Renewable Energy

Challenges

  • At COP28, countries agreed on the need for collective progress in transitioning away from fossil fuels, which account for nearly 90% of global carbon dioxide emissions. Moving towards cleaner energy systems in a just, orderly, and equitable way is essential. To accelerate efforts in this crucial decade and reach net zero emissions by 2050, renewable energy capacity must be tripled, and the global rate of energy efficiency needs to be doubled by 2030.
  • Mongolia’s energy sector, predominantly reliant on coal for over 90% of electricity generation, faces a crucial moment for change. The Government of Mongolia, under its State Policy on Energy (2015–2030), aims to increase the renewable energy share to 30% by 2030, while also committing to a 22.7% reduction in greenhouse gas emissions by 2030. As of 2020, the energy sector contributed 44.78% of the country's total emissions.
  • Mongolia’s renewable energy sector plays a critical role in contributing to the country’s commitments to the Sustainable Development Goals (SDGs) and its Nationally Determined Contributions (NDCs) under the Paris Agreement. Mongolia aims to increase the share of renewable energy in its national energy mix. The government plans to increase renewable energy capacity, particularly from wind and solar sources, which have vast potential in Mongolia.
  • However, progress is slow. Only 18.3% of Mongolia’s installed capacity comes from renewables, contributing just 9.6% of total electricity production as of 2023. Additionally, only about 50% of the population has access to clean cooking fuels, and in rural areas, this drops below 20%. Mongolia’s economic reliance on coal for export revenue and power generation, alongside state ownership and subsidies, poses significant barriers to diversification and a shift towards clean energy.
  • To achieve its renewable energy goals and improve public health, Mongolia must accelerate clean energy infrastructure development, attract investments, and address policy and infrastructure challenges.

Potential Solutions

Mongolia has significant potential for renewable energy due to its vast natural  resources. Improving energy storage solutions, fostering international partnerships, and creating a stable regulatory environment can help unlock this potential. As of 2023, Mongolia has 3 wind farms, 9 solar farms, and small hydropower plants, accounting for 18.3% of the total installed capacity and only 9.6% of total electricity production. Which means that the action has to be accelerated if the ambition of 30% renewable energy share is to be reached in six years period.