a 50 percent discount due to the state budget. The implementation status of the 100,000 Solar Ger Programis presented in <Table 3>.
Electricity supply in remote soum centers through solar, wind, and diesel hybrid systems: The government of Mongolia intends to improve the supply of power to off-grid soums by introducing sustainable and independent renewable energy with a focus on solar power in order to improve telecommunication and social services such as healthcare and education. The Solar PV system, which has a capacity of 60~200 kW, is one of the best technology options for electricity supply to remote soum centers and low-demand consumers.
National program of liquefied petroleum gas: The use of liquefied petroleum gas (LPG) is increasing rapidly, and the government of Mongolia (GoM) has emphasized the importance of developing LPG use as a relatively “clean” fuel compared to other fossil fuels. The LPG Program was adopted by the government in 2006. It aims to introduce necessary safety standards and regulations as well as promote the use of LPG in the household and transportation sectors. In the
<Table 2> The Percentage of Renewable Energy Utilization in the Total Installed Power Generation Capacity C
Caappaacciittyy U
Unniitt TThheerrmmaall P Poowweerr PPllaanntt
PPoowweerr GGeenneerraattiioonn ffrroomm RReenneewwaabbllee EEnneerrggyy TToottaall HHyyddrroo SSoollaarr WWiinndd
MW 827.4 37.5 28.3 5.32 3.8
Percentage 95.66 4.34 3.28 0.62 0.44
Source: Proceedings of the National Forum of Renewable Energy, Ulaanbaatar, 2009
<Table 3> Implementation Status of the 100,000 Solar Home National Program
IImmpplleemmeennttaattiioonn ppeerriioodd 22000011--
22000022 22000033-- 22000055 22000077--
22000088 22000099-- 22001111 TToottaall Number of
households to which SHS were supplied
1,032 31,790 40,400 26,778 100,000
Percentage 1.0% 31.8% 40.4% 26.8% 100%
Cumulative
Percentage 1.0% 32.8% 73.2% 100% 100%
Source: Energy Department, Ministry of Mineral Resources and Energy
transportation sector, the goal is to achieve 90 percent usage of LPG by taxis and 20 percent for private cars. For households and catering, the aim is to increase the level of LPG use to 40 percent and 80 percent, respectively.
Measures have been taken in the form of import duty and VAT exemptions on LPG equipment.