The Asian Development Bank (ADB) will support the uptake of renewable energy in Mongolia with a $100 million loan for a 125 MW battery energy storage system.
The $115 million installation will be able to supply 44 GWh/year of peaking power to the Mongolian electricity system, according to the ADB. The government of Mongolia is providing $12 million for the project, while $3 million of the ADB funding will be sourced from the bank’s High Level Technology Fund, financed by the Japanese government.
The battery installation is due to be completed in September 2024. It will support the integration of additional 859 GWh of renewable power into the grid, ADB said.
According to ADB, Mongolia’s renewable energy potential is currently underutilised. The country’s coal-fired combined heat and power share reached 93 % of the total electricity generation in 2018. Mongolia aims to raise the renewables share in its total installed capacity to 20 % by 2023 and 30 % by 2030 from 12 %, which is where it stood in 2018.