TA 5972-REG: Promotion of Renewable Energy, Energy Efficiency and Greenhouse Gas Abatement PREGA Sub regional Workshop 19 22 September

r 2005 Beijing, Peoples Republic of China

WIND FARM IN GOBI REGION OF MONGOLIA

NTEs

Project Pre-feasibility Study

GRID CONNECTED UTILITY SCALE WIND FARM IN GOBI REGION OF MONGOLIA

GEOTHERMAL HEAT SUPPLY FOR PROVINCE CENTER OF MONGOLIA

Policy support
Government of Mongolia approved program Integrated Energy System in 2002. Will carry out study and build Wind Farm in the Gobi region. Build a Wind Farm in Central region and connect to CES (nearest around Ulaanbaatar).
In June 2005 GOM approved National Renewable Energy Program

Wind farm project

- Location: Southern Mongolia, Manlai soum Umnugovi province - Meet growing energy demand - Reduce electricity import from Russia - Contribute air pollution reduction in Ulaanbaatar - RE development in Mongolia

Power demand
Big deposit copper and gold in Oyutolgoiestimated energy demand 170MW/h Tavantolgoi coal mine Tsagaan Suvarga copper mine South Electricity Grid (main line 220kV) Total about 300MW/h

Wind resource
annual wind speed of 6.4-7.1 m/s annual mean wind power density of 300-400 W/m2 at 30 m height level Wind resource is quite well, more than 10% of the total territory has been estimated for utility scale wind power application and its 1.1 million MW of installed capacity, and deliver over 2.5 trillion kWhs electric energy per year

The proposed wind farm

Impacts
Positive impact: - Avoidance of air pollution - Human health and welfare - Poverty reduction Negative impact: - Bird killing - Noise - Visual impact - Telecommunication interference

Wind Farm Capacity

Possible power up to 100MW Planned capacity 40MW - Transportation - Installation - Grid voltage stability

Technical options
Candidate turbine range 500-1000kW 47 wind generators with unit capacity 850 KW will be installed (Vestas). Turbine must 49m 850kW turbine will produce 2.4GWh/year Capacity factor 32.2% Annual production about 100GWh/year

Technology Transfer
Mongolia does not have experience on application utility scale wind farms. The first Mongolian wind farm will bring followings:
The projects success would certainly promote other wind power projects in Mongolia, especially in the Gobi and Steppe region. Due to technology transfer from the wind energy project, participation by local experts would increase skills and new technology study. National production of some equipment needed and can be foreseen for wind projects. Employing local people, who will learn modern technology during project implementation

Project Baseline and GHG Abatement Calculation

Baseline Project Selection As part of the energy sector restructure and development plan the Government of Mongolia planning to built/or expand existing power plant. Developing wind farm in Mongolia could be one possibility to replace some capacity of coal powered plants. Therefore it is reasonable to choose 40 MW coal powered plant as the baseline of this project.

Project Baseline and GHG Abatement Calculation

Calculation of total project GHG reduction Electricity generated by the turbine will offset that generated from conventional sources and carbon dioxide emissions associated with conventional generation will be reduced as a result. The total annual GHG emission reduction of Manlai soum center 40 MW wind farm is estimated as 97103 tones of CO2e.

Investment
Feasibility study Development Equipment Foundation and construction Grid connection Civil and Engineering Roads and land Others Total (US$) 245,200 835,500 47,143,350 4,471,000 1,397,000 610,500 2,154,500 2,303,950 59,160,808

Financial analysis
Financing sources Life time 25 years The IRR is 2.6% without considering CERs, 4.9% with CERs. Investment payback period 12 years. GHG reduction 97 thousands tons of CO2 per year. GHG reduction cost is 5 US$/tCO2

Barriers
Policy support (RE law) Finance Public awareness Capacity building Lower tariffs

CONSLUSION
abundance potential for wind farm

Contribute for future energy needs in southern area

Constitute investment opportunities Strengthening capacity building High cost of electricity from wind generation Particularly reduction GHG emission

Impulse to RE development

Thanks your attention