Ulaanbaatar, October 6, 2025 /MONTSAME/. As part of Ulaanbaatar’s 24 mega projects, a Combined Heat and Power (CHP) Plant No. 5 with a capacity of 340 Gcal/H of heat and 300 MW of electricity will be built in the 20th khoroo of Bayangol District under a public-private partnership.

“Mitime International” LLC has been selected as the private partner to implement the project and has signed agreements with a legal consultancy firm.

Once operational, CHP-5 will help stabilize electricity prices, support domestic production growth, create jobs, and contribute to sustainable economic development. The plant will supply heat to areas including Tavan Shar, 21st khoroolol, Khilchin residential area, Bayankhoshuu, and the 3rd, 4th, and 1st khoroolols. It will also improve energy infrastructure, modernize transmission and distribution facilities, enhance the reliability of supply, and expand grid capacity. By introducing modern smart energy technologies, the project is expected to accelerate technological innovation in the sector and promote the development of clean energy.

As Ulaanbaatar’s population continues to grow, electricity demand has been rising. The Capital city’s thermal power plants currently have an installed capacity of 1,549 megawatts, but peak demand reaches 1,636 megawatts. This exceeds domestic generation capacity by 315 megawatts, making it necessary to import electricity at high cost.

Ulaanbaatar, November 25, 2025 /MONTSAME/. Ulaanbaatar has launched its first strategic energy project under a public-private partnership, the Thermal Power Plant No.5, designed to deliver 300 megawatts (MW) of electricity and 340 gigacalories (Gcal) of heat.

According to the Office of the Governor of Ulaanbaatar City, the plant will operate with two 150 MW units and employ modern circulating fluidized bed (CFB) combustion technology. Once commissioned, it is expected to generate 2.2 billion kilowatt-hours (kWh) of electricity and 4.8 million gigajoules (GJ) of heat annually, significantly boosting the capital’s energy supply.

Equipped with advanced flue gas filtration, the plant is engineered to reduce fly ash emissions by up to 99.9 percent, positioning it among the most environmentally compliant projects in Mongolia’s energy sector. The use of low-sulfur, high-quality brown coal from Shivee-Ovoo, Baganuur, and Buuruljuut will further enhance combustion efficiency and lower pollutant emissions compared to existing facilities.

By adopting rotary fluidized combustion furnaces, emissions of sulfur oxides (SOx) and nitrogen oxides (NOx) will meet regulatory standards and align with international benchmarks. Beyond strengthening Ulaanbaatar’s energy security, the project will expand central heating coverage, ease the exhaust burden of ger districts, and reduce reliance on raw coal. This transition is expected to cut seasonal smoke pollution, one of Ulaanbaatar’s most pressing public health concerns.

The CHP-5 project reached a major milestone this November with the signing of its implementation agreement. Construction is scheduled to begin in spring 2026, marking the start of Mongolia’s first strategic energy project under a public-private partnership. Once underway, the plant is expected to advance on a fast-track basis, with completion targeted for 2028 within the planned timeframe. By integrating eco-efficient technologies, CHP-5 is positioned as a long-term solution to improve air quality while reinforcing Ulaanbaatar’s energy infrastructure and supply reliability.

As part of 24 major development projects to develop Ulaanbaatar, Thermal Power Plant No. 5 (TPP-5) is planned for construction in the 20th sub-district of Bayangol District. The plant will have an installed capacity of 340 Gcal for heating and 300 MW for electricity generation. The project’s total estimated cost is USD 658 million, with 80 percent of the funding expected from the private sector and the remaining 20 percent provided by the government.

In this regard, the Governor's Office of the Capital City of Ulaanbaatar invites qualified Private Sector Partners to submit Applications for the selection process for entering into a Public-Private Partnership (PPP) agreement for the design, financing, construction, operation, and transfer of the Thermal Power Plant-5 Project. The selection will take place in two phases: an initial prequalification stage followed by a competitive bidding round.

To qualify, private sector partners must have successfully completed the construction of at least one lignite-fired thermal power plant within the past five years. Additionally, applicants must meet the eligibility criteria specified in Article 27 of the Law on Public-Private Partnership.

Proposals for the preliminary selection stage will be accepted until 10:00 a.m. on June 25, 2025.

The "Toson" Thermal Power Plant, Mongolia’s first privately owned facility of its kind, connects to the central power grid in Tosontsengel soum, Zavkhan province, with an initial capacity of 9 MW.

Launched in 2022 by Jem Group and Toson Energy with their own funds, the plant uses coal deposits from Mogoin Gol and Ovoot to supply electricity to the local population.|

The 22 MW thermal power plant serves as a reliable energy source for Zavkhan, Gobi-Altai, and Khuvsgul aimags. Operating under a Power Purchase Agreement, the plant strengthens the "Altai-Uliastai" energy system and boosts energy independence in Mongolia’s western region.