Solar Photovoltaic (PV) Distribution and Decentralized Electricity Generation

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Solar Photovoltaic (PV) Distribution and Decentralized Electricity Generation
Solar Photovoltaic (PV) Distribution and Decentralized Electricity Generation
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Alternative Energy
Business Model Description

Invest in B2B/B2C businesses that distribute and install rooftop solar photovoltaic panels for households and commercial units. Examples of companies active in this space are:

Sopoko LLC, founded in 2011, is a solar PV panel distributing company in Mongolia. Sopoko LLC established the first-ever solar PV panel manufacturing plant with a capacity of 10MW and operated it between 2011 and 2016. Their main market is herding community and households in rural areas of Mongolia.

Malchin LLC was founded in 1994 to provide wind and solar power to herders and people in rural areas and to improve their living conditions and lifestyle. It cooperates with many foreign and domestic companies that deal with renewable energy and has set up its branches in Russia in 2010 and in Thailand in 2012 and is successfully operating its business in the Southeast Asian market.

Expected Impact

Providing clean energy solutions, contributing to energy security, and allowing people to have cost-saving options for their electricity usage.

How is this information gathered?
Updated: 8 Jul, 2023 Date of Production: 9 Jul, 2023
Mongolia
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
The country’s combined wind and solar power potential is estimated to be equivalent to 2,600 gigawatts (GW) of installed capacity or 5,457 terawatt-hours of clean electricity generation per year.
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Affordable and Clean Energy (SDG 7)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Gender Equality (SDG 5) Reduced Inequalities (SDG 10) Climate Action (SDG 13)

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Sector Sources
  • 1) Government of Mongolia 2019. Mongolia Voluntary National Review Report 2019: Implementation of the Sustainable Development Goals. Ulaanbaatar 2) Government of Mongolia, (2020). Vision 2050 3) Government of Mongolia, (2021). New Recovery Policy 4) Energy Regulatory Commission of Mongolia. (2022). Statistics on Energy Performance 2021. Retrieved October 23, 2022, from https://erc.gov.mn/web/mn/statistic 5) Education during the pandemic: Dimensions of the digital divide in Mongolia. (n.d.). Retrieved October 25, 2022, from https://asia.fes.de/news/mongolia-digital-divide 6) Asian Development Bank, “Unlocking Mongolia's Rich Renewable Energy Potential” (Asian Development BankJuly 24, 2020) <https://www.adb.org/news/features/unlocking-mongolias-rich-renewable-energy-potential> accessed October 19, 2022 7) Mongolia Energy Situation - Energypedia. Retrieved October 23, 2022, from https://energypedia.info/wiki/Mongolia_Energy_Situation 8) Asian Development Bank (2020). First Utility-Scale Energy Storage Project: Report and Recommendation of the President. https://www.adb.org/sites/default/files/project-documents/53249-001/53249-001-rrp-en.pdf 9) Asian Development Bank (2020). First Utility-Scale Energy Storage Project: Gender Action Plan. https://www.adb.org/sites/default/files/project-documents/53249/53249-001-gap-en.pdf 10) Kitchell, L. (n.d.). A Ray of Hope: Mongolia’s Burgeoning Solar Power Industry. Retrieved October 24, 2022, from https://blog.mongolia-properties.com/a-ray-of-hope-mongolia-burgeoning-solar-power-industry
IOA Sources
  • 11) Integrated statistical database of Mongolia. Number of households connected to power sources. https://www.1212.mn/tables.aspx?tbl_id=DT_NSO_3500_001V1&13999001_select_all=0&13999001SingleSelect=_T5_T3_T1_T4_T2&SOUM_select_all=0&SOUMSingleSelect=_0_511&YearF_select_all=0&YearFSingleSelect=_2020_2010&viewtype=table 12) WorldBank Group Pubblications, 2014. Development Impacts of Solar-Powered Electricity Services in Mongolia. https://issuu.com/world.bank.publications/docs/development_impacts_of_solar-powere 13) Global Green Growth Institute. (2020). Development of Green  Energy Systems and Energy Efficiency in Mongolia. https://gggi.org/wp-content/uploads/2021/02/gggi_eng2.pdf 14) Partnership on Transparency in the Paris Agreement: MONGOLIA’S PRIVATE SECTOR LED RENEWABLE ENERGY PROGRAMME. 2019. https://transparency-partnership.net/system/files/document/200114_GPD_Mongolia_RZ.pdf 15) Mongolia’s Ulaanbaatar Breathes Easier After Cleanup of Air Quality. (2022, June 9). Asian Development Bank. Retrieved October 24, 2022, from https://www.adb.org/results/mongolias-ulaanbaatar-breathes-easier-after-cleanup-air-quality 16) Williams, J. (2022) Why does mongolia have such a high carbon footprint?, The Earthbound Report. Available at: https://earthbound.report/2022/10/06/why-does-mongolia-have-such-a-high-carbon-footprint/ (Accessed: January 31, 2023). 17) United Nations & Asian Development Bank, UN-ADB Joint Mission Report: SDGs Mainstreaming, Acceleration and Policy Support. in , Ulaanbaatar, 2018. 18) World Bank Global Electrification Database from "Tracking SDG 7: The Energy Progress Report" led jointly by the custodian agencies: the International Energy Agency ( IEA ), the International Renewable Energy Agency ( IRENA ), the United Nations Statistics Division ( UNSD ), the World Bank and the World Health Organization ( WHO ). 19) World Health Organization issues recommendations to tackle health impacts of air pollution in Mongolia (2018) World Health Organization. Available at: https://www.who.int/mongolia/news/detail/28-02-2018-world-health-organization-issues-recommendations-to-tackle-health-impacts-of-air-pollution-in-mongolia#:~:text=More%20than%20half%20of%20child,deaths%20per%20100%20000%20people. 20) Mongolia's Updated Nationally Determined Contribution (NDC). (2020). https://unfccc.int/sites/default/files/NDC/2022-06/First%20Submission%20of%20Mongolia%27s%20NDC.pdf 21) Government of Mongolia. Law on renewable energy. (2007). https://legalinfo.mn/mn/detail/465 22) Mongolian Standard, Photovoltaic (PV) module safety qualification – Part 2: Requirements for testing. MNS IEC 61730-2 : 2020 23) EBRD and GCF support green lending in Mongolia. (n.d.). EBRD.Com. Retrieved October 26, 2022, from https://www.ebrd.com/news/2022/ebrd-press-release-ebrd-and-gcf-support-green-lending-in-mongolia-.html 24) Alexander Harrucksteiner, Jagruti Thakur, Katja Franke, Frank Sensfuß, A geospatial assessment of the techno-economic wind and solar potential of Mongolia, Sustainable Energy Technologies and Assessments, Volume 55, 2023, 102889, ISSN 2213-1388, https://doi.org/10.1016/j.seta.2022.102889."