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Technical Assistance Consultant's Report Mongolia: Strategy For Technical Assistance Consultant’s R eport Project Number: 48030-001 February 2020 Mongolia: S trategy for Northeast Asia Power S ystem Interconnection (Cofinanced by the Climate Change Fund, the People’s R epublic of China R egional Cooperation and Poverty R eduction Fund, and the R epublic of Korea e-Asia and Knowledge Partnership Fund) Prepared by E lectricite de France Paris, France For the Ministry of E nergy, Mongolia This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. TA 9001-MON: Strategy for Northeast Asia Power S ystem Interconnections EDF References: CIST – DCO – PhL – 17 - 228 This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. Strategy for NAPSI Inception Report - June 2017 FOREWORD The project Team would like to thank: - The Ministry of Energy of Mongolia for easing direct discussions with the National Dispatching Center, TRANSCO and Public Entities in Mongolia - TСe ADB’s Country CoordТnators of MonРolТa, People’s RepublТc of CСТna, RepublТc of Korea, Japan for their support: Mongolia: Mr. Byambasaikhan PRC: Ms. Geng Dan (Danna) ROK: Mr. Jung-Hwan Kim Japan: Mr. Omatsu Ryo and Mr. Shota Ichimura Here is a reminder of the place of the Module 1 in the Project organization: 1 EDF ELECTRICITE DE FRANCE – with a capital of 1 006 625 696.50 euros – TA-9001 MON: Strategy for Northeast Asia Power System Interconnection 552 081 371 R.C.S. Paris EDF References: CIST – DCO – PhL – 17 – 228 www.edf.fr Strategy for NAPSI Inception Report - June 2017 PREFACE This document1 Тs tСe InceptТon Report for tСe AsТan Development Bank’s TecСnТcal Assistance (TA) No. TA-9001 MON: Strategy for Northeast Asia Power System Interconnection2. The Inception Report draws upon the consultations and analytical work conducted by the TA Team of consultants in collaboration with senior officers from Ministry of Energy. The report takes into account the consultations held with numerous stakeholders including the participants to the Inception Workshop held on 20th June 2017 in Ulaanbaatar and the comments by Ministry of Energy and Asian Development Bank. The views presented in the report are the responsibility of the TA Team and do not necessarily reflect the view of the Government of Mongolia and Asian Development Bank. The Project Team would like to thank the Authorities, the Utilities, the representatives and the experts of all countries for consideration and contributions. Philippe Lienhart TA-9001 MON Team Leader EDF Ulaanbaatar, June 20th 2017 1 To be referred to as « ADB TA-9001 MON (2017) Inception Report. Technical Assistance for the Strategy for Northeast Asia Power System Interconnection, Asian Development Bank, May 2017. 2 https://www.adb.org/projects/48030-001/main 2 EDF ELECTRICITE DE FRANCE – with a capital of 1 006 625 696.50 euros – TA-9001 MON: Strategy for Northeast Asia Power System Interconnection 552 081 371 R.C.S. Paris EDF References: CIST – DCO – PhL – 17 – 228 www.edf.fr Strategy for NAPSI Inception Report - June 2017 Table of contents Executive summary ...............................................................................................................................12 1. Introduction ...................................................................................................................................19 2. Kick-off and general status of project...........................................................................................20 3. Preliminary tasks ...........................................................................................................................22 3.1. Visits ..................................................................................................................................22 3.1.1. Agenda of visits ......................................................................................................23 3.1.1.1. Acknowledgements ..........................................................................................23 3.1.1.2. Identification of the stakeholders ....................................................................23 3.1.1.3. Need for complementary visits ........................................................................23 3.2. Objectives, challenges and risks .........................................................................................23 3.2.1. Background ............................................................................................................23 3.2.2. Objectives ..............................................................................................................23 3.2.3. Challenges, risks and preventive actions ...............................................................24 3.3. Planning and Staffing .........................................................................................................26 3.3.1. Planning ................................................................................................................26 3.3.2. Project team composition: Consultants and Experts ............................................27 3.3.3. Deadlines ..............................................................................................................28 4. Data collection ..........................................................................................................................32 4.1. Methodology .......................................................................................................................32 4.1.1. This Review and Data Gathering consistence .......................................................32 4.1.2. Treatment of Required data ...................................................................................32 4.1.3. Required economic data ........................................................................................32 4.1.4. Existing generation mixes ......................................................................................34 4.1.5. Planned generation development ...........................................................................35 4.1.6. Historical and existing demand .............................................................................35 4.1.7. Required transmission grid data ............................................................................35 4.1.7.1. Present and future bulk power system .............................................................35 4.1.7.2. Operation of the bulk power system ................................................................36 4.1.7.3. Existing system performance ...........................................................................36 4.1.7.4. Protection schemes ..........................................................................................36 4.1.7.5. Environmental data .........................................................................................36 4.1.8. Methodology for Collecting Grid and Power Data ...............................................37 4.2. Report and Data collected ..................................................................................................38 3 EDF ELECTRICITE DE FRANCE – with a capital of 1 006 625 696.50 euros – TA-9001 MON: Strategy for Northeast Asia Power System Interconnection 552 081 371 R.C.S. Paris EDF References: CIST – DCO – PhL – 17 – 228 www.edf.fr Strategy for NAPSI Inception Report - June 2017 4.2.1. Mongolia ................................................................................................................38 4.2.2. China......................................................................................................................43 4.2.3. Japan......................................................................................................................44 4.2.4. Republic of Korea ..................................................................................................45 4.2.5. Russia .....................................................................................................................47 4.2.6. Completion of the data base ..................................................................................49 5. Overview of the next steps ........................................................................................................50 5.1. Module 2: Market and Power Trade Assessment ...............................................................50 5.1.1. Review of the electricity sector ..............................................................................50 5.1.2. Assessment of the power generation and import ...................................................53 5.1.3. Cost of imported power and tariffs of generation sources ....................................58 5.1.4. Renewable generation already implemented in Mongolia ....................................60 5.1.5. Assessment of the existing transmission network ...................................................64 5.1.6. Deliverables of Module 2 .......................................................................................70 5.2. Module 3: Planning and evaluation criteria - Assumptions for the studies .......................70 5.2.1. Technical Criteria ..................................................................................................70 5.2.2. Economical-financial criteria ................................................................................71
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