Prime Minister Uchral Nyam-Osor visited the construction site of the Erdeneburen Hydropower Plant (HPP) on the Khovd River in Erdeneburen soum, Khovd aimag, on October 18 to review the progress of the project.

The Prime Minister emphasized that the project will play a vital role in efficiently integrating other renewable energy sources into the power grid and strengthening electricity supply in the western region. He stressed the need for all stakeholders to work intensively together to ensure the plant is commissioned on schedule. He also instructed the relevant parties to improve coordination, promptly resolve outstanding issues and ensure tangible progress in project implementation.

Prime Minister Uchral highlighted that the energy sector is a fundamental pillar of the country’s economic independence and national security, describing the Erdeneburen Hydropower Plant as a project of strategic and historic significance. He also noted that, during an official visit to Russia by Minister of Energy Naidalaa Badrakh, an agreement had been reached on securing up to 55 MW of electricity for the western regional power system.

The project is expected to increase domestic electricity generation, reduce dependence on imports and strengthen Mongolia’s energy independence.

According to the Ministry of Energy, the project has a total cost of USD 266.4 million and is being financed through a concessional loan from the Government of China. The plant will have an installed capacity of 90 MW and is scheduled to begin operations in 2030. It will comprise four generating units, each with a capacity of 22.5 MW.

Construction began in March this year, and overall progress has reached 40 percent. A total of 225 employees of the contractor and 250 local residents are working at the project site. Preparatory infrastructure has been completed, including 49.8 kilometers of access roads, two bridges over the Khovd River, a workers’ camp, a concrete batching plant, a gravel processing plant, a laboratory, warehouses and a repair workshop.

Electricity consumption in the western region is projected to reach 352.6 million kWh this year, of which 294.9 million kWh is being imported from Russia and China. Once operational, the Erdeneburen Hydropower Plant is expected to generate an average of 366.8 million kWh of electricity annually. This will increase domestic renewable energy generation, reduce reliance on imports and strengthen regional energy security.

The project is also expected to create 800–1,000 temporary jobs during construction and 60–80 permanent jobs once the plant becomes operational. In addition, the reservoir is expected to create opportunities for developing tourism and irrigated agriculture.

Approximately 30,000 hectares of land have been designated for special state use for the project. The reservoir area will cover parts of Bayannuur soum in Bayan-Ulgii aimag, Umnugobi soum in Uvs aimag, and Erdeneburen and Myangad soums in Khovd aimag.

The Erdeneburen Hydropower Plant is a strategically important infrastructure project that will improve the reliability of electricity supply in western Mongolia, reduce dependence on imported power and expand the country’s renewable energy generation capacity.

Published Date:2026-10-19