Presentation made by the Minister of Energy D. Zorigt during the Conference Coal Mongolia 2015
The second day of Coal Mongolia 2015 opened with a presentation by the Minister of Energy, D. Zorigt titled “New Resources of Energy: Possibilities for Export”.
Here is an excerpt from the Minister’s presentation which touches on issues such as the current state of the energy sector in Mongolia, future perspectives, investment opportunities, changes in the legal environment regarding the energy sector, potential resources and concessions.
Distinguished Ladies and Gentlemen, Delegates
First of all, allow me to great you on behalf of the Ministry of Energy and myself.
The Coal Mongolia 2015 conference has been organized for the 5th time with support from the Government of Mongolia, mining.mn site and Erdes Mongol Corporation.
The energy sector of Mongolia consists of four independent renewable resources of diesel stations including Western region energy system, Altai and Uliastai energy system, Dornod region energy system, and Central energy system.
79.42 percent of the total energy consumption of Mongolia is produced domestically and 20.58 percent was imported. Production from Hydro power stations and renewable energy makes up 3 percent of the total amount of energy consumption.
Heating Power plants
Hydro power plants
Renewable power plants
While the energy sector of Mongolia operates with stability, reliability and continuously providing energy, in order to support the rapid development of the social and economic sector requires the country to resolve vital issues which have impacted the energy sector.
As the economy grows energy consumption also increases by approximately 7-10%/year.
Currently we are importing 20% of our consumed energy from Russia and China. It is vital for our future to be able to generate this power domestically as our energy requirements will be much greater in the future.
Solution Government of Mongolia has outlined objectives in order to meet these needs while maintaining the economic development and growth of Mongolia. The energy sector needs to increase its economic capabilities and adhere to the policy framework to ensure efficiency. In order to improve accountability and develop the legal environment regarding the energy sector we need to create a positive business environment which will attract investors. Changes to the Energy Law will be introduced to ensure this.
During his presentation, the Minister has outlined measures which have been taken from the Government side at the energy sector.
Key measures to be implemented within the energy sector:
The Government of Mongolia issued a decree regarding major development in the Energy sector:
-Organized discussion on the Baganuur Power Plant Concession Agreement which has the capacity of 700 MW; Granted rights to the Investment Department to draft an agreement with the conditions permitting the construction, operation and transfer.
-To finance Eg river hydro power plant with a soft loan from the Chinese Government.
-Approve the construction of the Khovd river hydro power plant to ensure energy resources for the Western regions of Mongolia
-Approve the construction of a thermal power plant based on the Tavan Tolgoi coal deposit with a capacity of 450 MW with $ 50 million from Chingis bond
-Additional power plants in the Western regions including Dornod, Baganuur and Shivee Ovoo are planning to be constructed from private investment.
-Power transmission lines and substations that connecting Tsaidam nuur, Buuruljuut and Chandgana power plants are scheduled to be constructed.
Upon conclusion of the presentation the Minister reflected on, future perspectives in further development of the energy sector in Mongolia.
The Minister has stressed that it is vital that the long term strategic objectives of the energy sector in Mongolia should be determined in conjunction with developments in the global energy sector, region and neighboring countries.
According to preliminary estimates until 2030, Western Asia will be a leader in the global energy sector.
At the end of his presentation, The Minister has wished success to participants for their future work as well as for the participation at the present conference.