Improving the security and reliability of energy supply for Mongolia

Abstract

For many countries, the energy sector is the most dynamic and important economic sector. Developing countries with fossil fuel reserves wish to use these sources for their own development or as source of revenue for future prosperity. In Mongolia coal-fired power plants provide the majority of the power generated. There are seven main coal-fired power plants in Mongolia with a total installed capacity of 951.5 MW. These produce combined heat and power, electricity and heat at the same time. Therefore, Mongolian government should provide a high security level for the combined heat and power plant`s production. The purpose of this thesis is to show to government and policymakers, how to improve the security of the energy supply based on the empirical analysis results of the energy sector. Moreover, to derive fuel mix for energy supply with the resources available whilst considering seasonable price, energy security and climate change mitigations as the target of energy policy. According to the objective of the Energy Security Price Index (ESPI), based on the measure of market concentration in the fossil fuel market and political risk of exporting countries, the imported oil products and electricity are chosen to assess the level of energy security. Keywords: Energy security, power plant, electricity demand, mining