Oyu Tolgoi Power Purchase Agreement

Oyu Tolgoi just announced that they have concluded a power purchase agreement with a Chinese utility and can now go forward with their project.

That obviously means that the necessity for generating their own power from a solar or wind installation right next to their mine has gone down somewhat.

It might still make sense, however. As pointed out earlier, this kind of project would make it much easier to get World Bank funding.

And Oyu Tolgoi is in need of sympathy from the Mongolian people to counter the recent new resource nationalism. Getting on board with the Asia Super Grid (Desertec Asia) project should help with that.

Published by kflenz

Professor at Aoyama Gakuin University, Tokyo. Author of Lenz Blog (since 2003, lenzblog.com).

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