the role of mongolia for development of northeast asian ... 3-4 batbayar chadraa.pdf · the role of...

THE ROLE OF MONGOLIA FOR DEVELOPMENTOF NORTHEAST ASIAN SUPER GRID

Chadraa Batbayar, Ph.DHead of Ministerial Task Team on Asian Super GridE-mail: [email protected]

The 3rd Northeast Asia Energy Security Forum

The Plaza, Seoul, Republic of Korea, 17 December 2015

Contents

Mongolian energy sector and energy resource

Energy policy and legal environmentEnergy policy and legal environment

Renewable energy cooperation in North East AsiaRenewable 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) andconnected to the Russian energy system whichcovering energy demand of Ulaanbaatar city,and 14 provinces (70% of total population).

West energy system (WES)Connected to the Russian energy system andDurgun hydro power plant (12 MW) whichcovering energy demand of 3 provinces.

East energy system (EES)Coal fired thermal power plant which coveringenergy demand of 2 provinces.

Altai-Uliastai energy system (AUES)6 hydro power plant (14 MW) and Dieselgenerators which covering energy demand of2 provinces.

South region2 coal fired thermal plants (27 MW) andconnected to the Chinese power system whichcovering energy demand of Oyutolgoi coppermine deposit.

CES

EES

South

WES

AUES


5

Sustainable power generation and supply in Mongolia

Installed Capacity of Power Generation,

Total- 1178 MW

Type of PPGeneration, Million. kWh

Percentage

Combined Heat and Power (CHP) Plant

5191.3 96.3%

Diesel 8.2 0.2%

Hydro 66.3 1.2%

Wind and Solar 126 2.3%

Total 5392 100.00%

Electricity Generation by Plant Types, 2014

Source– National Statistical Committee

CHP, 1050.3 MW, 89%

Diesel, 46 MW, 4%

Hydro, 28 MW, 2%

Wind & Solar, 53.7 MW, 5%


2008RE percentage: 0.1%RE quantity: 4.9 million kWh

20143.6%192.3 million kWh

Renewable energy in total energy consumption


Preliminary estimates of geologists,geological reserves of coal in Mongolia ismore than 160 billion tons, which includesMongolia, one of the 10 countries of the world,with large coal reserves.

Mongolia has potential to be a major windpower producer. Mongolia has enormouswind power resources; Good-to-excellentwind resources equivalent to 1,100 GW ofwind electric potential.

Energy resource of Mongolia (coal and wind)


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 anaverage sunlight duration of 2,250-3,300 hours areavailable in most of the territories of Mongolia.

Energy resource of Mongolia (solar)


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.

Energy resource of Mongolia (geothermal and hydro)


Mongolian Gobi Desert is the best platform for Field test and Operation for Asian Super Grid Project

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

Action plan

8 Government Action Plan 2012-2016 2012 -

In the 1st stage 2015-2023: The stage to develop energy safety resourcesand 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 willbe taken place at least 10% of the total installed power capacity and it will increase backup capacity to 10%, andcreate fundament for renewable sector to development intensively, enhance tariff system.

In the 2nd stage 2024-2030: The stage to export secondary energy anddevelop 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. Stateowned Power companies will be become a public company. Distribution and supply service will be privatized andenergy sector will be worked as a competitive marked with regulation. Secondary energy will be exported byconnecting with North east Asian countries with high capacity DC lines.

Expected Results

State Policy on Energy (2015-2030)


Indicators of criteria 2014 он/Base year/

1st stage/by 2023 /

2nd stage/by 2030/

Reserve Capacity for Electricity Generation -10% 10 % ≤ 20% ≤Reserve Capacity for Heat Generation in Cities 3% 10 %≤ 15 % ≤Profit Share on Tariff Structure in Central Region -16.22 % 0% 5%Own Use of CHP’s 14.4 % 11.2% 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%

Greenhouse Gas Emission per 1 Gcal Power Generation 0.52 ton СО2equivalent 0.49 ton СО2 equivalent 0.47 ton СО2 equivalent

Reduction of Building Heat Loss 0% 20% 40%

Technological Achievements that have to be utilized in Energy Sector CFB

Sub CriticalCoal Bed Methane,

Battery Energy Storage, Pumped Storage

Super Critical, Ultra S/Critical,Hydrogen,

Concentrated SolarPlant

State Policy on Energy (2015-2030)


Amendment of Law on EnergyPurpose: 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


Law on Renewable energy

• Feed-in tariffs (FIT) for renewable power sources

• Law was recently updated by Parliament in June 19, 2015• New term – “Encouraging tariff” /gap between feeding tariff and

consumer’s tariff

Purpose: Promotes and supports the production of energy from renewable sources by regulating electricity pricing. January 11, 2007


Type of Energy Capacity Tariff /USD/

Grid

Wind 0.08-0.095

Hydro Up to 5 MW 0.045-0.06

Solar 0.15-0.18

Off GridWind 0.1-0.15

Solar 0.2 – 0.3

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 EnergyAmendments:

New term – “Encouraging tariff” /gap between feeding tariff andconsumer’s tariff /

• Definitions

• Regulation to relating matters in tariff system

Power Purchase Agreement and its regulations

• Regulation to relating matters


Renewable energy cooperation in North East Asia

Sustainable Energy for All (SE4ALL)Global initiative led by Secretary-General 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 REmap2030 and the SE4ALL initiative, as wellas the knowledge gaps that this studycloses in view of the requests from theIRENA Member States and the SE4ALLobjectives.


