Shivee Ovoo power station

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Shivee Ovoo power station (Шивээ овоогийн дулааны станц) is a power station in Shivee Ovoo mine, Govisumber, Mongolia with multiple units of varying statuses none of which are currently operating.

Location

Table 1: Project-level location details

Plant name	Location	Coordinates (WGS 84)
Shivee Ovoo power station	Shivee Ovoo mine, Govisumber, Mongolia	46.2333, 108.536768 (approximate)

The map below shows the approximate location of the power station.

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Project Details

Table 2: Unit-level details

Unit name	Status	Fuel(s)	Capacity (MW)	Technology	Start year	Retired year
Unit Proposal 1	shelved	coal - unknown	5280	unknown	–	–
Unit Proposal 2	announced	coal - unknown	200	unknown	–	–

Table 3: Unit-level ownership and operator details

Unit name	Owner
Unit Proposal 1	Erdenes Shivee Energy LLC [100.0%]
Unit Proposal 2	Erdenes Asset Management LLC [100.0%]

Project-level coal details

• Coal source(s): Shivee Ovoo mine

Background

On October 26, 2015, Erdenes Shivee Energy was established, with 50 percent owned by state-owned Erdenes Mongol and the other 50 percent owned by Aq Sora, a private entity. In a report, the company stated the "goal of Shivee Energy Complex Project of Energy Export is to build a large scale coal fired power plant in Mongolia and export the produced energy into China via transmission lines. The complex project consists of 3 main components. First, a coal mine with the capacity to extract 20 million tons of coal per year. Second, a power plant with an installed capacity of 5,280 MW. Third, renewable power plants with an installed capacity of 15 percent of the installed capacity of coal fired power plants. Lastly, transmission line with the capability to transmit 4,600 MW ±660kV UHV."

In November 2015, the Mongolia Ministry of Energy and China National Electric Equipment Corporation agreed to cooperative execution on the feasibility study for the Shivee Ovoo plant. Shandong Electric Power Engineering was carrying out the Feasibility Study for the Power Plant and Transmission Line. On April 13, 2016, a consultative meeting was held on the project’s preliminary feasibility studies and Mongolia-China energy cooperation. According to the Shandong International Contractors Association, feasibility studies were ongoing and funding was being sought. Initially, the project was planned to be implemented on Build Own Operate and Transfer (BOOT) basis, with an initial capacity of 270 MW and the possibility for expansion.

In June 2017, it was reported that a feasibility study on Mongolia’s proposed 5,280-megawatt Shivee project was being carried out by State Grid Corp. of China, and that talks with potential buyers would begin after the study's completion, planned for the end of 2017. It was stated the project would "export power as far as Japan."

Mongolia's 2018 communication to the UN Framework Convention on Climate Change only laid out plans for 276 MW of coal-fired capacity from Shivee Ovoo, with commissioning expected in 2026.

In October 2019, a preliminary feasibility study for the Shivee Energy complex project totaling 5,280 MW (8 x 660 MW) was submitted to the Mongolian government by the State Grid Corporation of China. A government working group was set up to evaluate the feasibility study, including representatives from the Ministry of Energy and Erdenes Mongol.

In July 2020, the Mongolian government put out a tender for a feasibility study for a 200 MW coal plant at the Shivee Ovoo coal deposit.

The project was described in a September 2020 study by the Nautilus Institute for Security and Sustainability.

According to March 2021 reporting, Erdenes Asset Management JSC ("Эрдэнэс ассет менежмент ҮЦК") was planning to build a 200 MW unit but details were limited.

A July 2021 posting on Erdenes Asset Management's website noted: "EAM is planning to establish Energy Fund to pull investment for building power plant to enhance the electricity supply to the Shivee ovoo's coal processing plant. It will increase the current capacity by 72% which will generate 200 MW of electricity per year."

On September 10, 2021, the CEO of Erdenes Mongol LLC held a meeting with Ambassador of the People’s Republic of China to Mongolia, Chai Wenrui. The Erdenes Mongol CEO "introduced the progress of the construction projects for the 5,280MW Shivee-Ovoo power plant and the 200MW power plant based at the Shivee-Ovoo coal deposit as well as the works being carried out to export coal to China, and requested support from the Ambassador." The Chinese Ambassador expressed that "he will support the Shivee-Ovoo-based energy export project by accelerating cooperation and serving as a 'bridge' to connect investors. He also expressed his confidence in further development of the energy sector of Mongolia as well as the creation of more new business opportunities as an experienced, large-scale company of China is cooperating in the 5,280MW power plant project."

(Shortly after, Chinese leader Xi Jinping said that China would not build new coal-fired power projects abroad, using his address at the United Nations General Assembly to add to pledges to deal with climate change.)

A March 2022 post by New Climate discussed the plans, describing that "the proposed 5.3 GW Shivee Ovoo power plant alone would cause more premature deaths and years of life lost by 2050 than all other proposed new coal plants together". Mongolia's 'Vision 2050' described that there are plans to increase energy independence in the short term and focus on export oriented energy development in the long term.

According to reports from April 2023, the CEO of Erdenes Mongolia announced that the company was to merge with several other companies, including "Erdenet Industry" SOE, "Darhan Metallurgical Industry" JSC, "Mongolrostsvetmet" SOE, and "Mongolian Oil Refinery" SOE. In the reorganization, Erdenes Mongolia would allegedly liquidate "inefficient subsidiaries and affiliates". The articles went on to report that (Google Translation), "...the 'Shive Energy' project to export electricity based on lignite will be liquidated," and the "Shivee-Ovoo Energy" complex project that aimed to build a 5,280 MW power plant "was stopped."

