Energy

Outdated power plants and grids, alongside a legal environment and tariff regime in need of upgrading, has made investment difficult. However, several efforts, focusing on boosting and diversifying supply for electricity and fuels, and establishing a positive track record for Mongolia as a viable destination for private investment in large-scale energy projects, are under way. The good news is that Mongolia does not lack domestic sources of energy. Coal is plentiful and supply is available to meet the needs of electricity production. The country’s first wind farm is due to begin feeding into the central grid in early 2013 and solar power is already leveraged on a small scale. While most energy is still produced by burning coal, growing energy needs could be met by a more diverse mix, including the possibility of hydrocarbons and nuclear energy. The government appears intent on opening electricity generation to private investment. This chapter contains interviews with M. Sonompil, Minister of Energy, and Willem Van Twembeke, CEO and President, GDF SUEZ Energy Asia.