Ulaanbaatar Thermal Power Plant No. 5

From Global Energy Monitor
This article is part of the CoalSwarm coverage of Mongolia and coal
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The Ulaanbaatar Thermal Power Plant No. 5 (also referred to as CHP-5) is a proposed 450-megawatt (MW) coal-fired combined heat and power station in Ulaanbataar, Mongolia.

Location

The map below shows the approximate location of the plant, on the east side of Ulaanbaatar.

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Background

The power station was proposed to be built on the eastern side of the city of Ulaanbataar. The cost was originally estimated at US$650 million. In a May 2008 briefing on energy developments in Mongolia, the State Secretary of the Ministry of Fuel and Energy stated that "the international bidding is planned to be announced in the near future."[1]

In a July 2010 presentation, a Mongolian government official stated that the current heating demand in Ulaanbaatar was only marginally more than demand. Electricity generation capacity was 690 MW while peak demand in 2010 reached 711 MW. He also explained that the small existing combined heat and power stations, the 21 MW CHP‐2 and the 48 MW CHP-3, are old and will be "out aged by 2015". He also projected that by 2020 heat demand would increase substantially and electricity demand would grow by 700 MW. "These factors show that there will shortage of heat and electricity capacity in [Ulaanbaatar] from 2011 and necessity of construction CHP‐5," he argued.[2]

For its part, the Asian Development Bank (ADB) noted that the proposal was most likely to be for a 300 MW owned and operated by a private operator. "The government will allocate the land and determine coal standards for the plant operations. Whether the prices at which the [Government of Mongolia] will buy the outputs would justify investment (estimated cost is 1 million USD per 1 MW of capacity109) remains to be seen," the ADB stated.[3]

In June 2014, POSCO Energy announced that it had "has won the license to build and run" CHP-5 which was described as a 450 MW plant. POSCO announced that construction of the project would commence in 2015 and that the build-operate-transfer contract would run for 25 years at which time the plant would be transferred to the Mongolian government free of charge.[4] The estimated cost was US$1.2 billion and the project was to be completed by 2017.[5]

In July 2015, Posco Energy of South Korea and partners Engie (formerly known as GDF Suez SA) of France, Sojitz Corp. of Japan, and Newcom Group of Mongolia signed a PPA with the Mongolia government for the plant. Under the agreement, the Engie-led group would pay for and build the plant, operate it for 25 years, sell its power to the central grid, and then transfer the facility to the government. The power station was planned to be operational by 2020.[6]

In October 2015, ADB released the draft Environmental and Social Impact Assessment (ESIA) for CHP-5. In April 2016, the companies submitted a revised edition of the ESIA to ADB.[7]

According to Bankwatch (April 2017), the project is on hold due to ongoing negotiations between the government and the sponsors on the tariffs for electricity and heating.[7]

According to the UB Post (February 28, 2018), the consortium for the project was disbanded.[8] China Energy Storage Network News reported that public opposition due to the poor air quality in Ulaanbaatar led to the suspension of the coal project in favor of clean energy projects.[9]

International consortium

POSCO Energy held a 30% stake in the project consortium. Other members of the joint venture were Engie, Sojitz Corporation, and Newcom.[4]

Funding

The project sponsors were seeking finance from the Asian Development Bank private sector arm, the Japanese Bank for International Cooperation (JBIC), and Nippon Export and Investment Insurance (NEXI).[7]

Website

CHP5 Energy For Tomorrow (former)

Project Details

  • Sponsor: Engie (30%), POSCO Energy (30%), Sojitz Corp. (30%), Newcom Group (10%)
  • Location: Ulaanbataar, Mongolia
  • Coordinates: 47.9259478, 107.0494938 (approximate)
  • Status: Shelved
  • Gross Capacity: 450 MW (Units 1-3: 150 MW)
  • Type: Subcritical
  • Projected in service:
  • Coal Type:
  • Coal Source:
  • Source of financing:

Articles and resources

References

  1. S. Tserenpurev, State Secretary of the Ministry of Fuel and Energy, "Energy Development in the South Gobi Region", World Bank, May 2008, page 9.
  2. Sh. Batrenchin, Senior Expert, Energy Policy Department, Ministry of Mineral Resources and Energy of Mongolia, "Energy Projects in Mongolia", Ministry of Mineral Resources and Energy of Mongolia, July 2010, page 3. (Pdf)
  3. "Private Sector Assessment for Mongolia", Asian Development Bank, April 2009, page 42.
  4. 4.0 4.1 "POSCO Energy Sets Foot in Mongolian Power Plant Business", KoreaTimes, June 23, 2014.
  5. "Mongolia, GDF Suez-led Group Sign 450MW Power Plant Agreement", Bloomberg, June 20, 2014.
  6. "Accord for $1.4 Billion Mongolia Power Plant Could Reduce Pollution", Bloomberg, July 29, 2015.
  7. 7.0 7.1 7.2 "Mongolia's energy sector", Bankwatch, April 15, 2017.
  8. "On the quest to energy independence", The UB Post, February 28, 2018.
  9. "蒙古国清洁能源发展迅速,火电项目已被彻底抛弃?", 中国储能网新闻中心, October 18, 2018.

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External resources

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