B. Byambasaikhan, Chief Executive Officer, Newcom Group, Mongolia

1. MEETING MONGOLIA’S POWER
NEEDS
B. Byambasaikhan
CEO of Newcom
31 Oct 2012

2. 1) MONGOLIA ENERGY NEEDS

3. 1) MONGOLIA ENERGY NEEDS
907 1002
1143
1284
1915
2321
2747
3080
0
500
1000
1500
2000
2500
3000
3500
2011 2012 2013 2014 2015 2020 2025 2030
Mongolia - Energy Demand Forecast (MW)
Total Demand
Current Capacity: Installed Capacity of Power Generation – Total – 1062 MW

4. • Newcom, GDF Suez, Sojitz Corporation and
POSCO Energy agreed to build-operate-
transfer Combined Heat and Power Plant #5
in Ulaanbaatar
• ADB financed the feasibility study and is the
lead advisor to the Government of Mongolia
Benefits:
2) DEVELOPMENT OF CHP5
1. Reduces pollution - Exceeds emission standards of both Mongolia and the World Bank
2. Efficient plant – 405 MW gross power generation, 587 MW heat and 450 MW electricity generation in
condensing mode
3. Financing from diverse international sources – Letter of support from ADB, EBRD, JBID, KEXIM and KSURE

5. 3) RENEWABLE ENERGY POTENTIAL
Wind:
• Mongolia is estimated to have good-to-excellent
wind resources of over 2,550 terawatt-hours per
year.
• The South Gobi region alone is estimated to have
over 300,000 megawatts of wind electric potential.
Solar:
• Approximately 70 percent of Mongolia has good
solar resources.
• The good solar resource area has approximately
2,900 - 3,000 sunshine hours per year. A majority
of this solar resource area is the Gobi desert.
Wind + Solar + Hydro + Geothermal = 2.6 TW of potential energy

6. • Mongolia’s “National Renewable Energy Program (2005-2020)” plans to
increase the percentage of renewable energy in the total energy supply to
20%
• The “Renewable Energy Law of Mongolia,” was approved by the
Parliament in January 2007
• 2010, Parliament adopted Resolution No.72
– improve the financial and economic capacity of energy industries and companies
– to index energy tariffs
– to implement a transition into market based commercial system from 2014
• Approval of Law on Concession in 2010, which opened up
opportunities to implements projects through, for example, Public-
Private-Partnerships
4) MONGOLIA INVESTMENT CLIMATE

7. First private sector investment in the energy
sector
5) FIRST WIND TURBINE SUCCESSFULLY ERECTED ON 2 OCT 2012
Investment: 120 million USD
Average Wind Speed: 8m/s
Total WTGs: 31
Wind Farm Capacity: 50 МW
Annual electricity generation: 170 M kWh
Connected to the Central Energy Grid System
Largest power plant to be commissioned in
last 30 years
Investors:
Newcom EBRD
General Electric FMO

8. 6) DEVELOPMENT OF SALKHIT WIND FARM

9. 7) ASIA SUPER GRID CONCEPT
Idea behind Asia Super Grid
• The Fukushima nuclear plant incident showed
nuclear power is not cheap nor reliable
• Growing energy demand + reliance on fossil
fuel  contribution to climate change
• Mongolia has a vast amount of renewable
energy resources
Way forward
• Private sector led initiative between Newcom
and SB Energy
• Clean Energy Asia LLC established
• Start of 300 MW wind park feasibility study
• This project will make Mongolia the region’s
renewable energy leader

10. 8) OVERVIEW OF NEWCOM GROUP
 First mobile telecommunications in Mongolia, which evolved
as a dominant player with currently half the market share
 Wholly owned domestic airlines serving more than half of the
domestic market
 First independent power producer and wind power generator
 First Gobi centered equipment & machinery rental and sales
company
• Established in 1993, Mongolian ownership
• A family with more than 2200 energetic, talented and motivated people

11. Thank you for your attention
Visit us at www.newcom.mn