THE ROLE OF MONGOLIA FOR DEVELOPMENT OF NORTHEAST ASIAN SUPER GRID

The 3rd Northeast Asia Energy Security Forum
THE ROLE OF MONGOLIA FOR DEVELOPMENT
OF NORTHEAST ASIAN SUPER GRID
Chadraa Batbayar, Ph.D
Head of Ministerial Task Team on Asian Super Grid
E-mail: [email protected]
The Plaza, Seoul, Republic of Korea, 17 December 2015
Contents
Mongolian energy sector and energy resource
Energy policy and legal environment
Renewable energy cooperation in North East Asia
MONGOLIAN ENERGY SECTOR AND
ENERGY RESOURCES
Energy Sector of Mongolia





Central energy system (CES)
5 coal fired thermal plants (987.3 MW) and
connected to the Russian energy system which
covering energy demand of Ulaanbaatar city,
and 14 provinces (70% of total population).
West energy system (WES)
Connected to the Russian energy system and
Durgun hydro power plant (12 MW) which
covering energy demand of 3 provinces.
East energy system (EES)
Coal fired thermal power plant which covering
energy demand of 2 provinces.
Altai-Uliastai energy system (AUES)
6 hydro power plant (14 MW) and Diesel
generators which covering energy demand of
2 provinces.
South region
2 coal fired thermal plants (27 MW) and
connected to the Chinese power system which
covering energy demand of Oyutolgoi copper
mine deposit.
CES
WE
S
The Plaza, Seoul, Republic of Korea, 17 December 2015
EE
S
AUES
South
Sustainable power generation and supply in Mongolia
Installed Capacity of Power
Generation,
Total- 1178 MW
Electricity Generation by Plant Types,
2014
Generation,
Million. kWh
Percentage
5191.3
96.3%
Diesel
8.2
0.2%
Hydro
66.3
1.2%
Wind and Solar
126
2.3%
Total
5392
100.00%
Type of PP
Wind & Solar,
53.7 MW, 5%
Combined Heat and
Power (CHP) Plant
Hydro, 28
MW, 2%
Diesel, 46
MW, 4%
CHP, 1050.3
MW, 89%
Source– National Statistical Committee
5
The Plaza, Seoul, Republic of Korea, 17 December 2015
Renewable energy in total energy consumption
RE percentage:
RE quantity:
2008
0.1%
4.9 million kWh
The Plaza, Seoul, Republic of Korea, 17 December 2015
2014
3.6%
192.3 million kWh
Energy resource of Mongolia (coal and wind)
Preliminary
estimates
of
geologists,
geological reserves of coal in Mongolia is
more than 160 billion tons, which includes
Mongolia, one of the 10 countries of the world,
with large coal reserves.
Mongolia has potential to be a major wind
power producer. Mongolia has enormous
wind power resources; Good-to-excellent
wind resources equivalent to 1,100 GW of
wind electric potential.
The Plaza, Seoul, Republic of Korea, 17 December 2015
Energy resource of Mongolia (solar)
An annual average amount of solar energy is
1,400 kWh/m2/y with solar intensity of 4.3-4.7
kWh/m2 per day.
About 300-330 sunny days per year with an
average sunlight duration of 2,250-3,300 hours are
available in most of the territories of Mongolia.
The Plaza, Seoul, Republic of Korea, 17 December 2015
Energy resource of Mongolia (geothermal and hydro)
There are over 40 indications of geothermal
manifestations from those biggest springs such as
Tsenkher, Khujirt, Taragt and Shargaljuut located
in the Khangai region, may be used for energy
production purposes
There are 3800 small and big streams and rivers in
Mongolia, and available power could be 6417.7
megawatts, which will deliver 56.2 billion kWh of
electric energy in a year.
