OPPORTUNITIES AND RISKS OF MONGOLIA JOINING THE ASIAN SUPER-GRID

Abstract

In light of increasing regional energy demands, and in recognition of both the growing air pollution problems and natural disasters among Northeast Asian countries, the region’s leading nations are considering the possibility of a renewable energy network. Such a network would aim to establish clean, secure, dependable energy sources throughout Northeast Asia. If Mongolia joins this promising renewable energy project, like Russia, it would become a leading exporter for wind, solar, and hydro energy to China, South Korea, and Japan. Based on liberal market theory, this thesis provides an overview of Mongolia’s economic situation in relation to the proposed Asian super grid project and offers a brief history and analysis of the small state’s third-neighbor foreign policy. This analysis shows the potential for all participating countries to benefit from secure, cheaper, and cleaner renewable energy while producing less carbon pollution. Finally, using a qualitative methodology, the thesis explores how Mongolia’s joining the Asian super grid can enable the small state to diversify its current coal-dependent economy, strengthen its national security, and avoid becoming the energy security subject of a superior state.