Give Ulaanbaatar’s Ger communities the clean energy and air they deserve
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Mongolia is a landlocked country and lies in Central Asia, surrounded by Russia and China.1 It is the world’s least populated country, with 3.5 million people across an area of 1,564,116 sq km.2 The 2020 census shows that Mongolia had 897 400 households, out of which only 60.9% are considered houses and the rest are gers.3 Gers are traditional felt houses that are mainly used by nomads in Mongolia’s countryside but also by low-income households residing on the outskirts of Ulaanbaatar. About 900 thousand people, or 27.1 percent of the total population of Mongolia, were below the country’s poverty line in 20224 and 24.4 percent of the population was estimated to be below the World Bank’s international upper middle income poverty line, which is defined as $8.30 per person per day (in 2021 PPP).5
Mongolia’s air pollution problem reached its peak in 2025, with almost 7000 people dying each year.6 The concentration of particulate matter 2.5 in Ulaanbaatar is above 1,000 micrograms per cubic meter (μg/m3)7 which is forty times more than what the World Health Organization considers safe,8 leading to major health concerns for the population. Most of the pollution from the heating sector in Ulaanbaatar is generated through coal burning in ger districts where district heating systems are not available.9 An average household uses about 3.3 metric tons of coal for one winter, which amounts to about ₮450,000 ($158 USD).10 This makes up to 80% of all pollution from November to April.11 As the temperatures can reach up to -28°C during the winter months,12 heating is necessary for survival.
In 2023, coal and coal products made up 67% of Mongolia’s total energy supply.13 Renewables' share of electricity generation in Mongolia only makes up a total of 9% as of 2023.14 A GIS analysis by IRENA (2023) shows that only around 11% of buildings are found within areas covered by networks of district heating.15 Additionally, gers have the highest heating needs and lose four to five times more heat than conventional housing.16
Electrification remains extremely limited; only about 5% of Ger households currently use electric heating.17 A World Bank study18 projected that if Ger households switched to electricity, it would negatively affect the Electricity Distribution Network because it would face supply problems.19 Thus, an off-grid solution is needed.
While significant renewable energy and housing programs have been implemented, most have not been specifically targeted at ger district households or have operated only at pilot or limited scale. Past initiatives have addressed renewable generation, rural electrification, housing improvements, and cleaner heating, but coverage in urban ger areas remains fragmented and insufficient for widespread household-level impact. What is now needed is a coordinated, large-scale approach focused directly on improving energy access, heating, and housing conditions in Ulaanbaatar’s ger districts.
Based on the limited reach of district heating, no access to the energy grid as well as inefficient ger insulation, the solution needs to be off-grid, paired with insulation packages and cheaper than coal to be an affordable alternative for ger households as elaborated in the 3-pillar framework below.
IRENA (2023) estimates Mongolia’s solar potential at around 4 774 TWh per year.20 With 270-300 sunny days a year and an average of 2250-3300 hours of sunlight in most of its territories, it provides perfect conditions for solar power.21 Off-grid solar home systems are ideal for individual houses such as gers (see graphic 8). The solar home kit comes with a solar PV and battery and does not need to be connected to the grid.22
A simple solar PV kit costs about USD 150.23 Under the lease-to-own approach, households slowly acquire a solar home system by making small, regular payments over an agreed period between one year and three years.24 The model ensures access to clean energy without putting households into unserviceable debt, and after repayment, eliminates future energy costs.