Mongolian Gobi Desert is the best platform for Field test
and Operation for Asian Super Grid Project
The Plaza, Seoul, Republic of Korea, 17 December 2015
ENERGY POLICY AND LEGAL
ENVIRONMENT
Government policy and programs on energy development
Name of Documents
Approved
Update and Status
Legal frameworks
1
Energy Law of Mongolia
2001
2011 and 2015
2
Concession Law
2010
-
3
Renewable Energy Law of Mongolia
2007
2015
Development programs
4
State Policy on Energy
2015
-
5
“100000 Solar Ger” National Program
1999
end 2012
6
Program on Integrated Power Energy System
2002
2007 and end 2015
7
National Renewable Energy Program
2005
end 2015
2012
-
Action plan
8
Government Action Plan 2012-2016
State Policy on Energy (2015-2030)
Expected Results
In the 1st stage 2015-2023: The stage to develop energy safety resources
and backup capacity, establish a foundation for the development of renewable,
enhance normal documents and improve legal environment.
The installed power capacity will be doubled, and start using critical technology with high parameters. Hydro will
be taken place at least 10% of the total installed power capacity and it will increase backup capacity to 10%, and
create fundament for renewable sector to development intensively, enhance tariff system.
In the 2nd stage 2024-2030: The stage to export secondary energy and
develop sustainably the renewable sector.
The backup capacity of power system will be reach at 20% and share of renewables will be reach at 30%.
Integrated smart energy system will be created by connecting regions with high capacity transmission lines. State
owned Power companies will be become a public company. Distribution and supply service will be privatized and
energy sector will be worked as a competitive marked with regulation. Secondary energy will be exported by
connecting with North east Asian countries with high capacity DC lines.
The Plaza, Seoul, Republic of Korea, 17 December 2015
State Policy on Energy (2015-2030)
2014 он
/Base year/
-10%
3%
-16.22 %
14.4 %
1st stage
/by 2023 /
10 % ≤
10 %≤
0%
11.2%
2nd stage
/by 2030/
20% ≤
15 % ≤
5%
9.14 %
Transmission & Distribution Loss /excluding Oyutolgoi/
13.7%
10.8%
7.8%
Share of Renewables on total Installed Capacity for
Domestic Supply
7.62%
20%
30%
0.52 ton СО2
equivalent
0.49 ton СО2 equivalent
0.47 ton СО2 equivalent
0%
20%
40%
CFB
Sub Critical
Coal Bed Methane,
Battery Energy Storage,
Pumped Storage
Super Critical, Ultra
S/Critical,
Hydrogen,
Concentrated Solar
Plant
Indicators of criteria
Reserve Capacity for Electricity Generation
Reserve Capacity for Heat Generation in Cities
Profit Share on Tariff Structure in Central Region
Own Use of CHP’s
Greenhouse Gas Emission per 1 Gcal Power Generation
Reduction of Building Heat Loss
Technological Achievements that have to be utilized in
Energy Sector
The Plaza, Seoul, Republic of Korea, 17 December 2015
Amendment of Law on Energy
Purpose:
 Enhance legal environment for investors in energy sector of Mongolia
Amendments:
 Utilization of Natural gas /coal bed methane/
• Definitions
• Regulation to relating matters for gas supply infrastructure
 Interagency Relationship
• Obligation of National Dispatching Center
 Independent Power Producer and its regulations
 Power Purchase Agreement and its regulations
 Interrelationship between supplier and consumer
• Obligation
The Plaza, Seoul, Republic of Korea, 17 December 2015
Law on Renewable energy
Purpose: Promotes and supports the production of energy from
renewable sources by regulating electricity pricing. January 11, 2007
• Feed-in tariffs (FIT) for renewable power sources
Type of Energy
Capacity
Wind
Grid
Off Grid
Hydro
Tariff /USD/
0.08-0.095
Up to 5 MW
0.045-0.06
Solar
0.15-0.18
Wind
0.1-0.15
Solar
0.2 – 0.3
• Law was recently updated by Parliament in June 19, 2015
• New term – “Encouraging tariff” /gap between feeding tariff and
consumer’s tariff
The Plaza, Seoul, Republic of Korea, 17 December 2015
Amendment of Law on Renewable energy
Purpose:
 Enhance financial situation of single buyer model of Power sector and
ensure feeding tariffs in the Law on Renewable Energy
Amendments:
 New term – “Encouraging tariff” /gap between feeding tariff and
consumer’s tariff /
• Definitions
• Regulation to relating matters in tariff system
 Power Purchase Agreement and its regulations
• Regulation to relating matters
The Plaza, Seoul, Republic of Korea, 17 December 2015
Renewable energy cooperation in North
East Asia
Sustainable Energy for All
(SE4ALL)
Global initiative led by SecretaryGeneral of the UN. Its objectives of:
 Universal access to modern energy
services.
