Construction of the strategically significant Thermal Power Plant No.5 (TPP-5), aimed at meeting Ulaanbaatar’s growing electricity and heating demand, has officially begun.

The plant will be built on the ash pond site of TPP-2 in the 20th khoroo of Bayangol District and will have a capacity of 300 MW of electricity and 340 Gcal/h of heat.

Mayor of Ulaanbaatar Nyambaatar Khishgee noted that Ulaanbaatar city issued its first domestic bond in 2024, enabling the commissioning of a 300 MW power plant in Buuruljuut and a 50 MW battery energy storage facility in Baganuur. He stated that TPP-5 will be developed through a public-private partnership and is scheduled for completion in 2028. Several additional projects are also planned this year, including new power plants at Dambadarjaa and Denjiin Myanga, gas-fired facilities, and waste-to-energy projects. Furthermore, efforts will continue to reduce air pollution and traffic congestion and to improve living conditions.

Once operational, TPP-5 is expected to supply electricity to up to 100,000 households and provide heating for more than 40,000 households, particularly in densely populated areas such as Tavanshar, Bayankhoshuu, and the 3rd and 4th microdistricts.

The total investment for the project is estimated at USD 658.6 million, with 80% to be financed by private partners and 20% by the public sector. To support financing, the city has issued bonds worth MNT 200 billion in the domestic market.

This will be the first high-capacity combined heat and power plant built in Mongolia in over four decades, since the commissioning of Thermal Power Plant No.4 in 1983. The new plant will utilize domestic coal resources while incorporating modern, efficient, and environmentally friendly technologies designed to avoid increasing air pollution.

Published Date:2026-05-04