The Asian Development Bank (ADB) has approved a $40 million loan for a novel distributed renewable energy and energy storage system in Mongolia.
The 41 MW system will use a variety of renewable energy technologies and is a first-of-a-kind for Mongolia. It will supply remote and less developed parts of the country with electricity and heating.
“A clean, reliable, and sustainable energy sector is needed to boost economic growth in western Mongolia while addressing the need to reduce carbon and air pollutant emissions,” said ADB Principal Energy Specialist for East Asia Mr. Shigeru Yamamura. “The 41 MW renewable energy system that the project will finance will not only make the energy sector less carbon intensive, but also help the country’s efforts in meeting its commitment under the Paris climate agreement to reduce carbon emissions by 14 per cent by 2030.”
The project will use solar photovoltaics, wind energy, battery energy storage technologies and energy management systems to supply clean and reliable electricity to geographically scattered local towns in western Mongolia, which rely on high-cost and high-carbon-intensive electricity imports from neighbouring countries.
The project will also showcase a 500 kW thermal shallow-ground heat pump system, which will supply pollutant-free space heating in public buildings. This system could be scaled up in the future and, ultimately, help mitigate local air pollution during winter.
The total cost of the project is $66.22 million, with the government of Mongolia contributing $5.62 million. It is expected to be completed by 2023.
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