This “Establishing a regulatory sandbox framework for energy sector in Mongolia” report has been prepared within the framework of the IKI-funded OECD Sustainable Infrastructure Programme in Asia (SIPA), supporting Mongolia in aligning its energy sector development with long-term climate, economic, and social objectives. It represents a foundational step toward establishing a Regulatory Sandbox (RS) as a practical mechanism to modernize Mongolia’s energy regulatory system through structured experimentation and evidence-based reform. 

Within this context, the present report constitutes the first analytical phase of UNDP Mongolia’s support to the development of a Regulatory Sandbox for energy innovation. The sandbox initiative responds to growing recognition that existing regulatory frameworks in the energy sector are often ill-equipped to accommodate rapid technological change, new business models, and evolving policy priorities related to decarbonization, energy security, and social inclusion (OECD, 2025). The purpose of this report is to establish a conceptual and comparative foundation for regulatory experimentation in Mongolia’s energy sector. It does so by reviewing international best practices in regulatory sandboxes, benchmarking Mongolia’s legal and institutional framework against comparable models, and identifying key implications for sandbox design in the national context. 

Citation: “UNDP. 2026. Establishing a regulatory sandbox framework for energy sector in Mongolia. Ulaanbaatar”