International cooperation on resource based regional energy trade

Coal Based

On-Site Electricity Production for Purpose of Export.

– 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

Renewable based

Solar and Wind Rich Resources Gobi Area

- Gobi Tec and Asia Super Grid Initiative


NORTH EAST ASIA INTEGRATION INITIATIVE

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

ASIA SUPER GRID:

WORLDWIDE INTEGRATION INITIATIVES

WORLDWIDE INTEGRATION

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 multi-donor 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 2015TA 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 Consortium27‐28th November, 2012 (Jeju,Korea)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 sub-region

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 roughly100 GW is a very large project size. Theoverall cost for the project is estimated tobe around 293 billion US dollars, withyearly maintenance and system cost of7.3 billion dollars.

GOBITEC & ASG

Jan 2014

Upscaling Rural RE: Western Region

UVS1

19 soums, population of about 80,000, capital city Ulangoom.

BAYAN-ULGII2

13 soums, population of about 100,000, capital city Olgiy.

KHOVD3

17 soums, population of about 90,000, capital city Khovd.

BAYAN-ULGII

UVS

KHOVD

DZAVHAN

GOVI-ALTAY GOVI-ALTAY

ARHANGAY

HOVSGOL

BULGAN

OVORHANGAY

OMNOGOVI

DUNDGOVI

DORNOGOVI

SUHBAATAR

HENTIYULAANBAATAR

DARHANUUL

SELENGE

DORNOD

SREP INVESTMENT PLAN FOR MONGOLIA

Upscaling Rural RE: Western Region

20 MW of Solar PV 5 MW of Wind Power

1 MW small Hydro rehabilitation 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

SREP MDBa GoM TOTAL

Total ADB WB ADB WB

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

Subtotal - 28.5 15.6 12.9 22.9 11.4 1.9 64.7

PHASE 1 - TRACK 2: Strengthening Renewable Energy Regulations

6. Technical assistance for ERC and NDC - 1.2 - 1.2 - - 0.1 1.3

Subtotal - 1.2 - 1.2 - - 0.1 1.3 PHASE 1 TOTAL 29.7 15.6 14.1 22.9 11.4 2.0 66.0

PHASE 2 7. Scale up / replication in WES and AuES

(20 MW) tbd - - - 35.0 - 3.5 38.5

8. Scale up / replication in EES (30 MW) tbd - - - 42.1 - 4.2 46.3

PHASE 1 and 2 TOTAL tbd 29.7b 15.6 14.1 100.0 11.4 9.7 150.8

TRILATERAL MEETING OF PRESIDENTS OF MONGOLIA, RUSSIAN FEDERATION AND THE PEOPLE’S REPUBLIC OF CHINA

14th SCO Summit, Dushanbe, 11 Sep 2014

On 11 September 2014, atrilateral meeting was heldbetween President of MongoliaTsakhiagiin Elbegdorj,President of the RussianFederation Vladimir Putin andPresident of the People’sRepublic of China Xi Jinping inDushanbe. At the meeting,parties discussed to coordinateMongolian “Steppe Road”project with Chinese “New SilkRoad” and other relevantprojects of Russian Federation.

“... Mongolia deems itself a shortest and key transit infrastructure forRussia by the means of exit from Europe to Asia and for China as anoutlet from Asia to Europe…”

TRILATERAL MEETING BETWEEN THE HEADS OF STATE OF MONGOLIA, RUSSIA AND CHINA

(SCO summit in Dushanbe on September 11 , 2014)

The President of MongoliaTs. Elbegdorj

“... China and Russia have already established 750 MW of 500kilovolt power transmission network. We are currently studying thefeasibility of building a transnational power grid. Furthermore, thediscussion of establishing a three-party power plant is open andMongolia’s participation in the China-Russia energy cooperation isready to be discussed …”



The President of the People’s Republic of China

Xi Jinping

The President of the People’s Republic of China

Xi Jinping

“... It is possible to transmit power lines through the territory ofMongolia, if the Chinese and Mongolian sides are interested. It mightbe decided based on economic benefits and other calculations …”



The President of the Russian FederationVladimir V. Putin

As of 2014, the operational UHV circuits are:

Name (Chinese) Type Voltage (KV)Length

(km)

Transmissioncapacity (GW) Year

Jindongnan–Nanyang–Jingmen (晋东南-南阳-荆门) UHVAC 1000 640 5.0 2009

Huainan–Zhejiang North-Shanghai（淮南-浙北-上海） UHVAC 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 13741кmTransmission capacity 59.4GW

Name (Chinese) Type Voltage (KV)Length

(km)

Transmissioncapacity (GW)

Expectedyear

Huainan–Nanjing-Shanghai（淮南-南京-上海） UHVAC 1000 2x780 2016

Xilingol League - Shandong（锡盟-山东）UHVAC 1000 2x730 9 2016

Inner Mongolia West - Tianjin（蒙西-天津南） UHVAC 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 кмTransmission capacity 78GWTotal length 28140 кт High voltage grid is coming!!!

• 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

CONCLUSION

Thank you for your attention

MINISTRY OF ENERGY

Address: Khan-Uul district, Chinggis

avenue, Government building

Phone: + (976) 99093511

Website: www.energy.gov.mn