The National Dispatch Center, National Power Transmission Grid, and Baganuur Power Co. have signed a power and electricity trade agreement concerning the Baganuur 700 megawatt power plant, which will cost one billion USD for construction, on August 28.
By signing the trade agreement, the Mongolian government is agreeing to buy each kilowatt of power generated by the Baganuur Power Plant for seven cents for 25 years, when the power plant is transferred to the Mongolian government.
Minister of Energy D.Zorigt, Deputy Head U.Purevbaatar, and State Secretary of the Ministry of Energy D.Delgertsogt attended the agreement-signing ceremony.
The industrialization clause in the government’s 2012 to 2016 development policy states that Mongolia should work towards becoming an energy exporter and fulfill all of its domestic power needs. Based on this clause, the Baganuur high capacity power plant, to be fueled by the Choir-Nyalga coal mine, is being built. The power plant is expected to help stablize Mongolia’s cumulative power system, satisfy the needs of rising power consumption in the central region, and cut down on imported power.
The plant is located 130 kilometers from Ulaanbaatar, and has a built-in capacity of 700 megawatts. According to a power consumption study by the central energy system, a source to supply future consumption in the Baganuur-Choir region and in Dornogovi, Dundgovi and Khentii provinces is needed. They study’s energy production and consumption balances show that the region will face a 242 megawatt deficit starting from 2019, and a 660 megawatt deficit starting from 2022.
An industrial park, which will require 230 megawatts of power, is being planned in Sainshand, the capital of Dornogovi Province. The power sources in the region are required to work in support of each other and to provide safe and stable power performance as soon as possible.
According to 2013′s government decree 317, the Baganuur Power Plant was included on the governmental concession list for build-use-transfer projects. For the tender organized by the Ministry of Economic Development and Ministry of Energy, Chinese Nuclear Power Industry won and signed concession contracts with Baganuur Power Co. on April 1.