Mongolia’s expected power requirements until 2015 Paulius Kuncinas, Ulaanbaatar, May 24th, 2012 Opportunities for upgrading Mongolia’s existing power plants Plans for introducing new power plants within the near future. Introducing new technologies to Mongolian power plants e.g. air cooled power plants – Will these be to the country’s advantage?

1. Mongolia’s expected power requirements until 2015
New Approach
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2. Paulius Kuncinas
Regional Editor, Asia
Oxford Business Group
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3. Key Themes:
•Opportunities for upgrading Mongolia’s existing power plants
•Plans for introducing new power plants within the near future
•Introducing new technologies to Mongolian power plants
•Air cooled power plants
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4.  Main Sources of Demand:
 Rapid Urbanization - Ulaanbaatar
 Mining Sector – Oyu Tolgoy
 New Industries
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5.  80% TPPs, 12% imports, 2.5%
hydro
 Soviet Design
 State Dominated
 CES 95% of the 814-MW
 Last Greenfield in 1991
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6. Available Capacity (MW)
TPP2 17.6
 814MW vs 614.3 available
TPP3 105.1
TPP4 432
 Unerpowered & Underinvested
Darkhan 38.6
 Last Investment in 1991 Erdenet 21
Total 614.3
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7.  CES - 95% of 814-MW
 CES - 220KV line to Russia
 100% Coal-fired
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8.  TPPs account for 85% of domestic consumption of coal
 Tariffs set below market price
 Tariff for sale to the TPPs is $14.04 vs $ 17 production cost
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9.  Upgrading Existing TPPs
 New TPPs
 Renewables
 Nuclear
 Energy Efficiency
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10.  Open Minded Policy Makers
 Focus on Clean Coal
 Air Cooling & Water Management
 Energy Efficiency
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11.  Establish supply to every settlement
 220MW Hydro on the Egiin River
 TPP 5, w 450-MW electricity and
587-MW thermal capacity
 Nuclear remains an option
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12.  Technological Leapfrog
 Engage Policy Makers
 Superior Investment Opportunity
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13. THANK YOU!
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