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: 1- 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. 2- 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. 3- The tariff/price 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.