Accelerating Mongolia Green Energy Transformation: Digitalization, Decarbonization, and Inclusive Access

Project Summary:

The grant aims to strengthen institutional capacity, modernize grid operations through digitalization and smart technologies, enable large-scale renewable energy integration, decarbonize district heating systems, and expand digital connectivity to rural and underserved communities alongside power infrastructure.

The grant will support the adoption of digitalization roadmaps and financial recovery plans for Mongolia's energy sector, and build institutional capacity at the National Dispatching Center and Energy Regulatory Commission through Korean expert knowledge transfer.

It is organized across three activity areas:

• Smart grid and digitalization work, including a smart grid readiness assessment, a fiber optic connectivity gap analysis, capacity building in partnership with Korea Power Exchange (KPX), and a pilot installation of data acquisition systems (RTU for SCADA).
• Greening the Power Grid and Heating Network will provide strategic support for independent power producers and public-private partnerships, including a 100 MW wind project, and develops decarbonization pathways for district heating.
•  Inclusive Energy Services for Access and Equity focuses on distributed renewable energy solutions for remote areas and clean heating options for decentralized systems.

This grant is aligned as follows:

• The work will directly inform the design of the Fifth Energy Sector Project (ESP5: P512300) and complement ongoing World Bank investments in generation, transmission, distribution and heating systems.