While solar home systems provide the energy, insulation is needed to keep the warmth inside. Gers lose four to five times more heat than conventional housing.25 Engineers Without Borders Norway, together with Field Ready, Polyfloss Factory, and IFRC Shelter Research Unit, have come up with an innovative field-based solution to insulate shelters. The process turns discarded plastic into lightweight cotton-like fibres.26
Since Polyfloss machines are portable, the production happens exactly at the place where it is needed, reducing transport costs and plastic waste as the plastic can be locally collected. For example, households in Syria received exterior insulation panels and reported increased indoor temperatures with reduced fuel consumption.27
A previous project carried out by the Millennium Challenge Corporation proved that energy-efficient stoves could cause a real positive change in household comfort and air quality.28 Households using energy efficient stoves reported higher average indoor nighttime temperatures compared with households on baseline stoves.29 Energy efficient stoves substantially reduced harmful emissions and30 a 30% decrease in PM2.5.31
PAYG SHS are cheaper over the long-term, provide employment opportunities in the community, and have shown a higher overall household income. Studies show that through the implementation of SHS, at least one family member is taking on more economic activities,32 and household incomes can increase by as much as USD 35 per month.33 Moreover, it provides local employment opportunities. For instance, Azuri’s PAYGO operations in Kenya have created over 2,000 new jobs in sales, maintenance, and customer support.34
SHS increases gender equality and a better learning environment. The previous project by Gerhub showed that women have more time available due to solar-powered stoves.35 Moreover, longer electricity access improves children’s evening study conditions.36
There is no additional strain put on the country’s already overloaded electricity network. As households transition from gers to other housing, their SHS can easily be carried with them even resold for continued use. Similarly, the insulation technology uses plastic waste to turn into insulation foils,37 hence contributing to a circular economy.
Electric stoves reduce CO2 emissions and PM2.5 particles, which improves overall air quality and decreases the likelihood of respiratory diseases. Overall, the households receive access to clean cooking and heating solutions that offer better indoor air quality together with reduced emissions and better health.
High temperatures in summer reduce PV efficiency as the cell temperature increases above 25°C.38 Furthermore, long hours of low sunlight in winter raise continuity supply concerns.
High upfront costs for SHS, electric stoves, and cooking appliances remain a major barrier for low-income households in ger districts. Whereas the solar kits may be affordable under installment models, there is an additional significant second-stage financial burden represented by the cost of the electric stoves. Without customized financing mechanisms, such costs would tend to exclude most households.
Previous projects showed that efficiency gains alone will not be sufficient to reduce household energy expenditures if behavioral factors are not addressed. Gradually phasing in electric appliances while temporarily retaining coal as a backup can minimize social resistance.
Scaling SHS requires targeted “smart subsidies” involving lowering the upfront costs of SHS kits while maintaining partial cost recovery to include ownership, long-term use, and maintenance of the systems.
Mongolia may bring in established PAYG providers by providing them with attractive investment conditions or supporting the emergence of domestic start-ups. Impact investors and climate funds may support via equity investments, while IFIs can provide grants or extend sovereign loans converted by the government into consumer subsidies for second stage cists (i.e., electrical cooking supplies).
There must be sufficient battery storage to cover times when sunlight is low. Energy security risks can be minimized if households are allowed to keep limited use of coal as a temporary backup during the transition phase.
The Coal to Solar initiative indicates that peer learning and visible benefits within the community are the major drivers of adoption. For instance, a Mongolian father said he was skeptical of solar power and joined the initiative after seeing the positive impact in his daughter’s house.39
Mongolia’s air-pollution crisis demands a solution that can be implemented rapidly, is affordable to low-income households, and scalable across the ger districts of Ulaanbaatar. PAYG solar home systems need to be combined with targeted insulation upgrades plus clean electric cooking packages to address both sides of energy supply and demand. This way it overcomes grid constraints and improves affordability without large-scale infrastructure investments. Smart subsidies and concessional finance through IFIs make this model financially viable and rapidly scalable.
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1. “Mongolia Country Brief | Australian Government Department of Foreign Affairs and Trade,” accessed December 6, 2025, https://www.dfat.gov.au/geo/mongolia/mongolia-country-brief.
2. Ibid.
3. IRENA (2023), Renewable energy solutions for heating systems in Mongolia: Developing a Strategic heating plan, International Renewable Energy Agency, Abu Dhabi. Accessed December 10, 2025, https://www.irena.org/Publications/2023/Aug/Renewable-Energy-Solutions-for-Heating-Systems-in-Mongolia
4. “Mongolia | World Bank Group,” accessed December 6, 2025, https://www.worldbank.org/ext/en/country/mongolia.
5. Ibid.
6. Enkhuun Byambadorj and Bolor Lkhaajav (2025). Mongolian Public Raises Outcry Over Air Pollution and Public Health Concerns. Accessed December 12, 2025 via https://thediplomat.com/2025/02/mongolian-public-raises-outcry-over-air-pollution-and-public-health-concerns/
7. “Is the Raw Coal Ban a Silver Bullet to Solving Air Pollution in Mongolia?: A Study of the Mongolian Government’s Air Pollution Reduction Policies and Recommendations in the Context of COVID-19 | Journal of Public and International Affairs,” accessed December 6, 2025, https://jpia.princeton.edu/news/raw-coal-ban-silver-bullet-solving-air-pollution-mongolia-study-mongolian-governments-air.
