Demand in the Desert

Mongolia's mining-based economic development and the sustainability of its urban economies depend on both water and energy. The examination of the water energy nexus in two river basins in Mongolia shows that water availability is the binding constraint as energy facilities, mining operations, agriculture, and urban water users compete for scarce water resources. Development of new technologies for efficient water and energy use, introduction of renewable energy options, and water demand management through economic instruments are recommended. However, achieving greater water security requires integration of water resource considerations into energy and mining development decision making, while strengthening the capacity of newly formed river basin organizations.