• Develop enabling regulations for renewable technologies in the Mongolian context. • Set ambitious, specific targets for coal phase-out to meet the 2050 vision. • Assess renewable potential (e.g., geothermal potential). Energy efficiency in buildings • Provide heating installations with energy meters and heat cost allocators. • Implement measuring instruments to assess the development of heat demand in buildings. • Improve thermal insulation in buildings. • Revise construction standards for new building regulations regarding energy efficiency measures. • Introduce energy performance certificates for new and renovated buildings. District heating • Introduce RE solutions (including thermal storage) that supply domestic hot water. • Create DH investment plans supported by regulation to upgrade, increase capacity, and maintain DH systems. • Structure heating tariffs to be composed of both fixed and variable costs. • Create DH cost-covering systems by revising heating tariffs and ownership models. Ger areas • Investigate heat pump potential for buildings in Ger areas. • Assess the electrification of the heating supply in Ger tents and plan alongside electricity distribution grid reinforcements. • Improve insulation capacity in Ger tents where possible.
Recommendations for implementation of renewable energy in district heating systems One of the significant challenges to implementing the green transition in Mongolia’s heating sector is the low price of coal, which hinders the financial feasibility of RE options. One way to solve this is by including externalities such as air pollution and the emission of GHGs in the heat tariff in the form of taxa- tion. The increasing population is leading to a rapid increase in heat demand, which adds pressure to build more heat supply plants. Here, it is important to ensure that new buildings are energy efficient, for example, through building regulation measures. Low heating tariffs are a major barrier hindering the imple- mentation of energy efficiency measures in existing buildings since the cost of building renovation may not be recovered through the associated energy savings. This could be solved by introducing an appropriate tariff scheme based on con- sumption billing that reflects the heat production cost. Today, buildings do not use heat metering to measure their heat con- sumption and billing. Regarding new renewable sources, further investigation into geothermal and excess heat sources would be worthwhile for the DH sector, as there are limited detailed surveys on the po- tential of these sources. Recommended measures that could be implemented to pro- mote RE deployment in Mongolia’s heating systems under four categories are shown below: General • Target increased investment in RE development and the decarbonization of the heating sector.
Figure 5: System costs related to the investment and operation of the assessed cases by categories.
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