During the fourth Eastern Economic Forum in Vladivostok, Russia last month, Mongolian President Khaltmaagiin Battulga pushed plans for a super grid that would enable Northeast Asian countries to share energy.

Battulga proposed a prompt and urgent start to building the Northeast Asian Super Grid project, "which can share the load during peak hours and be a resource-efficient and optimal solution for supplying Northeast Asian countries with energy," according to Mongolia's state-owned news agency Montsame.

The grid, initially proposed by SoftBank CEO Masayoshi Son, would use Mongolia's abundant wind and solar resources to generate electricity that will be delivered to other economies in Northeast Asia via high-voltage direct current transmission lines.

Mongolia has in recent years vigorously promoted the development of wind and solar power, and it has given priority to renewables in its energy development. The country enacted the Renewable Energy Law in 2007, which spells out the rights and obligations of government institutions as to the use of renewable energy, institutes a renewable energy licensing regime, and sets standards for electricity rates, among other steps.

Mongolia's development and use of renewable energy is closely linked to its national energy security, and it is important to the country's sustainable development.

If the Mongolian president's proposal for a super grid becomes reality, it will boost the country's renewable energy development. But transmission facilities are still at the planning stage in Mongolia.

Several factors are affecting the outlook for the project.

First, Mongolia faces a power shortage as the country has yet to achieve self-sufficiency in power supply, especially considering its fast-growing, electricity-intensive mining sector. Mongolia imported about 20 percent of its electricity demand from its neighboring countries in 2017.

Second, aging electrical equipment and large-scale power losses during transmission cast doubt on the concept of exporting Mongolia's power.

Third, there has yet to be a feasibility study of the super grid project that involves related parties. There still needs to be increased political mutual trust among Northeast Asian countries. The problems surrounding the framework for transnational power transmission, as well as laws, rules and technology, must be solved.

Further, Mongolia hasn't established a mechanism that would guarantee renewable energy's role in power generation. Its own use of renewable energy resources is still insufficient, and it relies primarily on coal-fired electricity generation. Renewables only accounted for 4.2 percent of the total electricity generated in Mongolia in 2016, which is not high enough to allow for large-scale power distribution.

Finally, the country lacks the money to fund the long-term development of renewable energy. Its major renewable energy projects generally rely on foreign institutions or banks to offer loans or aid, and the country is also short of relevant technologies and talent.

Particularly noteworthy was the Mongolian president's announcement during the Eastern Economic Forum about a joint project with China for an energy complex and high-voltage transmission line.

A feasibility study for the complex has been finished and construction will start shortly. If all goes as planned, Mongolia will be able to export electricity and there will be closer energy cooperation with China.

China needs to seize the opportunities presented by Mongolia's push for renewable energy resources. As China shares a border with the southern part of Mongolia, which abounds in wind and solar power, China might join Mongolia in joint exploration of renewables, offer loans to Mongolia and consider a concrete cooperation road map, thus playing a part in the creation of the Northeast Asian Super Grid.

Published Date:2018-10-15