INTRODUCTION TO GGGI

The Global Green Growth Institute (GGGI) is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. To learn more please visit about GGGI web page.

PROJECT BACKGROUND

The Global Green Growth Institute (“GGGI”) was established as an international intergovernmental organization in 2012 at the Rio+20 United Nations Conference on Sustainable Development. GGGI is dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. GGGI Members currently include Angola, Australia, Bahrain, Burkina Faso, Cambodia, Colombia, Costa Rica, Côte d’Ivoire, Denmark, Ecuador, Ethiopia, Fiji, Guyana, Hungary, Indonesia, Jordan, Kiribati, Kyrgyz Republic, Lao PDR, Mexico, Mongolia, Nicaragua, Norway, Organization of Eastern Caribbean States (OECS), Pakistan, Papua New Guinea, Paraguay, Peru, Philippines, Qatar, Republic of Korea, Rwanda, Senegal, Sri Lanka, Thailand, Tonga, Turkmenistan, Uganda, United Arab Emirates (UAE), United Kingdom (UK), Uzbekistan, Vanuatu and Viet Nam, and it is in the process of expanding its membership. GGGI works with partners in the public and private sector in developing and emerging countries around the world to transform their economies into a green growth model. GGGI has started supporting several countries to green their COVID-19 recovery plans and develop their Green New Deals to build back better while advocating for NetZero pledge. GGGI has its headquarters in Seoul, Republic of Korea, and conducts operations in several countries in Asia, the Pacific, Latin America, Caribbean, the Middle East, Africa and Europe.

The GGGI, in collaboration with the Ministry of Environment and Tourism (MET) and the Climate Change Research and Contribution Centre (CCRCC), is undertaking a Green Climate Fund (GCF) Readiness project to equip various stakeholders with the necessary skills to execute Mongolia’s Nationally Determined Contribution (NDC) in the coming years.

Mongolia’s energy sector is the primary source of greenhouse gas (GHG) emissions, accounting for more than half of the overall emissions. As per the updated NDC, the energy sector intends to contribute 11.3 Mt CO2-eq, equivalent to 66.7% of the proposed GHG emissions reductions. However, the energy sector faces numerous challenges, including perverse financial incentives, high capital and transaction costs, and insufficient capacity at various levels to adopt clean technologies and absorb renewable energy on a large scale.

Despite the existing policies to promote renewable energy and energy efficiency, several underlying barriers must be addressed and solved to attract more investment in renewable energy (RE) and energy efficiency (EE). Some of the significant risks include the grid’s absorption and transmission capacity, nighttime electricity flow to Russia, subsidized energy tariff that limits the private sector participation, the absence of long-term market signals, and high financial costs to develop and finance any project in the region.

Moreover, Mongolia should develop and enforce building energy codes that require energy-efficient construction practices and the use of energy-efficient materials and equipment. Since such action requires long road, the near-term goals could include, for example, the replacement of invertors and motors that should significantly affect the energy savings at industrial and commercial users.

Therefore, Mongolia needs a detailed plan that lays out specific alternatives defining where to invest, what alternatives are, and what policies and incentives can be introduced to help unlock and attract those investments.

This assignment intends to identify and propose options to mitigate technological, regulatory, financial, market, and other risks, enabling the achievement of the current NDC goals and opening the way for more ambitious energy targets in the future.

OBJECTIVE OF THE ASSIGNMENT

The selected Individual Consultant shall produce report that include barriers to private sector investment in renewable energy (RE) and energy efficiency (EE), along with proposed measures to mitigate those barriers. The Consultant shall evaluate the various risks associated with investing in RE and EE and recommend strategies to reduce those risks including a range of policy and financial risk mitigation measures.

In the Mongolian context, technical risks like the grid’s capacity to handle variable renewable energy; and financial risks like low, subsidized energy tariffs are of critical importance. The Consultant should assess the grid’s capacity to handle more renewable energy by simulating different scenarios and evaluate the effects of low subsidized energy tariffs and high financing costs on the investment landscape.

The Consultant shall evaluate a range of policy, technical and financial measures to de-risk scaled up investments in renewable energy and energy efficiency. These measures may include but are not limited to the potential for improving the current state of the grid including options such as adding additional battery energy storage systems (BESS) and extending key substations around the central grid ring. Additionally, the Consultant shall explore potential recommendations for improving the current renewable energy law, such as allowing private developers to undertake various greenfield projects, including battery energy storage systems, ground source heat pumps, and solar district heating etc.,

In addition to possessing expertise in the field of energy efficiency, including knowledge of the latest technologies and best practices, the Consultant shall conduct an assessment of the barriers to investing in energy efficiency and identify measures to mitigate them. The Consultant shall review current policies and regulations related to energy efficiency in Mongolia to identify potential options for improving the investment landscape and achieving GHG emissions reductions.

