The Mongolian government made significant progress on the Tavantolgoi Thermal Power Plant project during a Cabinet session held on April 9, 2025. Minister of Energy Choijilsuren Battogtokh provided a detailed update on the project’s status. The Tavantolgoi Thermal Power Plant is a major component of Mongolia’s 2024–2028 Action Plan and New Recovery Policy. It is designed to improve the domestic electricity supply for the Oyu Tolgoi and Tavantolgoi mining deposits. This will also support other important mining projects in the southern region of Mongolia.
The government has prioritized the construction of a 450 MW thermal power plant at Tavantolgoi. The project’s main aim is to provide a reliable and stable electricity supply to the rapidly developing mining industry. These efforts are vital as the country aims to meet the growing energy demands of large-scale mining projects.
The process for selecting a contractor for the construction and installation of the thermal power plant began in June 2023. However, the tender faced significant delays due to legal challenges. Several participants in the tender filed lawsuits, leading to a prolonged dispute resolution process. The legal battles stretched on until December 2024, when the Supreme Court of Mongolia’s Supervisory Power ruled in favor of the government. The ruling dismissed all the claims made by the plaintiffs, clearing the way for the next steps in the project.
Following the court’s decision, government officials were instructed to move forward with the project while ensuring compliance with the relevant legal and regulatory frameworks. The court’s ruling has now allowed the tender process to resume. Officials have been given the green light to continue selecting the project’s contractor and financier.
The Tavantolgoi Thermal Power Plant project is a significant step for Mongolia. It demonstrates the government’s commitment to enhancing the country’s energy infrastructure. By providing reliable electricity to key mining projects like Oyu Tolgoi and Tavantolgoi, the plant will support Mongolia’s economic growth. It will also help reduce the country’s dependence on imported energy sources. This aligns with the broader goals of the government’s New Recovery Policy.
In the past few years, Mongolia’s mining sector has seen tremendous growth. Projects like Oyu Tolgoi and Tavantolgoi have become crucial to the economy. As such, ensuring a stable and sustainable power supply is essential for the continued success of these ventures. The new thermal power plant will directly address these needs. It will also create more job opportunities and boost the local economy by supporting the energy needs of the southern region.
Despite the legal challenges, the project has now overcome its initial hurdles. With the legal disputes resolved, government officials are focused on the next phase. The primary goal is to ensure that the selected contractor can begin construction as soon as possible. Given the strategic importance of the project, officials are working diligently to make sure it proceeds smoothly.
Minister Choijilsuren Battogtokh has emphasized the significance of this project for Mongolia’s long-term development. The construction of the Tavantolgoi Thermal Power Plant will lay the foundation for a more self-sufficient energy future. It will also be a key enabler of further economic progress by ensuring the availability of electricity to power mining operations.
Mongolia’s government has made it clear that it will continue to prioritize the successful completion of this power plant. The progress of the Tavantolgoi Thermal Power Plant project is a clear indication of the government’s determination to improve the country’s energy infrastructure. As more energy is needed for mining operations in the southern regions, this project will play an essential role in meeting these needs.
The resolution of the legal issues related to the contractor selection is a positive development for the country’s energy future. The government is now in a position to focus on the next steps in the construction process. The progress of the Tavantolgoi Thermal Power Plant project is an encouraging sign for Mongolia’s growth and prosperity.
The successful completion of the plant will also position Mongolia as a more energy-independent nation. As the country continues to develop its energy sector, the Tavantolgoi Thermal Power Plant will be a key asset for years to come. This project not only addresses immediate energy needs but also lays the groundwork for future growth and stability in the energy sector.