 Doubling energy intensity improvements
between today and 2030.
 Doubling the global share of renewable
energy by 2030.
REmap - 2030
It introduces the link between REmap
2030 and the SE4ALL initiative, as well
as the knowledge gaps that this study
closes in view of the requests from the
IRENA Member States and the SE4ALL
objectives.
The Plaza, Seoul, Republic of Korea, 17 December 2015
International cooperation on resource based
regional energy trade
Coal Based
Renewable based
On-Site Electricity Production for Purpose of
Export.
–
Solar and Wind Rich Resources Gobi Area
-
Gobi Tec and Asia Super Grid Initiative
Abundant thermal coal resources
• Shivee-Ovoo brown coal deposite
• Aduunchuluun brown coal deposite
• Tavantolgoi and Gashuun Sukhait
hard coal deposites
–
China, Korea, Japan lead its Electricity
demand growth in the region
The Plaza, Seoul, Republic of Korea, 17 December 2015
WORLDWIDE INTEGRATION
ASIA SUPER GRID:
WORLDWIDE INTEGRATION INITIATIVES
SUB REGIONAL INTEGRATION
• ASEAN Power Grid and Energy Market Integration
• SAARC Energy Ring and Market for Electricity
• CASA 1000 and Central Asia-South Asia Regional
Electricity Market
• Greater Mekong Sub-region Power Market
• North-East Asian Super Grid and Gobitec
• Unified Energy System of Central Asia
NORTH EAST ASIA INTEGRATION INITIATIVE
Policy Advisory Technical Assistance for Mongolia’s
Strategy for Northeast Asia Power System Interconnection
In 2013, the Government of Mongolia requested the Asian Development Bank (ADB) to
provide policy advisory technical assistance (TA) to prepare the country’s strategy for
Northeast Asia power interconnection, and it is included in Mongolia’s country
operation and business plan (COBP) 2014–2016
The total cost of the TA is estimated at $1,750,000 which will be financed on a grant
basis by other trust fund and administered by ADB. A $750,000 funding from multidonor clean energy fund under the Clean Energy Financing Partnership Facility,
$500,000 funding from the PRC’s Regional Cooperation and Poverty Reduction Fund,
$500,000 from the Republic of Korea’s e-Asia and Knowledge Partnership Fund.
Project processing and implementation is tentatively scheduled as follows:
Commencement of TA
:
II January 2015
TA completion
:
III January 2018
THE TA AIMS
• Develop a power system interconnection road map for Mongolia, which can
contribute to the realization of the Northeast Asian power system integration in the
future.
• The TA will conduct a comprehensive and analytical study to assess power system
interconnection in the Northeast Asia sub-region, which includes technical,
economic, legal, and institutional assessment to identify opportunities and barriers
that each country, as well as the sub-region as a whole may face;
• Develop Mongolia’s strategy and its action plan detailing investment plan and
approaches to attract private and/or public investment for transmission system
including high voltage direct current lines and further power system
interconnection;
• Organize knowledge sharing and consensus building activities on the Northeast
Asia power system interconnection through international workshops and
conferences (i.e., Mongolia, Peoples’ Republic of China, Republic of Korea, Japan,
and Philippines); and (iv) stimulate key institutions and support their initiation of a
regional knowledge and investment platform.
