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Prime Minister Ch.Saikhanbileg: update on implementation of activities in energy sector

Ch.Saikhanbileg, PM provided an update on activities carried by the GOM in energy sector at the plenary session of the Parliament on January 14, 2016.

In 2015 the GOM focused on the infrastructure, the milestone of economic development, specifically on the development and reformation of the energy sector. We are carrying package of activities in 6 areas to ensure supply of reliable and affordable energy to the general public and private sector, including:

Advancing the legal environment of the energy sector. The Parliament had passed 3 laws on energy in 2015 that shall guarantee development of energy standards to each and every sector. State policy on Energy, passed by the Parliament in 2015 is the main platform to implement the mid and long-term programmes of energy sector, including the mid-term project on National energy framework which has been drafted. The GOM resolved to cut down the night time electricity prices for 50% for consumers of central region ger districts in order to reduce air pollution and encourage use of electrical heaters. As of today around 120 thousand households consume electricity at discounted price. In December of 2015 MNT 1.5 billion discount for 17.8 m kWt was provided.  
Development of energy sector. Preparation for implementation of projects such as 700 mW capacity Baganuur power plant, Power station No 5, 60 mW capacity power plant for eastern region, 100 mW power plant of Dornod region, Buuruljuur power station, 450 mW Tavantolgoi power plant are under way that shall be creating new sources of the electricity. The GOM had resolved development of the Eg river hydropower station, expansion of Erdenet heating and power plant capacity by 35 mW, construction of 330 kW lines and substation to transmit electricity en route Ulaanbaatar-Mandalgovi with loan investment from Government of China and heating source, heating pipeline projects in Arkhangai, Bayankhongor, Gobi-Altai, Govisumber, Dundgovi, Zavkhan, Uvurkhangai, Khentii, Tuv aimags at loan investment from South Korea. Total of 1,436.7 kW/h of power was imported, 78% of which from China and 22% from Russia. For the first time in last 10 years the energy sector performed well without financial loss due to the pricing regulations in this sector
Privatization of the energy sector. In accordance with the list of legal entities, both state owned and state participation to be privatized and restructured in 2015-2016, the GOM issued additional shares for power stations No 2, 3 and 4 as well as power and heating stations of Erdenet and Darkhan. The income from the trade of the shares at the Mongolian stock exchange is and shall be invested in replacement and renovation of equipment and technology.
Foreign cooperation in energy sector. During the state visit paid by the Ts.Elbegdorj, President of Mongolia to China sides had signed the MOU on US$1.0 b loan for development of feasibility study on expansion of Shivee Ovoo power station and expansion of the transmission lines. The GOM resolves to spend 85% of the loan funds for the Eg river hydropower station, Ulaanbaatar-Mandalgovi transmission lines, expansion of Erdenet power station. Mongolia is participatring in the global program on development of renewable energy in low income countries of the Global climate investment fund which shall provide US$ 30 m grant.
For 2016, we are planning to start the MEGA projects aiming to provide affordable energy. We start the new year with new objectives to ensure the independence of energy sector, construct significant energy sources, to get liberated from energy imports. 

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Монгол эхийг унших бол энд дарна уу