enkhtuvshin ganbaatar ph.d candidate green school,korea .... korea university_… · import /gwh/...
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Recent trends of International cooperation towards power interconnection
ENKHTUVSHIN Ganbaatar
Ph.D candidate
Green school,Korea University
129 AUG 2017
Irkutsk, Russia
Table of Contents
• Introduction• Mongolian energy sector
• Mongolian regulatory and investment framework of power interconnection• Regulations
• Investment environment
• Multi/bilateral dialogue and cooperation towards power interconnection• Bilateral cooperation of power trade
• Multilateral cooperation towards regional power interconnection
• Global renewable energy trend • International level;
• Corporate and Local level;
• Conclusion
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Introduction
WES AUES
CES
EES
Total GDP (current U$D): 11,7 billion
Population: 3,120,606
GNP per capita (current U$D): 3870
Surface area: 1,566,000 km2 (19th)
Power installed capacity: 1178 MW
Energy mix: 89% CHP, 5% Wind& Solar PV’s,
4% Diesel, 2% Hydro
Energy access to grid: 98%Government:
Unitary-Parliamentary republic
South
3Source: worldbank.org /2015 data/
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Table of Contents
• Introduction• Mongolian energy sector
• Mongolian regulatory and investment framework of power interconnection• Regulations
• Investment environment
• Multi/bilateral dialogue and cooperation towards power interconnection• Bilateral cooperation of power trade
• Multilateral cooperation towards regional power interconnection
• Global renewable energy trend:• International level;
• Corporate and Local level;
• Conclusion
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Mongolian regulatory framework of power interconnection: Regulations
• Legal and regulatory environment for Power trade
• Energy law /2015/: Enables power export and import
• National Energy Policy Document /2015/: 2nd Term
2024-2030 The stage to export secondary energy and
develop sustainably renewable energy sector;
• Government Action Plan /2016-2020/: By maintaining
local electricity supply-demand sustainably, initiates
power export projects to PRC;
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• Ministry of Energy /Central Public Administration/
• Carry out and determine necessary strategies and policy to develop Energy export and import policy
• Energy Regulatory Committee /ERC/ • Awarding licenses to power generator, trader and transmitter etc.
• National Dispatching Centre• Dispatch energy flows through out the country
• Plan and organize Power export and import
• National and Local Power Transmission company/1+4/: • own and maintain ≥ 110𝑘𝑉 lines
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Mongolian regulatory framework of power interconnection:Investment environment:
• Concession
Law2010
Establish the framework for granting concessions to private
investors to use existing infrastructure facilities owned by the
state, and to construct new infrastructure facilities for the
purpose of providing services to the general public
• Investment Law 2013Protect the legal rights and interests of investors in the territory
of Mongolia, to establish a common legislative guarantee for
investment, to stabilize the tax environment.
Coal Fired TPP’s for Export purpose:
• Shivee Ovoo Thermal Power Plant
/TPP/
• Tevshiin Goviin TPP and others
Renewable energy:
• Egiin HPP /Government/
• Erdeneburen HPP /Government and
Private/
• Sain Shand wind farm /private/
• Tsetsii wind farm /private/
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Table of Contents
• Introduction• Mongolian energy sector
• Mongolian regulatory and investment framework of power interconnection• Regulations
• Investment environment
• Multi/bilateral dialogue and cooperation towards power interconnection• Bilateral cooperation of power trade
• Multilateral cooperation towards regional power interconnection
• Global renewable energy trend:• International level;
• Corporate and Local level;
• Conclusion
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Multi/bilateral dialogue and cooperation towards power interconnection
Bilateral cooperation of power trade• Mongolia is net importer of electricity from 2 neighbours
• National Dispatching Centre contracts exporting counterparts for national level /≥110kV/
• Regional power transmission companies makes power import agreement with regional level
Year 2010 2011 2012 2013 2014 2015
Import /GWh/ 157.5 200.6 434.25 1181.19 1389.24 1421
Export /GWh/ 20.7 21.4 21 23.3 30.4 54.2
Average import price $ 0.061 0.068 0.069 0.077 0.084 0.073
Amount payed(thousand.$) 9552 13621 21171.8 24932.8 24149.7 12884.9
Source: NDC data
Intended Trans-border Power Export projects with China4800 MW Shivee Ovoo TPP 600 MW Tevshiin Goviin TPP 600
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Oyu TolgoiCopper and Gold mine
imports 70% of total electricity
import
Power Transmission line map of Mongolia
RUS
RUS
PRC PRC
PRC
PRC
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Mongolia is
interconnected with
Russian and China
through 220 kV 2 circuit
transmission lines and 4
other low voltage
transmission lines11
Multi/bilateral dialogue and cooperation towards power interconnection
Multilateral cooperation towards regional power interconnection
• Mongolia aims to be a Power exporter in Long term• Actively cooperating with UNESCAP, Energy Charter, ADB, EBRD;
• Actively cooperating with Northeast Asian Countries, but still we don’t have formal discussion mechanism to address Power interconnection;
• Actively supporting and participating Asian super grid and Gobi Tec initiative;
• Mongolia is active member of international community: WB, AIIB, ASEM, IRENA, SCO /observer/, APEC /observer/, IGU;
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Challenges ahead:
• Strong Inter-Governmental organization is needed: UN, ADB or ?
