The capital city faces a growing energy shortfall: peak demand could reach 3,328 MW by 2030, creating a potential 55% capacity deficit unless new generation is added. To strengthen supply, improve reliability and reduce air pollution, the Thermal Power Plant V project is planned to launch in 2026.
Last week the City Council authorized the Governor of Ulaanbaatar to select the contractor for the plant. It will be the first public–private partnership (PPP) power plant in Mongolia, to be built in 20th khoroo of Bayangol District. The facility is designed to produce 300 MW of electricity and 340 Gcal of heat.
About 90% of the electricity generated will be fed into the central grid, helping to stabilize supply across the city. The plant will also enable district heating for parts of the western capital, Tavan Shar, the 21st sub-district, Khilchin town, Bayankhoshuu, and parts of the 3rd, 4th and 1st sub-districts, supplying heat to roughly 40,000 households and creating conditions for reliable energy for approximately 100,000 households and businesses.
City officials say the project is crucial for stabilizing prices and ensuring affordable energy as Ulaanbaatar continues to urbanize rapidly. Strengthening the energy supply is presented as a fundamental requirement for infrastructure development, the investment climate, and overall quality of life in the capital.

Published Date:2025-10-21