Mongolia has signed power purchase agreements with winning bidders from its first competitive renewable energy auction, which awarded 220 MW of solar capacity and 135 MW of battery energy storage across five projects, with a second auction scheduled for Sep 11, according to PV Magazine.

The debut tender, held in June, attracted interest from 115 domestic and international companies, with 19 qualified bidders after technical evaluations and five selected for development. Winning tariffs ranged from $0.049/kWh in Dundgovi to $0.078/kWh in Khentii. Projects are expected to be operational before the peak winter demand season, according to the government.

Prime Minister Nyam-Osoryn Uchral said the results reflect growing investor confidence and the government's commitment to opening the energy sector to competition and private investment.

The second auction will seek an independent power producer to develop renewable energy projects with a stabilization solution capable of supplying the Gobi region at 99.5% reliability. Two connection points in Omnogovi province have been specified, though no targeted procurement capacity has been stated.

Foreign developers must form a consortium with a Mongolian-registered company holding the majority share. A bid bond of $5,000 per MW of renewable capacity has been set, with no bid required for the stabilization solution or battery storage.

Mongolia's renewable energy push is driven by efforts to diversify its coal-based energy mix and tap export opportunities in neighboring China. Cumulative solar capacity stood at 129 MW at the end of last year, according to the International Renewable Energy Agency, down from 143 MW a year earlier.