Mongolia aims to transition to 30% solar energy in Mongolia by 2030. This will reduce its heavy reliance on coal - which currently accounts for over 90% of electricity generation. Despite challenges like infrastructure needs and investment requirements, Mongolia is making significant progress with its solar energy in Mongolia and wind projects.
Mongolia’s Renewable Energy Commitment
Coal powers over 90% of electricity generation in Mongolia. The nation's State Policy on Energy 2015–2030 targets renewable energy in Mongolia to account for 20% of installed capacity by 2023 and 30% by 2030. Mongolia has also pledged to reduce greenhouse gas emissions by 22.7% by 2030. The energy sector contributed 44.78% of the total emissions in 2020, as stated in Mongolia’s Second Biennial Update report. In 2023, Mongolia had three wind farms and nine solar farms in Mongolia - alongside several small hydro plants.
These renewable sources now account for 18.3% of installed capacity and 9.6% of the country's total electricity production. However, accelerated progress is necessary to meet the goal of 30% renewables by 2030.
The road to this Mongolia energy transition is challenging. Mongolia’s reliance on coal is deeply ingrained. Coal mining represents nearly half of exports and 90% of power generation. Additionally, power generation remains state-owned and heavily subsidized, complicating the shift to renewable sources.
Infrastructure deficiencies also hinder progress. These include insufficient access roads and inadequate transmission and grid networks. Extreme climatic conditions require robust battery storage solutions. Mongolia's dependence on imported energy to meet growing demand often results in blackouts, highlighting the need for a resilient clean energy initiative in Mongolia.
Financial Needs and Investments in Renewable Energy
If Mongolia continues to rely on fossil fuels, urban centers will face severe air pollution. This situation is like the record-breaking smog experienced in Ulaanbaatar last winter. In the ger areas, more than 60% of households use traditional coal and wood-fired stoves. As a result, air quality plummets and visibility reduce to mere meters.
To achieve the Sustainable Development Goal 7 (SDG7) on clean and affordable energy, Mongolia needs to invest an additional 2.1% of its nominal GDP per year until 2030, according to a UNDP report. This investment must come from both domestic and international sources. Financial capital and technological risk must be mobilized. Blended finance solutions for households and small-medium enterprises (SMEs) are key to the rapid adoption of renewable energy in Mongolia technologies.
Success Stories and Prospects in Solar Energy
Mongolia’s nomadic herders have pioneered the use of solar panels. More than 200,000 herder households have adopted solar energy in Mongolia since the government's ‘100,000 Solar Ger Electrification Program’ supported by the World Bank from 2001 to 2011. This initiative has laid a solid foundation for the broader adoption of solar energy in Mongolia across the country.
Looking ahead, it is crucial to further develop Mongolia solar projects and other renewable energy initiatives in Mongolia. More land must be dedicated to solar farms in Mongolia and increased investment in clean energy initiatives in Mongolia infrastructure is essential. Mongolia’s energy transition is contributing to a growing focus on environmental conservation and economic development.
The commitment to renewable energy in Mongolia is reflected in projects like those in Khorol Sum. This rural community is now powered by clean energy initiatives in Mongolia thanks to international partnerships, local municipal support, and investments from clean-energy companies. Such success stories highlight the potential of solar energy in Mongolia to transform Mongolia’s energy landscape.
Mongolia is determined to achieve its renewable energy in Mongolia targets. The country aims to cover just under 3% of its electric energy needs through solar power by 2030 and 20% by 2050. As Mongolia continues to embrace solar energy in Mongolia and other renewable sources, it sets a positive example for other nations striving for a sustainable energy future.