South Korea, Mongolia agree to cooperate on renewable energy, grid expansion

South Korea and Mongolia agreed to cooperate on renewable energy development, power grid expansion and district heating using heat pumps, on the occasion of President Lee Jae-myung's state visit to the country.

The Ministry of Climate, Environment and Energy signed a memorandum of understanding on energy transition cooperation with Mongolia's Ministry of Energy in Ulaanbaatar on Thursday (local time).

The signing took place in the presence of President Lee. Under the MOU, the two ministries agreed to work together on developing renewable energy sources including solar and wind power, expanding electricity grids, introducing smart grids and modernizing aging infrastructure, rolling out district heating using renewable energy and heat pumps, exchanging policy and technology on climate and energy, and building capacity and developing human resources.

To that end, the two sides agreed to establish a director-general-level joint energy cooperation committee and hold a Korea-Mongolia Energy Business Forum.

The ministry also said Posco International signed a separate MOU with Mongolia's Ministry of Energy and Newcom, a leading renewable energy company in Mongolia.

Posco International plans to capture waste heat from cooling water discharged by a combined heat and power plant in Ulaanbaatar and supply it as heating energy using heat pumps. The company also plans to explore co-investment with Newcom in new renewable energy projects.

Mongolia holds the world's fourth-largest coal reserves and relies heavily on coal for power generation and heating, resulting in severe air pollution. The country is seeking to address the problem by shifting to a renewable energy-centered system, leveraging its long hours of sunshine and favorable wind conditions.

"Building on this summit diplomacy, the government will firmly back South Korean companies' entry into the clean energy market while supporting Mongolia's energy transition on the strength of our heat pump, renewable energy and energy storage system technology," Climate Minister Kim Sung-hwan said.