The Cabinet of Mongolia has taken decisive action to improve the management of Western Region energy companies. Recently, it merged nine state-owned energy companies and eight branches into four newly formed entities. Consequently, this consolidation aims to increase efficiency and simplify operations throughout the energy sector in the western region.
First, Uvs Electricity Distribution Network LLC, Khovd Electricity Distribution Network LLC, Durgun Hydropower Plant LLC, and Myangat Solar Power Plant combined to form the Western Region Electricity Distribution Network State-Owned Joint Stock Company (JSC). As a result, this new company can better coordinate resources, enhance electricity distribution, and reduce redundant efforts in the area.
Next, the distribution branches of Altai-Uliastai Energy System merged into a single entity called Altai-Uliastai Electricity Distribution Network State-Owned JSC. This merger streamlines management, reduces operational overlaps, and strengthens service delivery across the Altai and Uliastai regions.
Moreover, several hydropower and solar plants united to create a new green energy company. Taishir-Guulin Hydropower Plant LLC, Bogdyn Gol Hydropower Plant LLC, Tosontsengel Hydropower Plant LLC, Serven Solar Power Plant, Murun Solar Power Plant, Borkh Solar Power Plant, and Khungui-Galuutai Hydropower Plant now operate as Taishir Green Energy State-Owned JSC. This company focuses on expanding renewable energy production throughout the western region and supports Mongolia’s clean energy goals.
In addition, the government passed a resolution to restructure the governance of state-owned enterprises. This resolution targets cutting costs, improving efficiency, and eliminating gaps and overlaps within the energy sector. Under this plan, the Western Region Energy System State-Owned JSC and Altai-Uliastai Energy System State-Owned JSC merged into the National Electricity Transmission Network State-Owned JSC. Consequently, this merger strengthens Mongolia’s national electricity grid and enhances the reliability of electricity service delivery.
Overall, the consolidation of Western Region energy companies represents a significant reform to optimize Mongolia’s energy sector. The government expects this restructuring to enable smoother operations, better coordination, and increased reliability in electricity distribution. Furthermore, this reform aligns with Mongolia’s broader objectives to develop sustainable energy sources and improve public enterprise governance.
By reducing fragmentation and improving management, Western Region energy companies will better meet the region’s growing energy demands. Therefore, this move marks an important step toward a more efficient and sustainable energy future.
