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The Ministry of Energy is responsible for developing and implementing policies and laws on electricity. The Energy Regulatory Commission is responsible for regulating the sector;(…); and the National Renewable Energy Center promotes renewable energy technologies.

Table A3. 1 State owned enterprises, June 2013
State owned companies
Name: National renewable energy center
Shares owned by the State: 100

In addition to the laws affecting electricity generation, transmission, and distribution, Government policy is set out in a number of programmes including the Program on Integrated Power Energy System to integrate the regional networks into a national grid; and the National Renewable Energy Program. (…)

Within the framework of the implementation of Law on Renewable Energy adopted in 2007, "National Renewable energy program (2005-2020)", policy is followed to promote production of renewable energy. Renewable energy resources provide 8% of total energy supply by its capacity and 2% energy production. According to the "National Renewable energy program (2005-2020)", the Government of Mongolia has set the target to increase electricity generation from Renewables 20-25% by the year 2020. A wind power plant with 50 MWatt capacity in Salhit is operating properly.

It has been stated that: "The revenues generated by existing power stations are less than the overall costs required to generate energy which is why power stations are heavily indebted. As a result, the Mongolian energy sector is not particularly attractive in terms of new investment. At present, the Mongolian Government has neither a framework in place, nor strategies or incentive mechanisms to encourage energy efficiency and energy savings. In most cases, the actors in the energy sector, industrial users and end users are not fully aware of how they can save energy and be more efficient."

In response the authorities noted that the main priorities for the Government are to create the institutional framework for private sector participation, to improve the efficiency of the energy sector, to facilitate the development of renewable energy, to improve economic and financial performance of state-owned energy companies, and to promote competition in the sector. (…)

Within framework of major restructuring of the energy sector, enhance
public-private-partnership in order to ensure stable operation and supply national energy demand, which is increasing constantly, "Energy law" was amended in 2011. With Technical assistance of ADB, renewing of "Energy sector system" program is started based on revised "Energy sectors development plan". "Law on Energy saving" is drafted in order to create mechanism to promote energy efficiency and energy saving

Table 2.2 Main trade-related laws
Minerals and energy
Legislation: Renewable Energy Law
Year: 2007
Description: Regulates relations on generation of power using renewable energy sources and its delivery

The principle legislation governing the energy sector is set out in several laws, including:
(…)
- the Renewable Energy Law of 2007, which sets out the licensing requirements for producers of electricity from renewable sources (including hydro). It also sets out a range of possible tariffs that the Energy Regulatory Commission may apply to buyers of electricity from generators connected to the grid and the regulatory boards of aimags and Ulaanbaatar for stand-alone power sources (Table 4.14); (…)

Table 4.14 Renewable energy price and tariff
(US$ per kWh)
Source (Tariff)
Generators connected to the grid
Wind (0.080 to 0.950)
Hydro (0.045 to 0.060)
Solar (0.150 to 0.180)

Stand-alone generators
Wind (0.100 to 0.150)
Hydro
- Plant capacity < 500 kW (0.080 to 0.100)
- Plant capacity 501 to 2,000 kW (0.050 to 0.060)
- Plant capacity 2,001 to 5,000 kW (0.045 to 0.050)
Solar (0.200 to 0.300)