37th Euroheat & Power Congress27-28 April 2015, Tallinn, Estonia

Organised by

DH in Mongolia –Energy efficient and cleaner heating in Ulaanbaatar

Erbar Agarjav,Ulaanbaatar District Heating Company, Mongolia

Country feature:

Land area 1,553,556 sq km, 19th rank in theworld

Population 3.0 million, 45% lives in Ulaanbaatar

Mongolia is ranked 15th in the world for coalresources.

Climate condition:

Mongolia is high elevated cold, and windy. It hasan extreme continental climate.

Getting to know Mongolia

Type of heat resource province’s centre

Combined heat and power station – 4

Heat plant – 5

Heat only boiler – 9

The winter is cold with Januaryaverages dropping as low as −35 °C. Avast front of cold, heavy, shallow aircomes in from Siberia.

Mongolia has 21 province, western provinces more cold during winter…

Mongolian district heating system OVERVIEW

Ulaanbaatar, the capital and also the largest city in Mongolia. And the most coldestcapital city in the world. Thus, heating is most important factor for living in comfort.

Average monthly temperatures

Getting to know Mongolian and district heating overview

Ulaanbaatar district heating system OVERVIEW

CHP – 2 est in 1961

CHP – 3 est in 1968

CHP – 4 est in 1983

Ulaanbaatar districyheating company

est in 1959

Public CHCWith 130 group substation

Private HCWith 40 group substations

Buildings withIndividual heat exchangers

Major investments starting from 1990s:Investor: ADB, WB, Korea, JICA, othersReceiver: CHPs, UBDHC, Public CHCs

Shareholders

Ministry of Energy (Share ratio : 41%)

Ministry of Finance (Share ratio : 20%)

State Property Committee (Share ratio : 39%)

Company introduction

1959 1969 1979 1989 1999 2009 2011 2012 2015

2369

189

258291

322 325 333 336

8 13 26 38 5392 93 93 110

1556

163

220 238230 232 240

226

Total Engineer and technician Field employees

Human resource & Organization

Human resource - Total 336

Organization - 12 Departments

25 Teams

Current corporate form 1990 as state

owned company

Company introduction

CHP-2

3,1 %

CHP-461,5 %

CHP-335,4 %

New HOB under construction supply East area of UB

8 boosting pump stations;

375,9 кm of heating network;

Connected heat load 1625 Gcal/h;

Sales & Outlook

Sales & Net IncomeHeat distribution, millon Gcal/year

[Unit : Million USD]

2013

2012

2011

2009

30.5

28.7

26.1

20.3

35.92014

4100

4200

4300

4400

4500

4600

4700

4800

4900

5000

5100

2010 2011 2012 2013 2014

4463.6

4637.1

4963.35067.4 5045.8

Company introduction

Nat

ion

al

dis

pat

chin

g ce

nte

r

CHPs

UBDHC

Private HC

Public CHC belongs to The housing and common public

service administration

Energy Law

Law on Concessions

Private HOB

Min

istr

y

of

ene

rgy

Regulatory framework and legislation

Energy regulatory commission

Go

vern

me

nt

Heat efficiency in Ulaanbaatardistrict heating sector

Before Heat efficiency project, 1996

The Power Plants and substations used fixed speed pumps, constant flow,

Over heat, no energy-saving, lack of regulating technique

Consumers paid according to the volume of buildings, no awareness aboutefficiency of heating system.

90%

DIRECT CONNECTED 90%

After project, DIRECT CONNECTED 20%

Installed mixing loops in

residential buildings

(14.1 million USD)

Installed heating units in

order to transfer to

indirect mode.

(13.6 million USD)

Renovated heating

equipment such as

pump and steam

pipes

(12.3 million USD)

Operational efficiencies

increased by 20%

Created heat resource capacity

150 Gcal/h in CHP3, 4

Economical results at the plants by implementing HEAT EFFICIENCY PROJECT

Saves 48 thousand Gcal/year through

separation

Saved 676 thousand USD from electricity

expense

Heat efficiency in Ulaanbaatardistrict heating sector

Contribution of Ger’s, CHP’s and HOB’s to UB air pollution

Heat efficiency in Ulaanbaatardistrict heating sector

3% 5% 8

%

0%

48

%

88

%

18

%

73

%

49

%

7%

73

%

23

%

PM10 S O 2 NO2 CO

Impact of heat resource’s to air pollution

CHP Ger area's Other

The GER areas include traditional GER and individual houses.

