Energy Efficiency and Demand Side Management

Energy efficiency and demand management have great potential to conserve and manage energy resources. Historically, the country has been focused on the supply side, looking for additional supply resources to meet growing demand. Below cost-of-service tariffs, lack of consumption metering and billing, and a weak institutional structure have all inhibited the adoption of energy efficiency and demand management measures. The MEG Activity aims to raise understanding of potential measures in this area and promote the conventional thinking to more demand management rather than supply side. This will be accomplished by:

• Using the Energize Mongolia Campaign as a medium to reach consumers and explain their role as users of energy, i.e. ‘consumers control the demand’. We aim to change behavior such that conservation and efficiency are a routine way of life for energy consumers.

• Strengthen appropriate Government policy, laws, rules, and regulations to support adoption of energy efficiency and demand management programs.

• Support the Energy Regulatory Commission in promulgating rules and regulations that provide incentive mechanisms for consumers, and full cost recovery for distribution companies.

• Engage with the private sector to promote the supply and distribution of energy efficiency equipment, appliances, control systems, and other advanced energy saving technologies.

• Enhance the power system planning process, via an integrated resource and resilience plan, that quantifies demand management as a cost-effective alternative to increasing supply options, and

• Conduct training, capacity building, and study tours for decision makers and prime stakeholders to incentivize and motivate a more demand driven decision making process.

• Energy efficiency and demand management are a win-win approach to managing the Country’s energy consumption and thus the supply requirements. The MEG Activity plans to make a significant impact in this most critical area.