SOUTHERN REGION OF MONGOLIA POWER HOUSE OF RENEWABLE ENERGY

D. Gankhuyag,

CEO of Clean Energy Asia LLC

June, 2015

Section 1: Renewable Energy Potential in Mongolia

Section 2: South Gobi Renewables Projects

Section 3: Asian Super Grid

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Section 1: Renewable Energy Potential in Mongolia

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Mongolian Energy Sector

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Type of PP Generation, Mln.kWh

Percentage

CHP 5191.3 96.3%

Diesel 8.2 0.2%

Hydro 66.3 1.2%

Wind and Solar 126 2.3%

Total 5392 100%

Installed Capacity of Power

Generation,

Total 1178 MW

5% 2% 4%

CHP

Wind&Solar

Hydro

Diesel

Source: National Statistical Committee

Electricity Forecasts

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*The following forecast for whole of Mongolia and includes Oyu Tolgoi and Tavan Tolgoi as loads as well as other known spot loads.

Source: ADB, Development Plan, 2013

Electricity Demand Forecast (MW)

Renewable Energy Policy

National renewable energy program In 2005, approved by the Parliament

Target:

- To increase the share of renewable energy in

the total supply to 20-25% by 2020;

Renewable energy law In January 2007, approved by the Parliament

Feed-in tariff (FIT) for renewable power sources

In 2005 State policy on energy sector submitted to the Parliament

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Mongolian Renewable Energy Potential

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Wind resource * Solar resource *

China 2380GW(on land)*** installed 114GW**

Mongolia 1130GW*** installed 50MW

320 sunny day**

Mongolia 4774 TWh

* http://globalatlas.irena.org/ ** Wikipedia, *** NREL

China 3826TWh

Mongolia 946TWh

Japan 34TWh

Mongolia 4774TWh

South Korea 309TWh

Japan 809TWh China 27374TWh*

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Gobi Wind

energy resource

946TWh/a

Gobi Solar

energy resource

4777TWh/a

World electricity

production in 2012

22668TWh*

China electricity

Production in 2012

4985TWh*

Electricity generation of

Mongolia in 2014

5.6 TWh*

96%

21% 4%

19%

Mongolian Renewable Energy Potential

* Key World Energy statistics 2014 by IEA

Renewable Energy in the Gobi Desert

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Tremendous Wind Potential

400,000 km2 suitable land for wind and solar projects in Mongolia

Excellent wind and solar resources with high efficiencies

Low GDP per capita but rapidly expanding economy

Neighboring countries with massive electricity consumption

Vast land, low population density 1.7 people per km2

Flat land cover Low construction cost

Low average temperature High efficiency for PV

Section 2: South Gobi Renewables Projects

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SoftBank Corp is a Japanese telecommunications and Internet corporation, with operations in broadband, fixed-line

telecommunications, e-commerce, Internet, broad media, technology

services, finance, media and marketing, and other businesses.

Newcom was established in 1993 as one of the early private enterprises following the Mongolia's transition to democracy and a market-led

economy.

Newcom Group has led the successful completion of the first wind farm in Mongolia Salkhit Wind Farm (50MW).

Clean Energy Asia LLC (CEA) was established in 2012 as a joint venture between Newcom LLC and the Japanese telecommunications giant

Softbanks renewable energy arm, SB Energy Corp.

Brief Introduction of Company

Tsetsii 50MW Wind Farm project

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6.0

7.0

8.0

9.0

10.0

1 2 3 4 5 6 7 8 9 10 11 12

Win

d s

peed

Month

Average wind speed /monthly/

S-9001

S-9002

S-9003

Supported by the Government of Japan and Mongolia

Experienced developer (Newcom developed Mongolias first wind farm Salkhit 50MW with EBRD, FMO and GE)

Suitable landscape and location

Potential expansion up to 250MW depending on increase of demand

Advantages Where we stand

First Wind Farm in the South Gobi

PPA 25 years

Tariff @9.4 cent/kWh 20 years

Operation start: 2017

Total capacity of Wind Farm: 50MW

Annual Energy Production: 174m kWh

Estimated average wind speed is 8.4 m/s at 80 meter

Obtained all required approvals and signed relevant agreements

Advantages to the Grid

Reduce the volume of imported electricity (2014) 1,400 mln kWh reduce by 13% /174 mln kWh/

Reduce the line losses of long distance transmission Transmission line losses between Ulaanbaatar and Tavan Tolgoi

mine (729 km 220 V transmission line) is measured at 5.4% By completing Tsetsii Wind Farm, the transmission line losses will be

reduced by 8.1 mln kWh

Absorb reactive power of the grid (quality of electricity will increase)

Stabilize the voltage drop

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Khurmen Site**

161,000ha

Up to 5GW

Bulgan Site

46,000ha

Up to 1.5GW

Tsetsii Site

7,290ha

Up to 250MW

Khankhongor Site

10,000ha

Ulaanbaatar

Tavan Tolgoi

Coal Mine Oyu Tolgoi

Copper Mine

Started Wind

masts

Solar

masts

Average wind speed

50m m/s

Tsetsii 2008 3 1 7.6 excellent

Khurmen 2010 5 3 6.4 good

Bulgan 2010 4 1 7.5 excellent

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Our Projects in the Gobi

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Section 3: Asian Super Grid

Why Need Electricity Market Reform?

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Negative aspects of regional monopoly system were revealed after March 2011

Lack of system to transmit electricity beyond regions

Little competition and strong price control

Limit in handling the change in energy mix including increase in

renewables

Source: METI

HVDC Network Linking Asia

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Key Message

Asian Super Grid (ASG) planned to use power corridors: connecting Russia, Mongolia, China, South Korea and Japan

Interconnection target Aims to interconnect strategic countries in Northeast Asia (NEA) with

electricity generation areas in the Gobi Desert.

Technologies and cost implications The objective is to connect Irkutsk in the North, Shanghai and Seoul in

the South and Tokyo in the East of the ASG region with high voltage direct current (HVDC) transmission lines.

Benefits of regional integration Will deliver a number of economic, social and environmental benefits to

Mongolia and to the other participating countries.

18 Source: Gobitec and Asian Super Grid for Renewable Energies in Northeast Asia | 2014

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The overall potential of solar and wind energy in the

Gobi Desert is about 2,600 TW.

Potential

Source: Gobitec and Asian Super Grid for Renewable Energies in Northeast Asia | 2014

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Exporter of Renewable Energy

Ambition Target

Thank You for Your Attention