MONGOLIA ENERGY SECTOR: DEVELOPING FRAMEWORK FOR ENERGY COOPERATION

Transcription

1 Expert Workshop for Towards Multilateral Energy Cooperation in North East Asia, Seoul, Korea, September 5-6, 2003 Panelist: Mr.Tumentsogt Tsevegmid (MSc, MPA) Ministry of Infrastructure, Mongolia

2 Overview of Energy Sector in Mongolia Current Policy Challenges Prospects for Multilateral Energy Cooperation in North East Asia for Mongolia, Necessary Institutional Framework Conclusion

3 Overview of Energy Sector in Mongolia Energy Supply and Demand Coal Petroleum, petroleum products Oil production and exports Petroleum potential in Mongolia Government policy in petroleum sector Petroleum products Liquified Flammable Gas

4 Energy Supply and Demand Other Energy Sources Hydropower Solar Wind Geothermal Electricity Heat

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6 Current Policy Challenges The main objective in energy sector of Mongolia is to create a financially sustainable energy sector that will provide cost-effective energy access, thereby enabling poverty reduction and greater private sector and civil society participation. Mongolia s energy sector should be developed within a regional energy context, while at the same time taking advantage of new technologies and sources of energy that might further promote economic efficiency and environmental sustainability.

7 Recent Government Actions Undertaken in Energy Sector Energy Law adopted in 2001 Current Status of Restructuring Unbundling Corporatization Commercialization Privatization Independent Regulatory Body Main Result - Separation of Policy Implementation from Regulation, Regulation from Ownership

8 Creation of Independent Regulatory Body Energy Regulatory Authority (ERA) Licensing Tariff setting Consumer Right Protection Monitoring Main Result - Efficient Operators Could Enter the Market

9 Mongolia Integrated Power System (MIPS) to develop reliable and affordable energy supply to contribute to regional development to improve energy security

10 The Government Resolution #140 approved the Mongolia Sustainable Energy Sector Development Strategy Plan ( ) Main principles: Financial sustainability Restructuring Capacity building Energy access and affordability Energy conservation

11 Prospects for Multilateral Energy Cooperation in North East Asia for Mongolia, Necessary Institutional Framework Energy Export from Russia to China Through Mongolia Natural Gas Pipeline Crude Oil Pipeline Electricity Transit

12 Investment Opportunities in Energy Sector National Investment Policies Investment Projects Privatization of State Assets in Energy Sector

13 Priority Areas for Direct Investment in Energy Sector Oil and gas production, and the provision of water supply; Electricity generation, transmission, and distribution, including hydro power plants, electricity network, thermal and diesel generating stations; Steam production and hot water supply including heat lines and distribution network; Water filtration and water pipeline; Petroleum and gas transmission pipeline construction; Renewable energy technologies; Energy conservation and energy efficiency technologies.

14 Conclusion Mongolia gives an exceptional importance to the regional energy cooperation and development. Due to its landlocked and remote location, the Government of Mongolia was always very supportive for different options of transit of oil, gas and electricity. In order to actively participate and contribute to multilateral energy cooperation in North East Asia, Mongolia is working to develop necessary institutional framework for investment promotion and protection, for development of free trade and fair trade between countries in the region, for promotion of policies aimed to improve environmental protection and development of clean technologies etc.

15 THANK YOU