The energy sector, a major national greenhouse gas emitter heavily reliant on coal for over 90% of its electricity generation, encounters obstacles in transitioning to renewable and clean energy sources. To address escalating energy demand and combat hazardous air pollution detrimental to public health, Mongolia aims to enhance energy efficiency and the promotion of renewable energy. However, the implementation of these initiatives remains inadequate.

On the other hand, Mongolia possesses significant wind and solar potential, estimated at 2,600 GW of installed capacity or 5,457 terawatt-hours of clean electricity generation annually. The government aims for a 20% share of renewable energy in total installed capacity by 2023 and 30% by 2030. However, as of 2023, renewable sources contribute only 18.3% of total installed capacity and 9.6% of electricity production. Accelerated action is necessary to achieve the 2030 goal.

In response, OLOLT Center is dedicated to fostering transparent incentive mechanisms to accelerate the transition while ensuring stakeholder inclusivity and sustainability.

As the world strives for a transition to cleaner energy, the Renewable Energy Certification (REC) mechanism emerges as a transformative instrument that has been now used effectively to promote renewable energy. It guarantees renewable energy credentials for renewable energy production by promoting transparency, accountability, and market-driven incentives.

In July 2023, the OLOLT Center became accredited by the globally-recognized International Tracking Standard Foundation (I-TRACK Foundation) to issue Renewable Energy Certificates in Mongolia. This significant milestone inaugurates a new market incentive mechanism in Mongolia, designed to enhance support for renewable energy producers and support businesses to meet their sustainability targets.

About I-TRACK Foundation

The International Tracking Standard Foundation (I-TRACK Foundation) is a non-profit organization that was founded in 2015 as the International REC Standard Foundation ( I-REC Standard), that provides global tracking standards. The standards provided by I-TRACK foundation are recognized by major reporting frameworks such as the Greenhouse Gas Protocol (GHGP), Carbon Disclosure Project (CDP), RE100 initiative of the world's most influential companies, and Science Based Targets initiative (SBTi).

I-TRACK Foundation’s I-REC (E), an internationally recognized renewable energy certificate system, has achieved widespread adoption across 60 countries spanning Asia, Oceania, Africa, South America, and Middle America. As of October 2023, the system has facilitated the issuance of over 552 million certificates, representing a combined capacity of 206.07 gigawatts. This impressive network comprises 4685 devices, showcasing the widespread commitment to renewable energy generation and sustainability on a global scale.

Source: The Evident Registry - Evident

A Renewable Energy Certificate (REC), also referred to as an Energy Attribute Certificate (EAC), represents the environmental attributes associated with one megawatt-hour (MWh) of renewable energy generation. It ensures that each kilowatt-hour of energy generated from renewable sources undergoes thorough certification and evaluation, verifying its renewable origin and environmental benefits.

REC/EAC issuance in Mongolia

As the exclusive issuer in Mongolia, the OLOLT Center facilitates the efficient issuance of RECs by registering renewable energy generation facilities and adhering strictly to the I-TRACK Foundation’s I-REC (E) standard.

Organizations or companies, including government entities, private organizations, and individual stakeholders, who own renewable energy generation facilities and are dedicated to producing renewable electricity, can obtain internationally accepted RECs in Mongolia through our services.

Under the Energy Conservation Law of Mongolia, designated consumers bear the responsibility of conducting annual energy audits, crafting energy efficiency plans, and reporting their implementation progress. As of 2023, this comprises 297 entities, collectively consuming over 6067 GWh of electricity, or consuming 55% of the total electricity generation annually. Despite these regulatory mandates, the execution of energy efficiency measures falls short, primarily due to weak legal commitments among energy-intensive consumers and a lack of financial incentives.

In response to these challenges, the OLOLT Center has launched a project to conduct a feasibility study of an innovative Energy Savings Certificate Scheme (ESCS). This initiative aims to address the root causes of deficient energy efficiency efforts and is currently underway with support from USAID funding. It marks our first step towards effectively addressing the complex energy efficiency landscape in Mongolia.

Introducing the Feasibility of Energy Savings Certificate Scheme

Project name: Feasibility of Energy Savings Certificate Scheme

Initiated and implemented by: OLOLT Center

Supported by: Energy Regulatory Commission

Financed by: USAID

Duration: 12 months

Potential Benefits of Energy Savings Certificates:

• Actively promotes and accelerates energy efficiency measures among consumers through incentives
• Provides additional income opportunities for energy consumers by incentivizing reductions in energy consumption
• Increases collaboration between private and public partnerships
• Promotes the adoption of advanced energy-efficient technologies
• Enables energy consumers to make profitable long-term investments in energy performance
• Contributes to the potential reduction of greenhouse gas emissions associated with energy consumption
• Enhances the implementation of energy efficiency policies
• Increases consumer awareness and builds capacity in energy efficiency measures