Mongolia is advancing its energy diversification strategy with the launch of an auction that includes the construction of 110 MW of photovoltaic solar energy and 52 MW/188 MWh of BESS systems.
The initiative, promoted by the Ministry of Energy and technically supported by the Asian Development Bank (ADB) , will be developed under the Independent Power Producer (IPP) scheme and includes five sites distributed between the western and eastern regions of the country.
The process is currently in a market interest assessment phase, while the formal tender is planned for the second half of 2026.
Five projects to strengthen the network
The proposal includes solar power plants accompanied by storage systems and the necessary infrastructure for their connection to the national electricity system.
In the western region, three projects will be developed totaling 70 MW of photovoltaic capacity and 40 MW/140 MWh of storage:
- Bayankhongor: 10 MW solar and 10 MW/20 MWh of batteries.
- Bayan-Ulgii: 20 MW solar and 10 MW/40 MWh of storage.
- UVs: 40 MW solar and 20 MW/80 MWh from BESS.
For its part, the eastern region will incorporate two initiatives totaling 40 MW of solar generation and 12 MW/48 MWh of storage.
One of the projects will be connected to the Barun-Urt grid with a capacity of 10 MW solar and 2 MW/8 MWh of batteries, while the province of Dornod will host a 30 MW photovoltaic installation alongside a 10 MW/40 MWh system.
The IPP model is gaining ground
The selected private developers will assume full responsibility for the projects, including design, financing, construction, operation and maintenance of the facilities.
The Ministry of Energy indicated that the land for all sites has already been secured and that the corresponding usage rights will be transferred to the successful bidders.
The chosen structure seeks to facilitate private sector participation and accelerate the deployment of new energy infrastructure in a country where modernizing the electricity system has become a strategic priority.
Multilateral support and call to investors
The call for proposals is supported by the Asian Development Bank, which provides transactional advice under the framework of Mongolia's Renewable Energy Law.
Currently, the authorities are receiving non-binding expressions of interest from companies and consortia with experience in IPP projects, engineering, procurement and construction (EPC), photovoltaic generation and energy storage.
The deadline for receiving preliminary proposals is August 16, 2026.
Subsequently, the Government will decide whether to proceed with a single tender for all five sites or divide the process into different project packages.
A sign of the new renewable model
Beyond the volumes involved, the initiative reflects an increasingly visible trend in emerging markets: new renewable developments are beginning to incorporate storage from their initial design.
The combination of solar energy and batteries allows for better management of generation variability, optimization of the use of electrical infrastructure, and greater reliability to the system.
In this context, Mongolia seeks to position itself within a new generation of hybrid projects that are already setting the course for renewable investments in Asia and other developing markets.