Within the State Policy on energy, the Parliament and Government issued policy documents in 2010-2018 such as ‘Document of the State Policy on Energy,’ ‘Document to develop Southern Gobi infrastructure’ and ‘Construction of Tavan Tolgoi Power Plant,’ in which a power plant was reflected to be built through public and private partnership and complete in 2023. Within this frame, national companies introduced their projects to build the power plant at their own initiative. MCS Group formulated a project to establish Tavan Tolgoi Power Plant to be relied on Oyu Tolgoi and Tavan Tolgoi deposits. Newcom Group formulated a project to establish Renewable Energy Plant.

According to the project of MCS Group, it is possible to commence the construction work from March of 2020 and commission in 2023. A price per kilowatt electricity is estimated to be 9.5 cents. Newcom Group informed that price per kilowatt electricity will be 11.5 cents and construction work will be complete in 2022. As the power plant is planned to be established in southern Gobi, over USD200 million, current annual payment for imported electricity by Oyutolgoi Company, will remain in the country. Moreover, there will be advancement in the infrastructure development of Mongolia’s southern region and it will be domestically provided with electricity.