Agreements for International Consortium
6th November, 2012 (Ulaanbaatar, Mongolia)
The Government of
Mongolia hosted the first
regional conference on
the power system
interconnection in
November 2012, which
was attended by
representatives from
non-governmental
organizations, research
institutes, and private
sectors from the subregion
27‐28th November, 2012 (Jeju,Korea)
GOBITEC & ASG
MOU signed March 2013 between
ENERGY CHARTER SECRETARIAT (ECS)
ENERGY ECONOMICS INSTITUTE OF THE
REPUBLIC OF KOREA (KEEI)
ENERGY SYSTEMS INSTITUTE OF THE
RUSSIAN FEDERATION (ESI)
MINISTRY OF ENERGY OF MONGOLIA
(MOE)
JAPAN RENEWABLE ENERGY
FOUNDATION (JREF)
The planned installed capacity of roughly
100 GW is a very large project size. The
overall cost for the project is estimated to
be around 293 billion US dollars, with
yearly maintenance and system cost of
7.3 billion dollars.
Jan 2014
SREP INVESTMENT PLAN FOR MONGOLIA
Upscaling Rural RE: Western Region
1
DARHANUUL
HOVSGOL
UVS
BAYANULGII
DZAVHAN
SELENGE
DORNOD
ULAANBAATAR
KHOVD
GOVI-ALTAY
19 soums, population of about 80,000,
capital city Ulangoom.
BULGAN
ARHANGAY
GOVI-ALTAYOVORHANG
AY
UVS
HENTIY
2
SUHBAATAR
DUNDGOVI
BAYAN-ULGII
13 soums, population of about
100,000, capital city Olgiy.
DORNOGOVI
OMNOGOVI
3
KHOVD
17 soums, population of about 90,000,
capital city Khovd.
Upscaling Rural RE: Western Region
20 MW of Solar PV
1 MW small Hydro
rehabilitation
5 MW of Wind Power
Shallow Ground Heat Pumps (5
locations)
Upscaling Rural RE: Western Region
• Western region has abundant renewable energy resources (hydro,
wind, and solar)
• Renewable energy deployment is the highest priority for sustainable
power supply and reduce heavy dependence on electricity import
SREP Financing Plan
(US$ million)
Private
Sector
MDBa
SREP
Total
ADB
WB
ADB
WB
GoM
TOTAL
Investment Plan Components
PHASE 1 - TRACK 1: Upscaling Rural Renewable Energy
1.
Solar PV power plants 2x10 MW
-
24.8
12.4
12.4
11.4
11.4
1.0
48.6
2.
Wind energy plant 1 X 5 MW
-
-
-
-
11.5
-
0.5
12.0
3.
Small hydropower development X 1
-
1.2
1.2
-
-
-
0.1
1.3
4.
Shallow Ground Heat Pumps x 5
-
1.0
1.0
-
-
-
0.1
1.1
5.
Technical assistance
-
1.5
1.0
0.5
-
-
0.2
1.7
-
28.5
15.6
12.9
22.9
11.4
1.9
64.7
Subtotal
PHASE 1 - TRACK 2: Strengthening Renewable Energy Regulations
6.
Technical assistance for ERC and NDC
Subtotal
-
1.2
-
1.2
-
-
0.1
1.3
-
1.2
-
1.2
-
-
0.1
1.3
29.7
15.6
14.1
22.9
11.4
2.0
66.0
tbd
-
-
-
35.0
-
3.5
38.5
tbd
-
-
-
42.1
-
4.2
46.3
tbd
29.7b
15.6
14.1
100.0
11.4
9.7
150.8
PHASE 1 TOTAL
PHASE 2
7.
8.
Scale up / replication in WES and AuES
(20 MW)
Scale up / replication in EES (30 MW)
PHASE 1 and 2 TOTAL
TRILATERAL MEETING OF PRESIDENTS OF MONGOLIA,
RUSSIAN FEDERATION AND THE PEOPLE’S REPUBLIC OF CHINA
On 11 September 2014, a
trilateral meeting was held
between President of Mongolia
Tsakhiagiin
Elbegdorj,
President of
the Russian
Federation Vladimir Putin and
President of the People’s
Republic of China Xi Jinping in
Dushanbe. At the meeting,
parties discussed to coordinate
Mongolian
“Steppe
Road”
project with Chinese “New Silk
Road” and other relevant
projects of Russian Federation.
