Mongolia’s feed-in tariff for the renewable energy power production is primarily regulated by country’s Renewable Energy Law enacted in 2007. The tariff prices are reported in ranges within which power purchase agreements can be negotiated and signed with the National Dispatch Center. Tariffs are outlined in the USD currency however they are paid out in the Mongolian local currency. Feed-in tariffs are granted for a period of 10 years for all technologies.
The feed-in tariff ranges in Mongolia for on-grid installations are as follow:
- Wind: USD 0.08- 0.095/kWh
- Hydropower up to 5 MW: USD 0.045 0.06/ kWh
- Solar PV: USD 0.150.18/kWh
Any price difference of electricity generated by a renewable energy power source, connected to a transmission network, shall be absorbed in selling prices of other generators connected to the transmission network.
The feed-in tariff ranges in Mongolia for off-grid installations are as follow:
- Wind: USD: 0.10-0.15/kWh
- Hydropower smaller than 0.5 MW: 0.08-0.10/kWh
- Hydropower larger than 0.5 MW and with capacity not exceeding 2 MW: 0.05-0.06/kWh
- Hydropower larger than 2 MW and with capacity not exceeding 5 MW: 0.05-0.06/kWh
- Solar PV: USD 0.20-0.30/kWh.
The Energy Regulatory authority has the responsibility to approve and review feed-in tariff ranges as well as review and sign the PPA applications.