Recent trends of International cooperation towards power interconnection

Transcription

1 Recent trends of International cooperation towards power interconnection ENKHTUVSHIN Ganbaatar Ph.D candidate Green school,korea University 29 AUG 2017 Irkutsk, Russia 1

2 Table of Contents Introduction Mongolian energy sector Mongolian regulatory and investment framework of power interconnection Regulations Investment environment Multi/bilateral dialogue and cooperation towards power interconnection Bilateral cooperation of power trade Multilateral cooperation towards regional power interconnection Global renewable energy trend International level; Corporate and Local level; Conclusion 2

3 Introduction WES AUES South CES EES Source: worldbank.org /2015 data/ Total GDP (current U$D): 11,7 billion Population: 3,120,606 GNP per capita (current U$D): 3870 Surface area: 1,566,000 km 2 (19 th ) Power installed capacity: 1178 MW Energy mix: 89% CHP, 5% Wind& Solar PV s, 4% Diesel, 2% Hydro Energy access to grid: 98% Government: 3 Unitary-Parliamentary republic

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5 Table of Contents Introduction Mongolian energy sector Mongolian regulatory and investment framework of power interconnection Regulations Investment environment Multi/bilateral dialogue and cooperation towards power interconnection Bilateral cooperation of power trade Multilateral cooperation towards regional power interconnection Global renewable energy trend: International level; Corporate and Local level; Conclusion 5

6 Mongolian regulatory framework of power interconnection: Regulations Legal and regulatory environment for Power trade Energy law /2015/: Enables power export and import National Energy Policy Document /2015/: 2 nd Term The stage to export secondary energy and develop sustainably renewable energy sector; Government Action Plan / /: By maintaining local electricity supply-demand sustainably, initiates power export projects to PRC; 6

7 Continue. Ministry of Energy /Central Public Administration/ Carry out and determine necessary strategies and policy to develop Energy export and import policy Energy Regulatory Committee /ERC/ Awarding licenses to power generator, trader and transmitter etc. National Dispatching Centre Dispatch energy flows through out the country Plan and organize Power export and import National and Local Power Transmission company/1+4/: own and maintain 110kV lines 7

8 Mongolian regulatory framework of power interconnection: Investment environment: Concession Law 2010 Investment Law 2013 Establish the framework for granting concessions to private investors to use existing infrastructure facilities owned by the state, and to construct new infrastructure facilities for the purpose of providing services to the general public Protect the legal rights and interests of investors in the territory of Mongolia, to establish a common legislative guarantee for investment, to stabilize the tax environment. Coal Fired TPP s for Export purpose: Shivee Ovoo Thermal Power Plant /TPP/ Tevshiin Goviin TPP and others Renewable energy: Egiin HPP /Government/ Erdeneburen HPP /Government and Private/ Sain Shand wind farm /private/ Tsetsii wind farm /private/ 8

9 Table of Contents Introduction Mongolian energy sector Mongolian regulatory and investment framework of power interconnection Regulations Investment environment Multi/bilateral dialogue and cooperation towards power interconnection Bilateral cooperation of power trade Multilateral cooperation towards regional power interconnection Global renewable energy trend: International level; Corporate and Local level; Conclusion 9

10 Multi/bilateral dialogue and cooperation towards power interconnection Bilateral cooperation of power trade Mongolia is net importer of electricity from 2 neighbours National Dispatching Centre contracts exporting counterparts for national level / 110kV/ Regional power transmission companies makes power import agreement with regional level Year Import /GWh/ Export /GWh/ Average import price $ Amount payed (thousand.$) Source: NDC data Intended Trans-border Power Export projects with China 4800 MW Shivee Ovoo TPP 600 MW Tevshiin Goviin TPP 600 Oyu Tolgoi Copper and Gold mine imports 70% of total electricity import 10

11 Continue. Power Transmission line map of Mongolia RUS RUS PRC PRC PRC PRC Mongolia is interconnected with Russian and China through 220 kv 2 circuit transmission lines and 4 other low voltage transmission lines 11

12 Multi/bilateral dialogue and cooperation towards power interconnection Multilateral cooperation towards regional power interconnection Mongolia aims to be a Power exporter in Long term Actively cooperating with UNESCAP, Energy Charter, ADB, EBRD; Actively cooperating with Northeast Asian Countries, but still we don t have formal discussion mechanism to address Power interconnection; Actively supporting and participating Asian super grid and Gobi Tec initiative; Mongolia is active member of international community: WB, AIIB, ASEM, IRENA, SCO /observer/, APEC /observer/, IGU; 12

13 Northeast Asia Super Grid (Appr km HVDC) Continue Challenges ahead: Strong Inter-Governmental organization is needed: UN, ADB or? Super Nations in The Region: 2 permanent Members of UN Security counsel Government s commitment to support private initiative Feasible Business model (Softbank/Private/ - KEPCO/Public/ - SGCC/Public/ - Ministry of Energy/Public/ + Rosseti /Public/) Source: Pre feasibility study ECS /2014/ 13

14 Table of Contents Introduction Mongolian energy sector Mongolian regulatory and investment framework of power interconnection Regulations Investment environment Multi/bilateral dialogue and cooperation towards power interconnection Bilateral cooperation of power trade Multilateral cooperation towards regional power interconnection Global renewable energy trend: International level; Corporate and Local level; Conclusion 14

15 International power interconnection initiatives Existing Buthan-India-1260MW Bangladesh-India-1000 MW India-Nepal-150 MW Under construction India-Sri-Lanka-1000MW Iran-Pakistan-1000MW Nemo Link- 1000MW Nord Link- 1400MW R&D CASA-1300 MW Iran-Pakistan-1000 MW Turkey-Iran-1200 MW Israel-Cyprus-Greece-2000 MW Tunisia-Italy-2000 MW Portugal-Morocco-1000 MW Regional energy cooperation GMS NORDEL, SAPP, BritNed, Estlink 2, NorNed, Fenno-Skan 2, Skagerak 4 etc.., 15

16 RE100 companies committed to 100% renewable energy 16

17 Private entities leadership /Bigger companies become bigger renewable energy/ Between /19/ companies signed total 7.31 GW renewable energy PPA in USA 17

18 Cities and small communities going renewable Source: UN Dep. Economics and Social Affairs Cities are responsible for 80% GHG emission; 2030: 60% of population in cities; Over 1040 cities over 500,000 population; 18

19 Continue. TOTAL NOMINAL RENEWABLE ENERGY INVESTMENT (Bn$) BY Source: Bloomberg new energy finance 19

20 Table of Contents Introduction Mongolian energy sector Mongolian regulatory framework of power interconnection Regulations Investment environment Multi/bilateral dialogue and cooperation towards power interconnection Bilateral cooperation of power trade Multilateral cooperation towards regional power interconnection Conclusion 20

21 Challenges ahead What should be the Mongolian commitment to develop Energy cooperation with Foreign investors? Government policy and legal environment should be clear and transparent for foreign investors: the track record of the regulating agency; mechanisms in place for tariff adjustments; changes in the law and the financial equilibrium of the concession; changes in the tax system; predictability of policy framework; Particularly Energy sector Coal can be the initial step to develop energy cooperation with Northeast Asian countries for Mongolia. However, until 2030 Mongolia aims to increase its renewable energy share up to 30% compared with 5% in 2015; System efficiency and TSO cooperation; Improvement of legal environment, Renewables certificate; Decentralization of energy sector VS scale of economies; Huge investment is required to execute power interconnection in Northeast Asia. Private institutions 21 should drive the way.

22 Thank you for your attention