Household stoves (216,807) and 3200 Heat Only Boilers (HOB) in ger districts account for 80% of air pollution, and over 400,000 vehicles for remaining 10%. Total coal consumption used for cooking and heating purposes of the country is approximately 2.84M tons emitting approximately 3.8 tons of Carbon Dioxides, where HOBs contribute to 2.0M tons (as of 2015). This represents almost 20% of the country’s coal consumption. 

The GoM is aiming to increase the share of renewable energy in total capacity of energy production by 20% by 2020 and 30% by 2030. However, due to weak economic capacity, and lack of strong technical knowledge, 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. 

Energy efficiency in buildings and the built environment is another important component of the project. GGGI will be focusing on bring value add by developing Building Energy Efficiency Roadmap to accelerate implementation of the country’s 2030 agenda. Together with adoption of standards and labelling regulation for electrical appliances, the energy efficiency in buildings and in electrical appliances are expected to attract more green growth projects in the sector. 

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 2019:

i. Green Growth Policies:

• Policy Assignment: Barrier analysis for investment in low carbon decentralized heating technologies was delivered.

ii. Green Investments: 

• Advisory outputs for inform investment proposals: advisory outputs for inform NFVs, bankable projects or investment proposals. 
• Green investments catalyzed: The Ministry of Environment and Tourism allocated 720 million MNT (USD 260,000) from the State budget to air pollution reduction to finance the replacement of one boiler with a ground source heat pump. 

iii. Capacity Building and Knowledge Products:  

• Total of 1 capacity building activity in the form of workshop with MET. 
• Total of 1 knowledge product produced, a short video on Residential Retrofitting project to raise awareness about building energy loss and efficiency for households.

Project Manager: Munkhbat Duusuren 

Batzaya Bayasgalan, Bayarmaa Enkhbayar, Oyunchimeg Amaruvshin, Tsolmon Namkhainyam, Mahfuzur Rahman