Khunnu city is planned on 31,000 hectares in Sergelen soum’s New Aviation Zone. Infrastructure work, electricity, water, heat supply, flood-protection canal, sewage, is being started in stages to support the new city.
Officials report the Sergelen substation is 92% complete. As part of the substation project, a 100 MW solar array and a 90 MW battery storage station will also be built. The capital city will select the final contractor for the battery/solar package this month through a public–private partnership process, city officials said.
Prime Minister G.Zandanshatar has stressed the strategic importance of developing Sergelen as a transit node for Ulaanbaatar’s energy transmission to ensure reliable operation of the capital’s power system.
Mayor Kh.Nyambaatar said, “The contractor is working to put the Sergelen substation into operation this year. The station will connect to the Songinokhairkhan substation in the west and the Nalaikh substation in the east, serving as a transit hub for the city’s energy flows. The 90 MW battery will also be built to charge Khunnu from its own sources and share the load during peak hours. We expect the PPP contractor selection to be completed within this month. Once connected to the Sergelen substation, the battery will meaningfully reduce missing energy consumption.”
City and national authorities note Mongolia’s electricity demand is rising 11–15% per year. To bolster supply, the capital has already commissioned the 300 MW Buuruljuut power plant and a 50 MW Baganuur battery storage facility. Construction of Thermal Power Plant- V is due to begin next April and the plant is expected to be commissioned in 2028.
Officials say the combined commissioning of the Sergelen substation, the 100 MW solar farm and the 90 MW battery storage will help eliminate energy shortages in Ulaanbaatar by strengthening transmission capacity, adding local generation and improving peak-hour resilience.

Published Date:2026-02-04