Mongolian energy sector development and its future trends, and long term feature of regional cooperation in energy sector

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  • Mongolian Energy Sector Development

  • Legal framework of Energy Sector is establishing to increase private sector participation and favorable conditions of investments into energy sector

  • Sustainable energy supply, Mongolian participation in regional power integration

Mongolian Energy Sector Development

Parliament of Mongolia and Government defined the short and long term strategies of the Mongolian Energy Sector Development like as “Program of Unified Power Systems of Mongolia”, “National Renewable Energy Program”, “100,000 Solar home Program” as well as  “Comprehensive National Development Strategy (NDS) of Mongolia” and Government programs, which are including future trends of development.

In the energy sector development policy papers, there are planned that Mongolian power system will be consisted of Central, Western and Eastern region and Altai-Uliastai energy systems as well as Dalanzadgad power plant and power systems in Gobi, which will be interconnected each other in 2040 with high voltage transmission power lines, and there will be supplied own electricity demand from large scale thermal power plants based Tavantolgoi, ShiveeOvoo, Baganuur, Khushuut, NuurstHotgor, Aduunchuluun and Mogoingolcoal mines and hydro power plants on Egiin, Orkhon and Selenge rivers and will be utilized solar and wind power sources and will have capacities to export electricity to neighboring countries.

The recent years achievements and results are exposed fulfillment and successful implementation of those policies and goals.

I would like to state that the issues to build larger scale power plants in Western, Central and Gobi region were decided favorably, which were planned “Program of Unified Power Systems of Mongolia” which had been postponed due to financial and economical gape of the country.

For example, Government has made a decision to build a new thermal power plant with the installed of capacity 450MW in Ulaanbaatar under the PPP schemes and supported by National Security Council. SPC has announced a two-step international open tender to select owner of concessions, tender evaluation is in the final stage of selection and the power plant will be commenced in 2015 according to the plan. Therefore, it has been issued to construct power plants in Buuruljuut, Tsaidamnuur, and Chandganatalin Central region and each power plant will have a capacity of 600 MW and will build with private investment.

In Western region, the Taishir hydro power plant has commenced in September, 2011 and it was issued a license to the company, which is owning license of Khushuut coal mine, to construct thermal power plant with the capacity of 12 MW based on its coal reserve.

According to the Government resolution, New Asia Mining LLC was selected owner of concession to build thermal power plant with a installed capacity of 60MW in Telmen based on the Mogoingolcoal mine and the company is operating to complete the power plant in 2013.

It was announced an international open tender to select owner of concession for the extension of the Choibalsan Power Plant with a capacity of 100 MW in Eastern region under PPP schemes and owner will be selected in near future.

The Government has issued resolutions to build power plants in Tavantolgoi and Oyutolgoi in Gobi region, it was increased the installed capacity of the Dalanzadgad Power Plant with 3MW, and constructed and commenced a new thermal power plant with the installed capacity of 18 MW in UkhaaKhudag under private financing. There are constructing 220 kV high voltage electric transmission line between Mandalgobi and Tavantolgoi and 110 kV transmission line between Tavantolgoi and Dalanzadgad to resolve power supply for Gobi mining area and to improve electric supply in the region.

I would like reiterate again that the Energy sector development was evaluated in my speech on the last year’s International Conference “Mongolian Power – 2011” that larger power generation facilities, and major high voltage transmission lines were constructed newly to cover increasing demand of energy between 2011 and 2016, which was a start of establishment of new era for development of unified power system. It was proven our previous forecast with the achievements of energy sector in 2011 with that it will be a new era of energy sector, which is going to be in a new stage of technological development with advanced, efficient and environmentally friendly generation facilities under new techniques and technologies.

Economic capability of energy sector was improved and investment amount was increased thanks to the measures taken by the Government. For example, accumulated debts in the sector and liabilities of the state owned companies in many years is decreased with the allocated cross-sectoral subsidies from the state budget, increase of energy prices and tariffs, and with realization of the planned actions of implementation plan for 72th resolution of Mongolian Parliament. Total debts from Power Plants to coal mines were reached 19.45 billion tugrug in 2006 and it was 4.85 billion tugrug in 2011 which was decreased over 5 times in this period.

Further, it is planned to complete debts between coal mines and power plants in 2012. With the improvement of economic and financial capacity in the energy sector, interest of involvement and investment from the private sector is increasing. We are going to have the policy to support above mentioned actions.

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