Abstract
In recent years, Ulaanbaatar, a capital of Mongolia has witnessed major problem that air quality reaches hazardous level during the winter season. Coal combustion for heating of every house in "Ger" district is main reason. One way to reduce the air pollution is mass usage of electric heater. However, there are several difficulties such as overload and degradation of transformers and other equipment used in distribution and transmission systems as well as power shortage occurrence in evening peak period due to residential consumption. This study aims to contribute for solving the air pollution and power shortage problem in Mongolia. One possible solution could be distributed generation (DG) with photovoltaic (PV) penetration. In this study, PV with energy storage (ES) hybrid system to reduce peak load is analyzed. We proposed the suitable structure of PV-ES hybrid for Mongolian household, and suggested several operation scenarios. Optimal operation algorithm is carried out based on a comparison aspect from economical, grid impact and PV penetration possibility. The economic analyse shows annual income of 520USD, and has a payback period of 8 years for selected scenario. The proposed PV-ES system structure is verified by experimentation set on the building rooftop in city center. The suggested scenario is planned to apply for system in further research.