Mongolia Signs Power Purchase Agreements for Battery Energy Storage Systems and Solar Power Projects: Several Chinese Enterprises Win Bids as Partners
Montsame, Ulaanbaatar, July 3 — For the first time in Mongolia’s renewable energy sector, a competitive bidding mechanism was adopted by the government, officially announcing the list of winning companies on June 18. On July 1, the Mongolian National Electricity Dispatch Center formally signed power purchase agreements with the winning enterprises, under which solar power stations and battery energy storage systems will be constructed across five provinces and regions nationwide.
On July 1, Prime Minister N. Uchirbat presented certificates to experts, engineers, and policy-making teams involved in the project implementation. The project will develop solar power stations with a total installed capacity of 220 megawatts across five provinces, along with a battery energy storage system of 135 megawatts/440 megawatt-hours. This not only lays a solid foundation for the successful execution of the project but also sets a precedent for establishing fair competition and attracting investment in Mongolia’s energy industry.
In his speech, Prime Minister N. Uchirbat stated, “This achievement fully demonstrates that major projects—long discussed yet delayed, planned yet stalled, urgently needed yet unaddressed—can indeed be effectively implemented. In just over 80 days since this government took office, we have been fully committed to advancing reforms in the energy sector, marking the official beginning of a new chapter in Mongolia’s energy transition. This clearly reflects how Mongolia’s market is increasingly attracting international investors and indicates growing confidence from private enterprises in the Mongolian government. A new mechanism for cooperation and mutual trust is taking shape in the energy sector. With the establishment of a competitive mechanism, the energy industry will attract more investment, and electricity pricing mechanisms will become more scientific and efficient. Today’s open tender is one of the key outcomes of the government’s ‘unlocking’ reform policies, reflecting our firm determination to continuously reduce administrative barriers, optimize approval procedures, allocate resources rationally, and stimulate economic vitality.”
The winning enterprises stated they would ensure construction according to high standards and plan to complete the facilities and bring them into operation before the winter peak electricity demand period this year, thereby securing Mongolia’s power supply.
It is reported that this round of renewable energy project tenders attracted 115 domestic and foreign enterprises to participate. After qualification review, 19 enterprises entered the bidding phase. The auction adopted the "lowest price wins" principle, where bidders competed by lowering their grid-connected electricity prices rather than increasing their bids. Ultimately, five enterprises were awarded contracts. The winning companies are as follows:
Khentii Province, Khulun County: Construction of a 20 MW solar power station and a 15 MW/40 MWh battery energy storage system. The winning company is RJE Mongolia LLC in collaboration with Runxin Capital Holdings LLC.
Hovsgol Province, Khar-Usnii Huree County: Construction of a 50 MW solar power station and a 30 MW/100 MWh battery energy storage system. The winning company is Monhorus International Company.
Central Gobi Province, Sainshand County: Construction of a 50 MW solar power station and a 30 MW/100 MWh battery energy storage system. The winning company is Smart Natural Energy Company.
Bulgan Province, Orkhon County: Construction of a 50 MW solar power station connected to the Bulgan substation and a 30 MW/100 MWh battery energy storage system. The winning companies are Magnus Centurion Construction and Zhejiang Zhengtai New Energy Development Co., Ltd.
Govi-Sumber Province, Sumber County: Construction of a 50 MW solar power station connected to the Chor substation and a 30 MW/100 MWh battery energy storage system. The winning company is Alkhana Trade LLC.
Original article: toutiao.com/article/1869696786501632/
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