DELIVERABLES AND PAYMENT SCHEDULE

To deliver the assignment, the selected Consultant shall carry out the following key activities:

1. Assess the risks associated with scaled-up investments in renewable energy (market, social acceptance, technical, labor inputs, developer, payment and credit, financing, currency, and sovereign risks) to scaled up investment in renewable energy (such as solar, wind, solar rooftop systems, battery energy storage system, etc.) and energy efficiency (insulation, windows, motors and invertors, etc.) in the Mongolian market.
2. Describe the policy and financial de-risking instruments that are currently available in the Mongolian market and identify any gaps that need to be filled to facilitate scaled-up investment in renewable energy and energy efficiency.
3. Review international experiences with de-risking renewable energy and energy efficiency investments that are most relevant to the Mongolian market and identify any further de-risking options for Mongolia.
4. Consult with public and private energy generators, private construction companies, project developers, financial institutions, policy makers, regulators, international financial institutions (IFI) and multilateral development banks (MDBs) and other relevant experts and stakeholders to complete the assessment and prioritize amongst risks and potential de-risking instruments for both renewable energy and energy efficiency measures.

The table below describes the deliverables, expected delivery date and associated payments:

The final report is expected to be around 30 pages, plus annexes. The initial outline of the report is proposed below but should be confirmed with the inception report.

1. Executive summary (1-2 pages)

2. Introduction (2-3 pages)

a. Context and objectives

b. Methodology and approach

c. Summary of findings and report structure

3. Summary of risks, existing de-risking instruments, and gaps to be filled (10 pages)

a. Summary of risks, common risks and RE and EE technology specific risks (full details for each technology shall be included in tables and annexes)

b. Description of existing policy and financial de-risking instruments available in the Mongolian market (full details shall be included as annex)

c. Clear examples of risks at the project level and its negative impacts to the energy sector

d. Summary of most important risks to be addressed

4. De-risking options & recommendations (10 pages)

a. Description of the existing policy and financial de-risking instruments

b. International experiences and good practices most relevant to Mongolia – case study to be provided

c. Recommendations and suggestions to improve the current investment climate to support further development of RE and EE

5. Conclusions and recommended next steps, findings from workshop. (3-5 pages)

6. Summary (2-3 pages)

7. Annexes:

a. Tables with risk analysis by technology with specific assumptions

b. Description of existing financial de-risking instruments available in Mongolia

c. Case studies/summaries of international de-risking instruments and experiences

d. Workshop findings and key stakeholders inputs

e. Questionnaire and interview questions and answers, if any

f. Photographs and supporting materials from any level of discussions held and workshop organized

WORKING ARRANGEMENTS AND REPORTING

• The consultant shall finalize the list of technologies to be assessed in consultation with GGGI, Ministry of Energy (MoE) and Energy Regulatory Commission (ERC). It is anticipated that 6-8 technologies should be assessed (utility scale solar, utility scale wind,off grid hybrid solutions, distributed solar (grid connected/ not grid connected), battery energy storage system, motors & invertors, insulation, ground-source heat., etc).
• The consultant is expected to document the inputs gathered through interviews and meetings with stakeholder consultations and submit them along with the draft and final reports.
• The consultant is expected to present preliminary results to stakeholders and incorporate their feedback and suggestions. The costs of a consultation workshop shall be covered by GGGI upon mutually agreeing the workshop agenda and venue.
• All outputs and deliverables must be in English. In addition, the Consultant may must be required to submit the outputs in Mongolian together with its English translation to facilitate stakeholder’s active engagement.
• Final report must be approved by the GGGI upon the approval from the MoE and ERC. The Consultant shall consider the comments and necessary revisions proposed. Within 14 days from the receipt of the comments or modification proposal from the GGGI, the Consultant shall prepare and submit the final versions of the report

EXPERTISE REQUIRED

The description of required expert is split into following parts:

• Master’s degree or equivalent experience in relevant field (engineering, finance, climate finance, law, renewable energy, energy efficiency, project finance);
• 5-8 years of professional experience in energy, finance, or legal sector preferred;
• Professional experience in renewable energy, project development, energy efficiency, green finance, and/or project finance;
• Knowledge of Mongolian energy market and relevant experience with proven track record carrying out similar assignments;
• Knowledge of Mongolian finance and banking market preferred;
• Existing close network with key stakeholders (policymakers, regulators, financiers, private investors, consumer representatives) necessary to deliver this assignment in collaboration with the local key stakeholders;
• Strong analytical capabilities, ability to synthesize information, and ability to deliver unbiased report is preferred;
• Proficiency in English and Mongolia are strongly required.

ADMINISTRATIVE INFORMATION

To apply for this assignment:

• Please submit resume and cover letter in English by the closing date of 20th of August, 2023
• Resumes will be reviewed, and only short-listed candidates will be invited for an interview

Date to close is Korean Standard Time (KST). Applications submitted after the deadline will not be considered. Cover Letter, and resume must be sent in English. A consortium, or a firm may not be engaged for the individual consultant assignment.