MEETING MONGOLIA’S POWER

NEEDS

B. Byambasaikhan

CEO of Newcom

31 Oct 2012

1) MONGOLIA ENERGY NEEDS

1) MONGOLIA ENERGY NEEDS

907 1002 1143

1284

1915

2321

2747

3080

0

500

1000

1500

2000

2500

3000

3500

2011 2012 2013 2014 2015 2020 2025 2030

Mongolia - Energy Demand Forecast (MW)

Total Demand

Current Capacity: Installed Capacity of Power Generation – Total – 1062 MW

• Newcom, GDF Suez, Sojitz Corporation and

POSCO Energy agreed to build-operate-

transfer Combined Heat and Power Plant #5

in Ulaanbaatar

• ADB financed the feasibility study and is the

lead advisor to the Government of Mongolia

Benefits:

2) DEVELOPMENT OF CHP5

1. Reduces pollution - Exceeds emission standards of both Mongolia and the World Bank

2. Efficient plant – 405 MW gross power generation, 587 MW heat and 450 MW electricity generation in

condensing mode

3. Financing from diverse international sources – Letter of support from ADB, EBRD, JBID, KEXIM and KSURE

3) RENEWABLE ENERGY POTENTIAL

Wind: • Mongolia is estimated to have good-to-excellent

wind resources of over 2,550 terawatt-hours per

year.

• The South Gobi region alone is estimated to have

over 300,000 megawatts of wind electric potential.

Solar: • Approximately 70 percent of Mongolia has good

solar resources.

• The good solar resource area has approximately

2,900 - 3,000 sunshine hours per year. A majority

of this solar resource area is the Gobi desert.

Wind + Solar + Hydro + Geothermal = 2.6 TW of potential energy

• Mongolia’s “National Renewable Energy Program (2005-2020)” plans to

increase the percentage of renewable energy in the total energy supply to

20%

• The “Renewable Energy Law of Mongolia,” was approved by the

Parliament in January 2007

• 2010, Parliament adopted Resolution No.72

– improve the financial and economic capacity of energy industries and companies

– to index energy tariffs

– to implement a transition into market based commercial system from 2014

• Approval of Law on Concession in 2010, which opened up

opportunities to implements projects through, for example, Public-

Private-Partnerships

4) MONGOLIA INVESTMENT CLIMATE

First private sector investment in the energy

sector

5) FIRST WIND TURBINE SUCCESSFULLY ERECTED ON 2 OCT 2012

Investment: 120 million USD

Average Wind Speed: 8m/s

Total WTGs: 31

Wind Farm Capacity: 50 МW

Annual electricity generation: 170 M kWh

Connected to the Central Energy Grid System

Largest power plant to be commissioned in

last 30 years

Investors:

Newcom EBRD

General Electric FMO

6) DEVELOPMENT OF SALKHIT WIND FARM

7) ASIA SUPER GRID CONCEPT

Idea behind Asia Super Grid

• The Fukushima nuclear plant incident showed

nuclear power is not cheap nor reliable

• Growing energy demand + reliance on fossil

fuel contribution to climate change

• Mongolia has a vast amount of renewable

energy resources

Way forward

• Private sector led initiative between Newcom

and SB Energy

• Clean Energy Asia LLC established

• Start of 300 MW wind park feasibility study

• This project will make Mongolia the region’s

renewable energy leader

8) OVERVIEW OF NEWCOM GROUP

First mobile telecommunications in Mongolia, which evolved

as a dominant player with currently half the market share

Wholly owned domestic airlines serving more than half of the

domestic market

First independent power producer and wind power generator

First Gobi centered equipment & machinery rental and sales

company

• Established in 1993, Mongolian ownership

• A family with more than 2200 energetic, talented and motivated people

Thank you for your attention

Visit us at www.newcom.mn