8. World Health Organization Issues Recommendations to Tackle Health Impacts of Air Pollution in Mongolia.” Accessed December 6, 2025. https://www.who.int/mongolia/news/detail/28-02-2018-world-health-organization-issues-recommendations-to-tackle-health-impacts-of-air-pollution-in-mongolia
9. “Is the Raw Coal Ban a Silver Bullet to Solving Air Pollution in Mongolia?: A Study of the Mongolian Government’s Air Pollution Reduction Policies and Recommendations in the Context of COVID-19 | Journal of Public and International Affairs,” accessed December 6, 2025, https://jpia.princeton.edu/news/raw-coal-ban-silver-bullet-solving-air-pollution-mongolia-study-mongolian-governments-air.
10. Ibid.
11. Ibid.
12. World Bank Group and Asian Development Bank. Climate Risk Country Profile. World Bank, Washington, DC and Asian Development Bank, Manila, 2021. https://doi.org/10.1596/36375.
13. "Mongolia - Countries & Regions,” IEA, accessed December 8, 2025, https://www.iea.org/countries/mongolia/energy-mix.
14. Overview, Solar and wind power in Mongolia: 2024 policy, and Miquel Muñoz Cabré. Solar and Wind Power in Mongolia: 2024 Policy Overview. October 29, 2024. https://doi.org/10.51414/sei2024.046.
15. IRENA (2023), Renewable energy solutions for heating systems in Mongolia: Developing a Strategic heating plan, International Renewable Energy Agency, Abu Dhabi. Accessed December 10, 2025, https://www.irena.org/Publications/2023/Aug/Renewable-Energy-Solutions-for-Heating-Systems-in-Mongolia
16. Ibid.
17. Ibid.
18. “MONGOLIA: Heating in Poor, Peri-Urban Ger Areas of Ulaanbaatar | Appendices | ESMAP,” accessed December 8, 2025, https://www.esmap.org/node/70785.
19. Ibid.
20. IRENA (2023), Renewable energy solutions for heating systems in Mongolia: Developing a Strategic heating plan, International Renewable Energy Agency, Abu Dhabi. Accessed December 10, 2025, https://www.irena.org/Publications/2023/Aug/Renewable-Energy-Solutions
21. Ibid.
22. Ibid.
23. Ibid.
24. Ibid.
25. Ibid
26. Engineers Without Borders, https://iug.no/vaart-arbeid/waste-for-warmth
27. The Humanitarian Innovation Programme,
https://hip.innovationnorway.com/article/waste-for-warmth:-protecting-refugees-against-cold-winters
28. Better air quality with energy efficiency in Mongolia. https://www.mcc.gov/resources/doc/evalbrief-080114-mng-stoves/#stove-and-fuel-usage
29. Ibid.
30. Ibid.
31. Ibid.
32. GOGLA (2018), Powering Opportunity: The Economic Impact of Off-Grid Solar, GOGLA, Utrecht, https://gogla.org/wp-content/uploads/2024/11/powering_opportunity_global_report.pdf
33. "Is the Raw Coal Ban a Silver Bullet to Solving Air Pollution in Mongolia?”
34. GOGLA (2018), Powering Opportunity: The Economic Impact of Off-Grid Solar, GOGLA, Utrecht, https://gogla.org/wp-content/uploads/2024/11/powering_opportunity_global_report.pdf
35. Ibid.
36. Ibid.
37. Engineers Without Borders, https://iug.no/vaart-arbeid/waste-for-warmth
38. EcoFlow. “At What Temperature Do Solar Panels Lose Effectiveness?” May 28, 2025. https://www.ecoflow.com/us/blog/what-temperature-do-solar-panels-lose-effectiveness.
39. Devor Rodabaugh (2025). Under the Eternal Blue Sky: How Mongolian Families Are Reimagining Ger Living. Accessed December 12, 2025 via
https://thediplomat.com/2025/05/under-the-eternal-blue-sky-how-mongolian-families-are-reimagining-ger-living/
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