• Super Nations in The Region: 2 permanent Members of UN Security counsel
• Government’s commitment to support private initiative
• Feasible Business model (Softbank/Private/ - KEPCO/Public/ - SGCC/Public/ -
Ministry of Energy/Public/ + Rosseti /Public/)
Nort
heast A
sia
Super
Grid
(Appr. 2
000 k
m H
VD
C)
Source: Pre feasibility study ECS /2014/
Table of Contents
• Introduction• Mongolian energy sector
• Mongolian regulatory and investment framework of power interconnection• Regulations
• Investment environment
• Multi/bilateral dialogue and cooperation towards power interconnection• Bilateral cooperation of power trade
• Multilateral cooperation towards regional power interconnection
• Global renewable energy trend:• International level;
• Corporate and Local level;
• Conclusion
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International power interconnectioninitiatives
Existing
• Buthan-India-1260MW
• Bangladesh-India-1000 MW
• India-Nepal-150 MW
Under construction
• India-Sri-Lanka-1000MW
• Iran-Pakistan-1000MW
• Nemo Link- 1000MW
• Nord Link- 1400MW
R&D
• CASA-1300 MW
• Iran-Pakistan-1000 MW
• Turkey-Iran-1200 MW
• Israel-Cyprus-Greece-2000 MW
• Tunisia-Italy-2000 MW
• Portugal-Morocco-1000 MW
Regional energy cooperation
• GMS
• NORDEL, SAPP, BritNed, Estlink 2, NorNed, Fenno-Skan 2, Skagerak 4 etc ..,
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RE100 companies committed to 100% renewable energy
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Private entities leadership /Bigger companies become bigger renewable
energy/
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Between 2010-2017 35/19/ companies signed
total 7.31 GW renewable energy PPA in USA
Cities and small communities going renewable
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• Cities are responsible for 80% GHG emission;
• 2030: 60% of population in cities;
• Over 1040 cities over 500,000 population;
Source: UN Dep. Economics and Social Affairs
Source: Bloomberg new energy finance
TOTAL NOMINAL RENEWABLE ENERGY INVESTMENT (Bn$)2004-2015 BY
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Table of Contents
• Introduction• Mongolian energy sector
• Mongolian regulatory framework of power interconnection• Regulations• Investment environment
• Multi/bilateral dialogue and cooperation towards power interconnection
• Bilateral cooperation of power trade• Multilateral cooperation towards regional power interconnection
• Conclusion
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Challenges ahead
What should be the Mongolian commitment to develop Energy cooperation with Foreign investors ?
• Government policy and legal environment should be clear and transparent for foreign investors:
• the track record of the regulating agency;• mechanisms in place for tariff adjustments;• changes in the law and the financial equilibrium
of the concession;• changes in the tax system; • predictability of policy framework;
Particularly Energy sector
• Coal can be the initial step to develop energy cooperation with Northeast Asian countries for Mongolia. However, until 2030 Mongolia aims to increase its renewable energy share up to 30% compared with 5% in 2015;
• System efficiency and TSO cooperation;
• Improvement of legal environment, Renewables certificate;
• Decentralization of energy sector VS scale of economies;
• Huge investment is required to execute power interconnection in Northeast Asia. Private institutions should drive the way.
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Thank you for your attention