14th SCO Summit, Dushanbe, 11 Sep 2014
“... Mongolia deems itself a shortest and key transit infrastructure for
Russia by the means of exit from Europe to Asia and for China as an
outlet from Asia to Europe…”
The President of Mongolia
Ts. Elbegdorj
TRILATERAL MEETING BETWEEN THE HEADS OF STATE OF MONGOLIA,
RUSSIA AND CHINA
(SCO summit in Dushanbe on September 11 , 2014)
“... China and Russia have already established 750 MW of 500
kilovolt power transmission network. We are currently studying the
feasibility of building a transnational power grid. Furthermore, the
discussion of establishing a three-party power plant is open and
Mongolia’s participation in the China-Russia energy cooperation is
ready to be discussed …”
The President of the People’s Republic of
China
Xi Jinping
TRILATERAL MEETING BETWEEN THE HEADS OF STATE OF MONGOLIA, RUSSIA
AND CHINA
(SCO summit in Dushanbe on September 11 , 2014)
“... It is possible to transmit power lines through the territory of
Mongolia, if the Chinese and Mongolian sides are interested. It might
be decided based on economic benefits and other calculations …”
The President of the Russian Federation
Vladimir V. Putin
TRILATERAL MEETING BETWEEN THE HEADS OF STATE OF MONGOLIA, RUSSIA
AND CHINA
(SCO summit in Dushanbe on September 11 , 2014)
As of 2014, the operational UHV circuits are:
Length
Name (Chinese)
Type
Transmission
capacity (GW)
Voltage (KV)
(km)
Year
Jindongnan–Nanyang–Jingmen (晋东南-南阳 UHVAC
-荆门)
1000
640
5.0
2009
Huainan–Zhejiang North-Shanghai（淮南-浙 UHVAC
北-上海）
1000
2x649
8.0
2013
Zhejiang North - Fuzhou（浙北-福州）
UHVAC
1000
2x603
6.8
2014
Yunnan - Guangdong（云南-广东）
UHVDC
±800
1373
5
2009
Xiangjiaba–Shanghai（向家坝-上海）
UHVDC
±800
1907
6.4
2010
Jinping – Sunan（锦屏-苏南）
UHVDC
±800
2059
7.2
2012
Nuozadu - Guangdong（糯扎渡-广东）
UHVDC
±800
1413
5
2013
Hami – Zhengzhou（哈密-郑州）
UHVDC
±800
2192
8
2014
Xiluodu - Zhejiang West（溪洛渡-浙西）
UHVDC
±800
1653
8
2014
Total length 13741кm
Transmission capacity 59.4GW
Name (Chinese)
Type
Voltage (KV)
Length
(km)
Transmission
capacity (GW)
Expected
year
Huainan–Nanjing-Shanghai（淮南-南京- UHVAC
上海）
1000
2x780
Xilingol League - Shandong（锡盟-山东） UHVAC
1000
2x730
Inner Mongolia West - Tianjin（蒙西-天津 UHVAC
南）
1000
2x608
2016
Yuheng - Weifang（榆横-潍坊）
UHVAC
1000
2x1049
2017
Ningxia East - Zhejiang（宁东-浙江）
UHVDC
±800
1720
8
2016
Shanxi North–Jiangsu（晋北-江苏）
UHVDC
±800
1119
8
2017
Jiuquan–Hunan（酒泉-湖南）
UHVDC
±800
2383
8
2017
Xilingol League–Jiangsu（锡盟-江苏）
UHVDC
±800
1620
10
2017
Shanghaimiao–Shandong（上海庙-山东） UHVDC
±800
1238
10
2017
Length 14414 км
Transmission capacity 78GW
Total length 28140 кт
2016
9
2016
High voltage grid is coming!!!
CONCLUSION
• Mongolia wishes to be RE export
country to supply clean electricity to
neighboring countries in the future,
• Mongolia will start preparing power
interconnection road map, and building
coordination framework with China,
Korea, Russia, and Japan, with ADB TA
to be commenced in early 2016
• After successful completion, strongly
recommend to each Governments for
political decision
MINISTRY OF ENERGY
Thank you for
your attention
Address: Khan-Uul district, Chinggis
avenue, Government building
Phone: + (976) 99093511
Website: www.energy.gov.mn