
The knowledge and support technical assistance (TA) will accelerate renewable energy penetration in the Central Energy System (CES) in Mongolia through (i) assessment of current status and future projection of CES, (ii) identification of innovative energy storage technologies, and (iii) assessment of their market potential and development of energy storage deployment strategy.
The TA is included in the Mongolia: Country Operation Business Plan (2018-2020). The propose TA is fully aligned with the Country Partnership Strategy (2017-2020) priority on improving natural resource management and broadening climate change response to support the government''s priorities on the Mongolia Sustainable Development Vision 2030. The TA will also support the strategic priorities of the Asian Development Bank''s (ADB) Midterm Review of Strategy 2020 to mitigate climate change and promote environmental sustainability.
Energy / Energy utility services
The knowledge and support technical assistance (TA) will accelerate renewable energy penetration in the Central Energy System (CES) in Mongolia through (i) assessment of current status and future projection of CES, (ii) identification of innovative energy storage technologies, and (iii) assessment of their market potential and development of energy storage deployment strategy.
The current energy capacity development cannot meet increasing demand without additional investment. Considering demographic and economic development, heat demand deficit in Ulaanbaatar is expected to grow from 44 gigacalorie per hour (Gcal/hr) in 2014 to 749 Gcal/hr in 2025 at an average annual growth rate of 32.3%. Power demand is expected to grow at 133 megawatt (MW) per annum from 697 MW in 2012 to 3,161 MW in 2030.
The energy storage technologies can offer a great level of flexibility at both temporal and spatial scales for integration of electricity and heat systems. They are identified to be valuable in most energy systems, with or without high levels of variable renewable generation, to (i) improve efficiency of the energy system, (ii) help to integrate higher levels of variable renewable resources, (iii) increase energy access, and (iv) improve electricity grid stability, flexibility, reliability and resilience. The TA will identify technically feasible and financially viable energy storage technologies within the Mongolian energy system and develop viable commercial solutions for scaling up their deployment.
Renewable energy capacity increased
Readiness for investments in energy-storage technologies increased
Status and supply-demand projection of electricity and heat in the CES assessed
Technically feasible energy-storage technologies identified
Market potential for energy storage assessed
Energy-storage deployment strategy developed
(i) Mobilization has been completed.
(iii) Interim report has been submitted and approved.
(iv) Study tour in Japan (11-14 May 2019) and interim workshop (21 May 2019) were completed.
(v) Draft final report has been submitted and cleared.
(vii) The TA has utilized 92% of its total TA resources.
The interim workshop and study tour (Japan) were completed on 21 May 2019, and 11-14 May 2019, respectively. The final report was completed in June 2020.
ADB has been in constant communication with the Ministry of Energy to support the approval of the First Utility Scale Energy Storage Project (Loan 3874, approved on 22 April 2020) for $100 million.
ADB will administer the technical assistance. ADB''s Energy Division, East Asia Department will select, administer, supervise consulting firm''s outputs for the TA, and evaluate the consulting firm. The implementation arrangements are summarized in the table.
ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions.
The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
The main objective of the technical assistance (TA) was to accelerate the penetration of renewable energy in the Central Energy System (CES) in Mongolia by assessing the status and supply–demand projection of electricity and heat in the CES, identifying innovative energy storage technologies, assessing the market potential for energy storage, and developing an energy storage deployment strategy. This project was expected to lead to increased renewable energy capacity in Mongolia.
This report validates the completion report's assessment of the technical assistance.
IED overall assessment is successful.
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