Energy efficiency project concludes with great results


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Local news, 08.06.2022

The Public Investment in Energy Efficiency (PIE) project, implemented for the past eight years by GIZ Mongolia and the Municipality of Ulaanbaatar, with funding from UB Municipality, the German government, and the Swiss Agency for Development and Cooperation, has come to an end. A closing event was held on 4 May 2022 to share the project’s experience capitalization. 

Hand over ceremony of retrofitted kindergarten in Songinokharkhan district
Hand over ceremony of retrofitted kindergarten in Songinokharkhan district ©SDC

In times of climate change and possible global energy supply shortages, energy efficiency in construction is a topic of interest. However, in Ulaanbaatar, the coldest capital in the world, the issue has broader dimensions. Without good insulation, wintertime means cold buildings and devastating air pollution, problems that are most hazardous for children and the elderly but harm everyone. Improving insulation and providing residents with a better living environment is one of Ulaanbaatar’s top priorities.

The project provided thermo-technical renovation for 22 school and kindergarten buildings in ger districts. This resulted in a significant reduction of energy consumption (more than 40%), reduced air pollution, extended building life, and improved the learning environment. The estimated CO2 savings per year will be 5,296.5 tons. With a lifetime of 30 years for the measures implemented, 158,895 tons of CO2 will be saved. Children attending the warmer kindergartens are much healthier than children attending kindergartens without renovations. With indoor temperatures shifting from 15°C before refurbishment to 22°C, the number of sick days is almost half of the sick days taken by children in cold, un-renovated kindergartens. The number of illnesses has decreased by 48%, and there is a 78% reduction in teachers taking sick leave compared to 2017.

To scale up the energy efficiency (EE) retrofitting of public buildings, the project developed nine replicable energy-efficient blueprints allowing the Ulaanbaatar Municipality to save costs on planning and enabling reliable cost calculations.

To strengthen public finance management capacity and make budget expenditures more efficient and transparent, an investment information management system was introduced, regulations were updated, and supporting guidelines and manuals were developed and distributed. This has significantly improved workflows and the internal communication and coordination between municipal institutions. Several documents were also developed, including the Capital City Budget Guidelines, which include gender-specific needs for investment planning and allowing public access to the city’s budget information, and the Parent-Participatory Monitoring and Evaluation Methodology to support major building renovations. Numerous training sessions have been conducted that have made valuable contributions to capacity building and the development of good governance practices.

Ulaanbaatar’s Local Energy Efficiency Action Plan (LEEAP) is another important document developed and submitted to the Municipality of Ulaanbaatar under the PIE project. LEEAP has clearly defined short, medium, and long-term goals and actions for improved energy efficiency. It has become a very useful document for systematically allocating certain funds in the city budget, creating a stable investment environment, reducing greenhouse gas emissions, and fulfilling the city’s growing commitment to combating climate change. Ulaanbaatar intends to formalize this pioneering document in the near future to fulfill its local government obligations under the Energy Conservation Law.

In partnership with the Mongolian Bankers Association (MBA) and the Mongolian Sustainable Finance Association (MSFA), a pilot program was initiated to introduce Mongolia’s first-ever energy-efficient housing mortgage scheme in 2020 and 2021. The MSFA brought together seven of Mongolia’s 12 banks to design a new financial product offering mortgage loans for verified energy-efficient housing in Ulaanbaatar’s ger districts. Through this program, households in off-grid areas were able to build 26 energy-efficient homes that do not require coal burning during winter. To satisfy market demand, 24 affordable, energy-efficient house designs were approved. One of the houses built through the program was audited and certified by the EDGE green building certification system. Mongolia now officially has its first green building certified by an internationally recognized certification system.

Lastly, to address the need for the capacity building of different stakeholders, an e-learning program on energy-efficient buildings was developed and published on the Mongolian Association of Construction Designers website, among others, as part of a professional development program in the construction sector. The project demonstrated the successful institutionalization of program topics in relevant institutions. In total, 716 people from the construction and banking sectors were trained during the project period, ensuring the long-term transfer of EE and retrofit technology knowledge to the private sector. 

These and many other project results and impacts have been compiled in a magazine to document the project’s achievements and provide ideas and resources for further developing these topics. The magazine has been enhanced with links for further reading and contact information that could assist in training and encourages the continued use of the magazine. 

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