Energy Certification
Specialized Areas
International Renewable Energy Certificates (I-RECs)
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.
International Renewable Energy Certificates (I-RECs)
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.
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).
An I‑REC for Electricity is referred to as an I-REC(E) is an exchangeable Energy Attribute Certificate that conveys information about the production of a unit of electricity such as where the electricity was produced, the capacity of the Production Facility, and the energy source.
This ensures that each kilowatt of energy generated from renewable sources undergoes thorough certification, evaluation, and becomes tradable in the international market.
Today, 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.
IREC Key statistics
552.11M
Certificates Issued
206.07GW
Capacity
60
Countries
4685
Total devices
I-REC (E) issuance in Mongolia is facilitated by our role as the sole local issuer in the country. Our role is to register renewable energy generation facilities and issue I-REC certificates in an efficient and time conscious manner. We ensure all issuance processes have been carried out according to the I-REC standard.
Organizations or companies that own renewable energy generation facilities and are actively generating renewable energy for electricity, including government entities, private organizations, and individuals, are welcome to request the issuance of I-REC(E) certificates by contacting us.
Technologies:
Solar power
Wind power
Hydro power
BENEFITS of I-REC (E)
For Renewable Energy Producers:
Issuing I-REC (E) certificates for their renewable energy production presents an opportunity to generate additional revenue by selling I-RECs in the global REC market.
For Companies buying I-REC(E) Certificates:
Purchasing I-REC (E) certificates serves as a globally recognized decarbonization tool for both local and international companies operating in Mongolia. By addressing Scope 2 greenhouse gas emissions, these certificates assist companies in achieving their carbon reduction goals and aligning with global decarbonization efforts.
For the Energy Industry in Mongolia:
Serving as a market incentive mechanism, it actively propels the transition from fossil fuels to cleaner energy sources, by enabling renewable energy producers with additional financing opportunities and supporting decarbonization efforts of businesses. In doing so, it mitigates the detrimental consequences associated with coal consumption, notably air pollution, thus contributing to environmental sustainability and social well-being in the long run.
What is the REC issuance process?
Step 1:
Registration:
Step 2:
Registration of device:
Step 3:
REC issuance:
Note: Each REC represents 1 megawatt-hour (MWh) of renewable energy produced.
Frequently Asked Questions
Energy Efficiency Certification
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 2022, this cohort comprises 197 entities, collectively consuming over 5,500 GWh of electricity per year, contributing to 53% of the total energy generation. 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:
For more information