The U.S. government, through the United States Agency for International Development (USAID), launched the five-year, USD 12-million Mongolia Energy Governance activity that will provide access to reliable electricity and facilitate sustainable and inclusive economic growth.

Through the project, USAID will work with key government and private sector partners to improve planning and operational performance, guide planning for new infrastructure, enable greater market competitiveness and incentivize private investment through clear and transparent rules, and support increased adoption of modern clean energy technologies.

Mongolia currently depends on imports from neighboring countries to supply approximately 20 percent of its electricity.  A more competitive and financially sustainable energy sector will increase Mongolia’s economic competitiveness and create a more secure domestic energy supply.  The project will help develop a more sustainable and self-reliant energy sector that will reduce fiscal pressures on the government.

USAID will also advance the use of clean alternatives to modernize the country’s energy sector to help improve air quality.  Currently, the capital city of Ulaanbaatar suffers from poor air quality due to reliance on coal-fired power generation, coupled with the burning of raw coal in the city’s growing peri-urban ger districts. The activity will contribute to USAID’s Climate Change Strategy, which was launched on April 22, Earth Day.  Abt Associates is USAID’s implementing partner for this activity.