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Mongolia Electric Power Transmission & Distribution (T&D) Infrastructure Industry Analysis
The Electric Power Transmission & Distribution Infrastructure industry in Mongolia is an important sector that plays a crucial role in the country's economic development. The industry is responsible for delivering electricity to businesses, households, and other facilities throughout the country. It is a key enabler for economic growth and development, supporting industries such as mining, construction, and manufacturing.
Current Scenario:
The power sector in Mongolia is dominated by coal-based power generation, which accounts for more than 90% of the total installed capacity. The country has a total installed capacity of around 1,370 MW, with the majority of the capacity located in the central region of the country. The transmission and distribution network is operated by the state-owned company, the National Electric Transmission Grid LLC (NETG).
However, the country is also investing in renewable energy sources such as wind and solar power. The government aims to increase the share of renewable energy in the country's total energy mix to 20% by 2023. This presents a significant opportunity for the industry as new transmission and distribution infrastructure will be required to accommodate these new sources of energy.
Construction of new projects:
Mongolia has several upcoming transmission and distribution projects in the pipeline. In 2020, the World Bank approved a $50 million loan to upgrade the country's transmission network, which will improve the reliability and efficiency of the electricity supply. The project includes the construction of new transmission lines and the upgrading of existing substations.
The country is also developing new renewable energy projects such as the Tsetsii Wind Farm, which is expected to generate 50 MW of electricity when completed. The wind farm will be connected to the grid through a new transmission line, which is currently under construction.
Major drivers:
The major drivers for the Electric Power Transmission & Distribution Infrastructure industry in Mongolia are:
Economic growth and development: As the country continues to develop, there is a growing demand for electricity. The industry will need to invest in new transmission and distribution infrastructure to meet this demand.
Expansion of renewable energy sources: The government's push towards renewable energy sources presents a significant opportunity for the industry as new infrastructure will be required to accommodate these sources.
Investment in infrastructure: The government's commitment to investing in infrastructure, including transmission and distribution networks, is a major driver for the industry. This investment will improve the reliability and efficiency of the electricity supply, supporting economic growth and development.
Industry outlook:
The outlook for the Electric Power Transmission & Distribution Infrastructure industry in Mongolia is positive. The industry is expected to continue to grow as the country develops and the demand for electricity increases. The government's commitment to renewable energy sources and infrastructure investment will support the growth of the industry.
However, the industry also faces challenges such as the need to modernize the existing transmission and distribution network and the high costs of developing new infrastructure in remote areas. The industry will need to address these challenges to ensure the reliable and efficient supply of electricity to support economic growth and development.
Overall, the Electric Power Transmission & Distribution Infrastructure industry in Mongolia presents significant opportunities for growth and development. The industry will need to continue to invest in new infrastructure to support economic growth and meet the growing demand for electricity.
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