Mongolian Ministries Plan to Diversify Power Industries

Last week massive plans for extensive coal and hydroelectric power plants were confirmed by senior government officials, as well as the potential for increasing both wind and solar power capacities. Mongolia, which still imports power from Russia for three western provinces, is trying to produce all of its own energy, as well as export electricity to China and Russia.

“Currently our central grid system is 100 percent coal run,” said T. Tserenpurev, State Secretary of the Ministry of Fuel and Energy, in an interview Thursday.

“But we’re seriously looking into the world trends of renewable energy. About 3 percent of the power in our country comes from hydroelectric generators and about 2 percent is solar. Also, an American company is looking at building a 15 Mw wind park 50km from Ulaanbaatar.”

Mongolia uses between 260-500 Mw a day with peak hour use rising above Mongolia’s capacity, forcing the importation of electricity from Russia. However, if current government plans can be financed, Mongolia would turn the tables, selling energy to its imposing neighbors.

However Mongolia's rich coal deposits may win over the more expensive and less power generating renewable energy plants.

“We are going to build at least three coal burning power plants with a total generation capacity of 10,000-15,000 Mw,” stated Minister of Industry and Trade B. Jargalsaikhan, at an investors’ conference on Friday.

The plans include a power plant at the coal rich Baganuur district, just over 100km from Ulaanbaatar, as well as giant plants in Mongolia’s Gobi near the Oyu Tolgoi and Tavan Tolgoi deposits, and a final one in Dornogovi province near the copper-molybdenum Tsagaan Suvraga deposit.

Yet not all politicians feel that increasing dependency on coal is the right step for Mongolia.

“The Ministry of Industry and Trade has introduced plans to tender the coal plants, but we want to focus on renewable energy generation. Our project of 100,000 lighted gers is working on solar power for the countryside, and our three hydro plants would create over 250 Mw,” said Tserenpurev. “But we are still looking for funding for the hydro projects.”
 
Ts. Davaadorj, Director of the Department of Geology, Mining and Heavy Industry, said that potential investors for the coal projects have already been found, and signed memorandums with the Mongolian government.

“China’s Shenhua Group, the State Grid Corporation of China (SGCC) and the Chinese LuNeng Group, have all held talks with the government about these plants,” Davaadorj said between presentations at a conference on foreign investment in Mongolia.
 

Source: MonInfo at www.moninfo.org/content/view/247/5/lang,en/
Image copyright Luke Diselhorst

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