Installation of new efficient district heating system in Mongolia

District heating
Zuunkhangai district of Uvs province, Mongolia
Heat only boiler and distribution system
Investment Size
US$ 150,900
Financial results
Payback of 8 years
Energy savings
4,430 MWh per year
CO2 savings
1,500 tonnes per year
Reduced energy consumption; reduction of pollutants emission; lower level of failure and reduced risk of heating interruptions; improvement management of heating in the district.

A new district heating system in Mongolia, delivering considerable energy savings in the Province.

A MonSEFF loan helped a Mongolian company operating in construction, maintenance and rehabilitation of water infrastructures, power transmission lines, electrical substations and district heating infrastructures to reduce its energy costs.

The company, established in 1993, decided to invest in a new district heating system to provide heat to different facilities located in Uvs province. The new system mainly includes a heat-only boiler and distribution system, and is to replace the decentralised boilers installed in different facilities. Such boilers are very old, inefficient and oversized. The new and modern boiler and distribution system allow a 30% energy saving compared to the existing situation in the Province.

Such soviet-age manufactured boilers were replaced by a new, modern and efficient boiler manufactured in Mongolia. The new boiler allows significant fuel savings and valuable reduction of polluting emissions. The project should be viewed in the context of modernisation and improvement of the infrastructures within Zuunkhangai district of Uvs province, with consequent improvement in the life quality of the community.

The MonSEFF team met the company and, based on the gathered data, calculated the energy and cost savings related to the investment.

The US$ 150,900 investment allowed the company to install energy saving technology, reducing the energy consumption by 4,430 MWh per year and saving US$ 53,100 per year. This means energy savings will repay the investment within 8 years.

The new district heating system led to a reduction of the CO2 emissions by 1,500 tonnes per year, therefore improving the local environment for both humans and animals.

MonSEFF in Mongolia was developed and funded by the European Bank for Reconstruction and Development (EBRD).