Year:2001 (April 15th)
Policy status:Ended
Date Effective:2001 (April 15th)
Date Amended:







Policy Type:Policy Support, Regulatory Instruments
Policy Target:Multiple RE Sources
Policy Sector:Framework Policy
Size of Plant Targeted:Small and Large
Agency:Ministry of Energy

The Law on Energy was enacted by the Parliament of Mongolia on February 1, 2001 and went into force on April 15, 2001. The purpose of this law is to regulate matters relating to energy generation, transmission, distribution, dispatching and supply activities, construction of energy facilities and energy consumption. The law is based on economic principles, market mechanisms and the rights and obligations of both the industry and the consumers.  This law fundamentally changes the operations and regulations of the energy sector.  On the structural side of the sector, the law is based on the unbundling of the Mongolian energy industry, thus creating generation, transmission, dispatch, distribution and supply entities. On the regulatory side, this unbundling is supported by the provision that each of these new entities will have to apply for licenses for operation, and separately for electricity and district heating.  The Law calls for the establishment of an Energy Regulatory Agency (ERA) that will be responsible for administering its provisions.


The amendment to the Law on Energy adds a new regulation that sets energy prices and tariffs which account for power production costs and profit margins. The price and tariffs for electricity and heating production, and the amount of fuel supplied (for generation of heat and electricity) will be regulated in long run.
The amendment aims to increase private sector participation, business development and investments in the energy sector. The increased business interest and participation of private sector will result in the increased development of the energy sector.

Related policies:National Renewable Energy Programme (2005-2020)

year effective: 2001 (Feb. 1st)

Last modified: Mon, 30 Oct 2017 12:35:31 CET