At a meeting of the Mongolian Parliament, held on 29^th May 2015, a Standing Committee obtained approval to discuss energy policy.  The discussion will be in two phases, namely 2015 – 2023 and 2023 – 2030. A study will be made of how to develop the energy sector for example, making lists of targets, eliminating losses and the transfer of state property to private sector. Member of Parliament L.Enkh-Amgalan asked Energy Minister D.Zorigt – the Government has many dream projects like Power Plant 5, the Tavan-Tolgoi Station, the Chargait-Hydro Electric Station and the Egiin Gol Hydro Electric Station that have not been completed. How do we build these stations into policy?  Oyu-Tolgoi receives electricity to the value of USD 100 million every year from China; we are losing huge opportunities! How do we implement such a big projects in the future under such conditions?  We have shale oil as well as renewable sources such as sun and wind. So why do we import USD 200 million of electrical power per year? Why we are not moving forward? Every energy company has a loss of MNT 60-70 billion every year. This field was always been closed and dependent on politics. Does this policy include all details about transferring the field into private sector?

Minister D.Zorigt replied – We will decrease the governmental concern in the energy sector. In order to do this, we will adopt a policy to transform some parts of private companies into open companies, and under public control. We will also improve the management. The East and Western Aimags have a shortage of electricity. Investment in this field has not always been sufficient.

Also it requires a good legal environment. We produce 1kW electricity for MNT 144 and sell it at MNT. 122. We, therefore, always lose MNT 22 for every 1kW.  Private companies will not invest in such a non-profitable sector. We have been tasked to eliminate the loss in the sector by the end of the year. Currently, all the documents (Egiin gol etc) have become ready for contract. Imported electricity accounts for 20% of total electricity.