Household stoves (216,807) and 3200 Heat Only Boilers (HOB) in ger districts of Ulaanbaatar city account for 80% of air pollution; over 400,000 vehicles account for 10%; 5-6% by combined heat and power (CHP) and 4% by ash ponds and dusty ground base as of 2015 reported by the GoM. Total coal consumption for cooking and heating is approximately 2.84M tons per year in Mongolia, where HOBs contribute 2.0M tons (as of 2015). This represents almost 20% of the country’s coal consumption.

The GoM aims to increase the share of renewable energy in total capacity of energy production by 20% by 2020 and 30% by 2030. However, due to a number of economic, policy and technical barriers, the use of the renewable energy for heating is still immature in the country.

Findings and recommendations from the business case study carried out by GGGI at the 122nd Public School in Songinokhairkhan district demonstrated that replacing current coal-fired HOBs with a blend of renewable and non-renewable sources is technically viable and needs to be financially encouraged. Using ground source heat pumps in combination with electric boilers can be technically reliable and if total lifecycle costs of the investment are considered, financially viable, taking into consideration current heating subsides provided by the government to off-grid public buildings. The project objective is to raise finance for a pilot RE project for school #122 and develop a investment barrier analysis for scaling-up the use of low carbon technologies in replacing coal-operated heat only boilers. This project is aligned with IO2. Increased green growth investment flows which enable partner governments to implement green growth policies.

Impact: Air pollution and GHG emissions from HoBs reduced

Outcome:  Raise finance for a pilot RE project for school #122 and develop a barrier analysis  for investment in low carbon technologies in replacing coal-operated heat only boilers.

Project Outputs completed in 2020:

i. Green Investments: 

• A tool for assessing costs and benefits of clean technologies to help MET assess the benefits of new technologies piloted.

ii. Capacity Building and Knowledge Products:  

• Total of 1 capacity building activity in the form of National forum co-organized with MET and UNICEF.