At its regular session on May 6, the Cabinet approved a resolution aimed at improving governance and increasing efficiency in the energy sector.

Under the resolution Minister of Energy Naidalaa Badrakh was instructed to implement measures to reduce costs by at least three percent across all stages of electricity generation, transmission, distribution, and supply, while improving operational efficiency, ensuring transparency in procurement, strengthening oversight, discipline and accountability, optimizing staffing and organizational structures, and enhancing corporate governance in energy companies.

The resolution also directs authorities to improve the quality of services provided to consumers, expand digitalization, increase productivity and efficiency, and create conditions for consumers to monitor and reduce their electricity consumption and manage payments more conveniently.

To ensure the energy sector can meet peak winter demand in 2026–2027, the Government plans to commission the 70 MW thermal power plant under construction in Sukhbaatar soum of Selenge aimag during the third quarter of this year. The “Zes Oyu” power plant, which will supply up to 80 MW to the Central Region Integrated Grid, is also scheduled to enter operation before August. In addition, battery energy storage projects aimed at covering electricity shortages during peak demand periods will be implemented with private-sector investment.

Published Date:2026-05-08