|Objectives and Scope
The proposed ADB loan and PRGs will support construction and operation of a 463.5 megawatt (MW) of electricity and 587 MW thermal heat combined heat and power generation facility. The plant will be developed on a build-own-operate-transfer basis by a consortium, comprising ENGIE, Posco Energy, Sojitz and Newcom Group. Power generated by the Project will be sold to the National Power Transmission Grid pursuant to a Power Purchase Agreement, while heat generated by the Project will be sold to the Ulaanbaatar District Heating Grid in the form of hot water pursuant to a Heat Purchase Agreement.
The Project will be located on an approximate 45 hectares of land within the Khuliin Valley, approximately 16 kilometers southeast of Ulaanbaatar. The Project's design, construction and operation will incorporate international best practices. The plant is configured to have three identical CHP blocks, each consisting of a circulating fluidized bed (CFB) boiler which will be coupled with a steam turbine/generator unit. Hot water for distribution to the district heating network will be produced from the steam extracted from the turbines. The plant will be capable of generating 463.5 Megawatts (MW) of gross electricity in condensing mode through 3 x 154.5MWe generation units or 587MW of thermal energy for district heating and 426MWe of gross electricity whilst operating in combined heat and power mode. CFB boiler technology is widely utilized because of its high efficiency, high reliability, and relatively low SO2 and NOx emissions.
The Project will also require the development of associated facilities, including: (a) a 220kv transmission line, (b) district heating network, (c) additional railway sidings for coal transportation, (d) water supply line, (e) wastewater discharge pipeline, and (f) electricity substation. These associated facilities will be designed, constructed and operated by the Government.
|Linkage to Country/Regional Strategy
The Project is consistent with ADB's Country Partnership Strategy (CPS) for Mongolia (2012 2016) which aims to foster energy security by encouraging the provision of reliable, adequate, and affordable energy for inclusive growth in a socially, economically, and environmentally sustainable manner. To achieve these ends, the CPS specifically calls for the construction of a new, efficient CHP facility in Ulaanbaatar utilizing a PPP structure.
The Project is consistent with ADB's Energy Policy, which requires energy operations to be aligned with ADB's overall strategy, which emphasizes energy security, energy efficiency and universal access to energy.
ADB's Energy Policy also recognizes that to meet the electricity needs of the region, large capacity additions will be required for which coal-based generation will grow. However, ADB will encourage DMCs to adopt available cleaner technologies, such as fluidized bed combustion to help mitigate the adverse effects of coal-fired heat and power production.