Policy status:In Force
Date Effective:2007
Date Amended:


Policy Type:Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums, Policy Support, Policy Support>Institutional creation
Policy Target:Multiple RE Sources
Policy Sector:Electricity, Heating and Cooling
Size of Plant Targeted:Small and Large
Agency:Ministry of Energy

The Renewable Energy Law was enacted by the Parliament on January 11, 2007. It aims to increase the utilization of renewable energy in Mongolia and to regulate the generation and the supply of renewable energy.

The important provisions of this law define:

  • The RE-related powers and responsibilities of various state authorities such as the Parliament, the Government of Mongolia, the State Administrative Authority and the Governors of Aimags (a first-level administrative sub-division) and the Capital city.
  • The licensing procedures and the rights and duties of the distribution/transmission companies and the producers of renewable electricity and heat. It also defines the characteristics of the power purchase agreement between the producers and the transmission companies. 
  • The feed-in tariff range for wind, hydro (depending on capacity) and solar electricity generation by grid-connected and independent power generators. It also identifies the responsible authorities and defines the principles for tariff setting. Prices and tariffs of shall be stable for a period of minimum 10 years starting with the date of enforcement of the law. The producers shall be compensated for the difference between the production cost and the tariff through a Renewable Energy Fund. This fund shall be regulated by the law of Special Purpose Fund of Government.

In June 2015 the Renewable Energy Law of Mongolia was updated. The purpose of the amendment was to enhance financial situation of single buyer model of the power sector and ensure feed-in tariffs in the Law on Renewable Energy.

The amendment introduced a new term: “Encouraging Tariff” referring to the gap between the feed-in tariff levels and the final tariff paid by the consumer. Regulations related to the PPAs were also updated. 

Related policies:Mongolia renewable energy feed-in tariff

Last modified: Wed, 09 May 2018 15:30:06 CEST