Update on the Progress of the ‘Energy Sector Development and Reform in Mongolia’ Technical Assistance Project

Within the framework of cooperation between the Ministry of Energy and the Asian Development Bank, a workshop discussion was held on September 16, 2025, to review the interim report of the technical assessment study “Energy Sector Development and Reform in Mongolia.”

The discussion was attended by energy sector experts, project consultant from Georgia, and coordinators from the Asian Development Bank, Member of Parliament Ms. M. Enkhtsetseg, as well as representatives from the Ministry of Energy, Erchist Mongolia LLC, the Energy Regulatory Commission, the National Dispatching Center SOE, the National Power Transmission Grid SOE, and the Ulaanbaatar Electricity Distribution Network SOE.

The Ministry of Energy of Mongolia, in partnership with the Asian Development Bank (ADB), has initiated a project comprising seven key components. During discussions, stakeholders explored Mongolia-specific options for the electricity market model, production cost model, tariff calculation framework, regulatory approaches, and the digitalization of transmission and distribution networks. The parties exchanged insights and shared perspectives on these important issues.

The project “Development and Reform of Mongolia’s Energy System,” implemented with the support of international experts, aims to create solutions to enhance the operations of Mongolia’s electricity market as well as its transmission and distribution processes. A report prepared under the project highlights the challenges to achieving a competitive, transparent, and efficient electricity market in line with international best practices, while proposing phased market liberalization and upgrades to digital infrastructure.