Controversial hydropower plants expected to dominate talks at Mongolia-Russia meeting in Moscow

The discussion of Mongolia’s proposed hydropower plants (HPP) on the rivers that feed into Lake Baikal is expected to be the main topic of discussion at the 11th Mongolia-Russian Intergovernmental Commission meeting, taking place in Moscow between February 26 to 28.

Although a regular meeting, the meeting of the intergovernmental commission will likely be important in deciding the future of Mongolia’s HPPs as the discussion surrounding it has increased in the lead up to the meeting.

The Russian Energy Ministry has reportedly drafted an intergovernmental agreement on power supplies from Siberia to Mongolia. The move is a response to Mongolia’s plans to build several hydroelectric dams along the Selenge and Eg Rivers that flow into Lake Baikal.

Mongolia has planned on building three midsized HPPs along the River Selenge and its tributaries, with capacities of 315 MW, 245 MW and 100 MW respectively.

The proposed power supply from a Siberian HPP to Mongolia has been advertised as a “cheaper long-term alternative” by Moscow.

“We have worked with the Mongolian side. To date, there is no written decision [on electricity supplies],” Alexei Tsydenov, the governor of Buryatia said regarding the issue.

“But we have reached an understanding that alternative energy supplies by Russia would solve most of the problems that the Mongolian side hopes to solve with the construction of HPPs,” he added.

According to trade statistics, Mongolia imported 21.2 percent more energy from Russia in the first nine months of 2017. Tsydenov noted that the proposed new agreement is a long-term contract for greater volumes at a tariff 3.5 times lower than the expected price of power from the proposed HPPs.

Russia’s Federal Grid Company, an affiliate of Rosseti holding, initiated preparation of a preliminary feasibility study for the Russia-Mongolia power bridge. Rosseti announced that the study results are scheduled to be discussed in the second quarter of 2018.

Rosseti has proposed building a cross-border 500-kV power line could be built to transmit energy at a cost of 55 billion RUB or 972 million USD.

Russia has been publically pushing for Mongolia to find alternatives to the proposed HPPs and the meeting of the commission is an opportunity for the Russian side to convince Mongolian officials.

The meeting of the Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation will be headed by Deputy Prime Minister U.Enkhtuvshin and Russian Minister of Natural Resources and Environment Sergey Donskoy. The agenda topics of the meeting include bilateral cooperation on construction of a power plant at Eg River, border region development, road and transport, energy, environment and agriculture.