The Government has decided to increase the current capacity of the heat and power plant #4 by installing a 100 MW turbine generator. According to the decisions made at the Cabinet meeting held on 20th October 2012, Energy Minister M.Sonompil and Economic Development Minister N.Batbayar were tasked to finance the project from Development Bank, and complete it by June 2014. The total project cost is USD 70 Million, which can be recovered within 7-8 years of operation.
This decision was based on the fact that the Central Region’s demand for electricity has been growing 5-7% in 2005-2011, and that the current capacity will be not be able to meet the demand in 2014-2015 even if the government continues importing energy from the Russian Federation. It was also considered that the 5th power plant, if its construction starts in 2013, would not be operational until 2016, leaving a gap for electricity need.