In September 2023, the Prime Minister reportedly referenced a 200 MW power plant as a potential project to reduce financial losses incurred by the Shivee-Ovoo JSC company, and instructed the company to conduct a feasibility study.

Negotiations with IM Power

In 2013, a memorandum of understanding related to the construction of the Shivee-Ovoo coal mine-based power plant was agreed to by Mongolian Erdenes MGL and UK's IM Power companies. On its website (undated), IM Power stated it was working in Mongolia on the construction of a 750 MW thermal power plant at the state-owned Shivee-Ovoo coal mine. However, as of 2017, the project was no longer on the IM website, although a February 2017 IM Power brochure still stated that "IM Power Mongolia LLC together with its partners (Project Group) has been working since March 2012 on the development of the power project for the construction of 3 x 250 MW power plant at Shivee-Ovoo coal mine."

On May 18, 2017, Prime Minister J. Erdenebat received the Managing Director of IM Power and the UK Ambassador to Mongolia, who presented their request to build a power plant based on the Shivee Ovoo coal deposit at an estimated cost of US$1.2 billion.

In September 2017, the CEO of Erdenes Mongol stated it was working with IM Power to create a coal reserve for the power station.

History

In a briefing on the project, a Mongolian government official explained that the project had been mooted after the November 2005 signing of a Memorandum of Understanding between the Ministry of Fuel and Energy of Mongolia and Development and Renovation Committee of China on cooperation in the fuel and energy sector. Subsequently, a pre-feasibility study had been undertaken by the State Grid Corporation of China on the establishment of the mine-mouth power station and an electricity transmission line to China. Following this, Mongolian and Chinese government officials negotiated terms of agreement for the project.

In 2008, the power station was proposed as a 3,600 MW power station with 3,000 MW destined for the Chinese market.

In a 2008 presentation, a government representative stated that "construction work will start in 2008, First block will operate in 2010, Project will be finished in 2015." However, the project did not progress. In a 2010 presentation, the Mongolian government identified the development of the $US4 billion Shivee Ovoo power station as one of its "top priorities in the midterm".

In 2009, the Mongolian Prime Minister Sanjaagiin Bayar visited the minesite to discuss the establishment of the Shivee Ovoo power station. In an interview, Bayar stated that "we exchanged our points of views with Development and Innovation Committee of People’s Republic of China regarding building the complex next to Shivee Ovoo coal mine. We agreed upon establishing it in late 2009. This is to establish the biggest ever power station with capacity of 20 thousand megawatt. It will supply China with energy. It is good for China and Mongolia. Also this power station is to provide Mongolia with electricity. This station would supply China, a stable and big market with high demand of electricity. It is not only the issue of Shivee Ovoo, we need to build power station to supply Xinjiang – Uyghur region of China, where there is big demand of energy. We have huge reserve next to this region. These projects will surely help Mongolia to strengthen its financial base and budget revenue. Also eastern part of Mongolia, namely, Dornod aimag has mining deposits with big reserve."

In 2010, the Mongolian government proposed that the power station would have approximately 4,000 MW slated for export to China and 300 MW to meet increasing domestic power demand, especially from the rapidly expanding mining sector.

In October 2015, it was reported that "Chinese professionals" suggested building a complex with 34 million tonnes per annum of coal production capacity and a 9,240 MWT coal-fired power plant. Note that MWT, or Megawatt Thermal, is a measure of the amount of heat input into a power plant. For a plant running at 42 percent efficiency, a 9,240 MWT coal plant would equate to 3,881 MW of electric capacity.

Project specifications for a 4,000 MW coal plant

A 4,000 MW power station would require approximately 20 million tonnes of coal per year, which would be supplied by a conveyor from the adjoining Shivee-Ovoo mine. It was also estimated that the power station would require "water access and supply facilities of 16 million cubic meter per year" and take 7 years to build. It would also necessitate the construction of a 1400 kilometre long 630 kV DC transmission line for 4000 MW from Shivee Ovoo to the North China Power Grid as well as a new 220 kV transmission line to carry 300MW to the Mongolian Central energy system.

Government's 2020-2024 Action Plan

In August 2020, the action plan included: "Commence the construction of the thermal power plant with 300-400 MW installed capacity based on coal mines in the central, eastern and Gobi regions."

Financing

In 2015, China promised to provide a US$1 billion loan for the construction of the Shivee-Ovoo power station. However, in 2019, IEEFA reported that this funding agreement still had not closed.

Ownership

In Mongolia's Fourteenth EITI Reconciliation Report (2019), a working group summarized the difference between various Erdenes companies:

• Erdenes Shivee Energy LLC: "To supply “Shivee Energy Complex Project for Energy Export” by coal based on strategically-important Shivee-Ovoo coal deposit." / "As a public private partnership, Erdenes Shivee Energy LLC was established by the agreement signed between Erdenes Mongol LLC and AqSora LLC on March 4, 2016. Pursuant to the minutes of GoM 64th meeting dated November 16, 2016, Erdenes Shivee Energy LLC has 1.2 billion tonnes of coal deposit and will provide coal supply of “the Shivee Energy Complex Project of Energy Export”, to be implemented based on Shivee-Ovoo strategic coal deposit. 50% of the company is owned by state-owned Erdenes Mongol LLC, and the remaining 50% is owned by private entity AqSora LLC, who also owns Shine Shivee LLC."

• Erdenes Asset Management LLC: "The Company operates to raise capital in the stock market, issue bonds, owns shares, trades and provide consulting services. The company was licensed for investment management activities by the FRC Chairman's Resolution No.296 dated November 25, 2019."

Articles and Resources

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.