Choosing Renewable Energy for an Industrial Park in Nalaikh, Mongolia
This case study highlights the lessons learned following the closure of Mongolia's first coal mine.
The Nalaikh Just Energy Transition Strategy 2040, developed by the Mongolia Governor’s Office with support from the Innovation Regions for Just Energy Transition (IKI JET) project, is now part of the Government Action Plan (2024-2028) with full commitment from the Governor’s Council.
The strategy aims to map Nalaikh’s transition away from coal while addressing economic dependence, energy infrastructure challenges, and alternative livelihoods.
When coal mining ceased in the historically coal-dependent region of Nalaikh, Mongolia, in 1990, many jobs were lost. Though small-scale mining continued until 2019, 198 hectares of former mining land remain unrehabilitated, with potential for green and renewable energy use. The district is heavily dependent on government subsidies, and its outdated energy infrastructure relies almost entirely on coal, with 30% of households connected to a thermal power plant and 70% using household stoves with coal.
Stakeholder consultations and community surveys identified key challenges, including energy shortages, limited funding, unemployment among ex-miners, and high electricity costs. However, opportunities exist, such as local government support for just energy transition (JET), potential job creation in renewable energy, and community willingness to participate in land rehabilitation.
Based on these insights, the JET Strategy for Nalaikh District plots a transition to low-carbon, climate-resilient energy systems by 2040 through five key areas: economic diversification, coal mine rehabilitation, green jobs and social protection, transition to clean energy, and strategic partnerships. The strategy includes a detailed action plan, financing options, and measurable indicators, with implementation overseen by local authorities. The 2024 action plan will be integrated into the District Socio-Economic Directive and approved through the Citizen Council and Governor’s Office, ensuring alignment with national and local policies.
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