Amgalan Power Plant to provide heat and energy soon
The Cabinet resolved financing of 3.9 billion MNT necessary for test heating through the plant’s network. The PM instructed Chairman of Development Bank N.Munkhbat to immediately transfer the funds, and Chairman of Mongolian Customs B.Tsengel to expand the temporary customs procedures period and eliminate taxes for two trucks that will transport ash from the facility. Authorities of the Ministry of Roads and Transportation, Ministry of Finance, and Ministry of Energy were tasked with immediately obtaining substitute locomotives for coal transportation.
UB Mayor E.Bat-Uul was made responsible for taking measures to relocate more than ten households that are adjacent to the plant’s fence and directly interfere with the activities of the plant.
The Office of Media and Public Relations of the Cabinet reported that the PM emphasized the necessity for intensifying winter preparedness and allowing UB residents to comfortably overcome winter.
News.mn spoke with Minister of Energy D.Zorigt regarding the new thermal power plant.
How many complaints are delivered to the Energy Ministry regarding poor power and heat supply?
Due to increased population and settlement in UB, heat distribution is becoming inefficient. Many citizens and entities address the Ministry regarding this issue. We don’t have such options to provide heat everywhere, but commissioning the Amgalan plant will improve the situation, providing heat to households living in the eastern side of the city. The workload of the central heating system will decrease as well through the commissioning of the eastern heating network. Problems for households near Zaisan with heat supply deficiencies will be resolved.
How about the winter preparedness of the energy sector?
Winter preparedness and extensive maintenance work is in progress. Over 1,400 projects will be complete according to the data. Currently, winter preparedness is ongoing at 50 percent completion. Recently, changes were made to the energy tariffs, and the law on energy has been amended. Now it provides the opportunity for the central and eastern region power systems to work without any financial losses for the first time. I see that revenue can cover expenses now. While the western and southern regions will still work at a loss, it is because of imported energy from foreign countries.
In the future we will liberalize the tariffs and policies of the energy sector. On the other hand, we do believe that following a flexible policy for households with low income and low power consumption will mitigate the sector’s losses in the next few years. We are regulating price tariffs in order to lower inefficiency. We will save over 15 billion MNT in expenses, tightening our belt, and mitigating the sector’s losses by the end of this year.
The price of energy from Russia is increasing. Will the increase continue in the future?
Because we import energy from foreign countries, we negotiate on their proposed prices. Unfortunately the price is increasing every six months. However, we need to import energy in the next few years. We need to commission our own energy resources as soon as possible.
Rumors were going around about privatizing energy companies?
They won’t be fully privatized, but made public. They will be able to raise additional shares at the stock exchange and investors and individuals can buy shares. In other words, they will work as open joint stock companies.
Can citizens overcome winter without worry after the commissioning of the Amgalan plant?
We are ensuring necessary preparedness to provide consumers with reliable energy this winter.
Amgalan Thermal Power Plant
Government authorities visiting the plant
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