E3 Directors Dr. Fritz Kahrl and Michele Chait partnered with the Regulatory Assistance Project (RAP) to develop recommendations to improve renewable generation procurement in Mongolia. E3’s scope included stocktaking of Mongolia’s existing procurement framework, creation of a model power purchase agreement (PPA) for renewable energy procurement, and development of an excel-based PPA pricing model. E3 also recommended changes to Mongolia’s current procurement processes. These included a transition to competitive procurement from the current feed-in tariff structure, renegotiation of certain clauses in existing PPAs to provide for construction milestones and operations period security, and compensated curtailment. The PPA pricing model reflected PPA and regulatory risks borne by the sponsor as well as Mongolian tax and finance specifics. In September 2017, E3 carried out a four-day capacity building training program in Mongolia attended by staff from the Ministry of Energy, National Dispatching Center, and the Energy Regulatory Commission.
