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Mongolia to be energy self-sufficient by 2014, says minister

Published Monday April 29, 2013

By B.Khash-Erdene

Minister of Energy M.Sonompil said last week that the ministry is aiming to make Mongolia energy self sufficient by next year and plans to expand energy production further to eventually become an energy exporter. The minister’s comments came during a regular update on the ministry’s current projects and plans. The updates are part of the government’s actions to increase transparency.

Minister M.Sonompil noted that the government has already put in place measures to expand Thermal Power Plant 4 (TPP4) by up to 100 megawatts and to expand TPP 3 by up to 50 megawatts, and said that projects to establish the Amgalan Power Plant and the 450 megawatt TPP 5 will begin this year. He also noted that the Salkhit Wind Farm, with capacity of up to 200 megawatts, will commence operations this year.

The minister also said that, as reported earlier this month, the government is planning to build a 450 megawatt power plant adjacent to the giant Tavan Tolgoi coal mine in southern Mongolia. The plant will power both the Tavan Tolgoi project as well as the Oyu Tolgoi copper and gold project. The power plant is expected to cost over 500 million USD, with the initial funding of 50 million USD allocated from the proceeds of the government’s Chinggis Bonds.

The ministry is also planning to expand Western Region Power Plant, Shuren Hydroelectric Power Station, Baganoor Power Plant, and Chailablsan Power Plants, and will construct another new power plant, the Shivee Ovoo Power Plant. The ministry will also continue the Renewable Energy and Rural Electricity Access Program, which supplies portable off-grid solar-powered electricity supply systems for individual gers in remote areas.

Miniser M.Sonompil also reported that the ministry is working to improve the legal framework related to energy cost-cutting bills and the energy master plan, and is planning to amend the renewable energy law.

In 2012, 91.4 percent of total electricity produced came from Mongolia’s thermal power plants, 1.2 percent from hydroelectric generators, 0.48 percent from diesel stations, and 0.1 percent from renewable resouces (solar and wind).

Mongolia currently produces 813 megawatts of electricity domestically but demand is around 850 megawatts. The country imports electricity to meet the gap between supply and demand. Imports made up 7.6 percent of domestic consumption in 2012.

Experts estimate that domestic energy demand is set to increase to 1,500 megawatts by 2020 and 3,000 megawatt by 2025. The International Monetary Fund last year reportedly projected a deficit of over 600 megawatts by 2016.

Short URL: http://ubpost.mongolnews.mn/?p=3824

Posted by on Apr 29 2013. Filed under Business & Economics, Domestic. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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