Darkhan City is facing major challenges with their current district heating system. The system is unstable and the risk of increasing interruptions leaves the population with a lack of heating and hot tap water for hours or even days at a time.
The Mongolian Ministry of Energy and Darkhan District Heating Company has recognized the need for the Darkhan District Heating network to be changed from an open-type system to a closed-type system.
In February 2013, a Memorandum of Understanding was signed by the Ministry of Energy, Darkhan District Heating and CLEAN (former Danish Energy Solutions) for the improvement and technical upgrade of Darkhan District Heating.
CLEAN and a consortium of renowned Danish companies including ABB, Logstor, Kamstrup, Danfoss, OE3i and DESMI are developing a solution, in cooperation with Darkhan District Heating Company, to solve the challenges. By introducing and delivering a comprehensive, state-of-the-art district heating system, the solution is going to convert the Darkhan District Heating system into a closed-type system and upgrading the system with a number of new technical facilities (substations, SCADA, new pumps etc.).
The technical solution is based on years of experience on the Mongolian market and several of the companies mentioned above have previously developed or participated in renovation of district heating systems in Mongolia, such as in the capital Ulaanbaatar. A high involvement of Darkhan District Heating Company, local workers and construction companies are important in order to implement the solution within the best framework.
The project has a high priority for the Mongolian state and the intentions are to include the proposed project on the state budget in 2015. It is still not clear if the total project amount can be financed solely by the Mongolian state, so other potential financing sources are still being investigated.