They use simple stoves for heating and cooking. There are 164,503

individual stoves fired coal and wood.

Heat efficiency in Ulaanbaatardistrict heating sector

Real site

Planned reconstruction

before re-planningafter re-planning

Clean energy through “GER area re-planning” project with PPP, 2015~2020, in 22 subarea

Under reconstruction

Selected District Heating Sector Challenges of Ulaanbaatar

Heat growth by Ulaanbaatar urban plan 2014~2030

16

Chingeltei districtHeat load : 77.3 Gcal/hBuildings : 143

Bayanzurkh districtHeat load : 186.8 Gcal/hBuildings: 413

Bayangol districtHeat load: 100.4 Gcal/hBuildings : 491

Khan-Uul districtHeat load : 580.2 Гкал/цBuildings : 1024

Songino khairhan districtHeat load: 197.4 Gcal/hBuildings: 395

Sukhbaatar districtHeat load : 76.0 Gcal/hBuildings : 139

TOTALHeat load: 1218 Gcal/hBuildings: 2605

31%

7%47%

15%

Breakdown of heat supply /sales/ UBDHC

Heat supply provided toCHC /unmetered/

Heat supply provided toprivate suppliers/metered/

Other heat supply/metered/

Other heat supply/unmetered/

Cities Generation Transportation Distribution

Ulaanbaatar 3 state-owned CHPs + HoB UBDHC 21 CHCs + private suppliers

Warsaw 1 private production company 1 transmission and distribution private company

Vilnius 1 integrated private Company

Kiev 1 integrated private Company

Almaty State-owned CHPs Municipal DH Company

Selected District Heating Sector Challenges of Ulaanbaatar

District heating institutional state comparison with European countries

On going project by PPP agreement

Plant : CHP#5

Client : Consortium of Newcom LLC, International

Power Plc”, Sojitz Corporation, Posco Energy

Capacity: Electricity 450 mWh, heat 504 mWh

Statement: Under PPA discussion

/Concession: Build-own-operate-transfer/

Plant name and type: “Amgalan” HOB

Client : China Energy Machinary Corporation

Capacity, heat : 300 MW

Statement: Under construction, complete in Oct.2015

/Open bidding/

Power generation

GIS based UBDH integration system /2015-2017/

Data server

Mobile GIS

Web GIS

Desktop GIS

Engineers and Field employee

GIS server

IT engineer

Informationready to

use

On going project

Our focus on future: Reduce heat loss

In 2014, transmission and distribution heat loss was 18.4%.

By 2030 we are focusing to reduce heat loss till 12 %

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

0

200000

400000

600000

800000

1000000

1200000

2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

Heat lossos (Gcal/year) Heat losses (%)

Evolution of the heat losses

Our focus on future:Peak load boiler or waste to energy plant

in high elevated and farthest area from CHP

Unit capacity: 70 ~ 80 Gcal/hFuel: Gas or coal

CHP4elev – 1266 meter

CHP3elev – 1278 meter

CHP2elev–1276 meter

Our focus on future: Thermo Technical Rehabilitation project

Reduce the demand of some 500 pre-cast panel apartment buildings that were built between 1965 and 2000.

1970s black and white

2015, LED and 3D

1970s Cast iron

2015Cast iron

2016-2018Panel radiator with

thermostat valve and heat allocator

Conclusion Extend corporation with leading district heating companies to shareexperience and know-how and bring out new technology such as peakload boiler, waste to energy and heat accumulator.

Well sequenced, comprehensive institutional reform and management./PPP, Leasing, privatization/

Support consumption covering tariffs motivate energy savings. Especially for residential inhabitants.

Expand DHN or develop individual heating network to reduce air pollution from ger areas with PPP

Develop Thermo Technical Rehabilitation project with PPP

THANK YOU for paying attention