The Asian Development Bank (ADB) has signed an agreement with the government of Mongolia to support the development of a 41 MW distributed renewable energy system.
The ADB has approved $40 million of funding for the project, including $14.6 million from the Strategic Climate Fund, $6.0 from the Japan Fund for the Joint Crediting Mechanism, and $5.6 million from the government of Mongolia. The agreements were signed by Minister of Finance Mr. Khurelbaatar Chimed and ADB Country Director for Mongolia Yolanda Fernandez Lommen at a ceremony in Ulaanbaatar.
“These projects will support the government’s efforts to raise the share of renewable energy, decrease carbon dioxide emissions, and improve public financial resource mobilization and management,” said Ms. Fernandez Lommen. “They are also closely aligned with ADB’s Country Partnership Strategy for Mongolia to foster inclusive growth, improve people’s access to services, and strengthen environmental sustainability.”
The renewable distributed energy system will be the first of its kind in Mongolia, combining solar photovoltaics with wind energy and battery storage technology. The project will result in the supply of clean and reliable electricity to about 260 000 people in remote and less-developed towns in western Mongolia, who currently rely on high-cost and high-polluting carbon-intensive electricity.