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ULAANBAATAR — Smart electricity meter installation in Mongolia reached 93.8% as of October 12, 2026, the Ministry of Energy said. The initiative is intended to reduce losses in the electricity distribution network, improve transparency in customer billing and advance the digital transformation of the energy sector.

Digitising electricity consumption records

Smart meters can automatically measure electricity consumption and transmit the data to a digital system. This reduces the need for manual meter readings, enables more regular monitoring of consumption and makes it easier to investigate discrepancies in billing.

According to the Ministry of Energy, Minister B. Naidalaa and the management of Ulaanbaatar Electricity Distribution Network SOE reviewed the project’s implementation on October 12. The ministry reported that smart electricity meter installation had reached 93.8%.

However, a high installation rate does not mean that all of the project’s intended benefits have been achieved. Meter performance, the reliability of data transmission systems, customer service and data protection will all be critical to determining its actual value.

Impact on network losses and service quality

Integrating smart meter data with distribution network management can improve the analysis of consumption patterns and help identify abnormal usage and technical losses. Giving customers faster access to their consumption data could also help them manage their electricity use.

Smart meters alone will not eliminate technical losses in the electricity system. Achieving meaningful results will require a coordinated effort involving the modernisation of ageing lines and substations, maintenance of the distribution system, information management software and customer services.

Official information says work is also under way under the energy sector’s 2026–2035 smart-grid and information technology strategy to expand electricity meter data management systems and customer software.

Challenges ahead

Assessing the project’s effectiveness will require more than counting the meters installed. It will also be important to measure the share of customers fully connected to the system, how frequently data is updated, and how billing disputes and network losses change over time.

As customer information becomes increasingly concentrated in digital systems, attention must also be paid to cybersecurity, personal data protection and ensuring uninterrupted service when systems malfunction.

The high installation rate marks an important stage in the energy sector’s digital modernisation. Its long-term impact, however, should be assessed through actual network losses, service quality and changes in customers’ electricity costs.