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District heating supply improvement

Improving district heating to the benefit of the local population

Ulaanbaatar is one the most polluted cities in the World. The cold season is very long - 9 months a year with temperature below 0°C - and characterized by extremely cold temperatures, often reaching below 40 °C. Half of the population in the capital lives in houses or yurts and get heated with their individual stoves leading to high level of pollutants (dust, SO2, Nox). An Ulaanbaatar Clean Air Program has been implemented to provide strategies and investments for reducing air pollution in the city. In particular, the development of the central heating system from combined heat and power plants was one of the key recommendations to reduce air pollution.


Seureca built an investment plan and institutional capacity building program for the Ulan Bator district heating supply system, in line with the Mongolian law and World Bank safeguards policies.
As part of this project :
  • Seureca developed a Master Plan for the district heating service expansion in Ulan Bator over the next 15 years. The Plan covers a thorough analysis of the system capacity, structure, performance, safety and reliability and included a priority investment program for the next 3 years to cover the population needs. The hydraulic modeling of the district heating network was also carried out via the Termis software.
  • A detailed analysis of the industry structure was carried out, leading to institutional recommendations to optimize the quantity, quality and the cost of the district heating services supply in Ulan Bator.
  • Seureca developed recommendations to the government heat transport company, UBDHC. These recommendations covered organizational review and changes, management practices, system requirements, and need for better communication towards customers in order for the state heat transport company (UBDHC) to operate on a fully commercial basis.
  • Seureca examined the current financial performance of the UBDHC and CHCs (City Housing service Companies)  and provided recommendations for optimizing cash flows, meeting current obligations including debt service, and strengthening ability to self-finance capital expenditures.
Results :

The strategy provided clear allocation of responsibility between key stakeholders (City, Ministry of Energy and the public utilities) to develop the heating network. The defragmented municipal sector was reorganized and a new integrated entity was set up to improve the operational and financial performance for district heating. A technical strategy was developed to provide short and long term solutions to optimize the operating conditions of the district heating system. The objective is to implement the recommended measures to connect developing areas to the central heating system and reduce air pollution in the city. 

Population : 1,200,000

Production capacity : 1,500 MWth

System length : 500 km
Number of customers : 100,000


Client benefits :

  • Reduce energy consumption

Solution :

  • Investment planning
  • Capacity building program