The $100 million loan will be used to install a 125MW BESS to accelerate the adoption of renewable energy.
Once complete in September 2024, the BESS will be one of the world’s largest and will help Mongolia to increase its portfolio of renewables to 44GWh per annum.
The $114.95 million project will support the integration of an additional 859GWh of renewable electricity into the energy system grid, avoiding 842,039 tons of carbon dioxide emissions annually by 2025.
The project is co-financed by the governments of Japan and Mongolia ($11.95 million).
James Lynch, director general of ADB’s East Asia, said: “Mongolia is among the most heavily coal dependent developing member countries of ADB, and its energy sector is the largest contributor to its greenhouse gas emissions, accounting for about two-thirds of the total.
“The project will lead to the decarbonisation of the energy system in the country with increased penetration of renewable energy.”
The energy transition is a hot topic disrupting the utility industry in Asia and will be a key focus at Enlit Asia which takes place in Jakarta, Indonesia from 23-25 March. For more details click here.
In 2018, coal-fired combined heat and power plants contributed to 93% of total power generation in the electricity grid.
Mongolia has the potential to generate 2,600GW of energy from renewables and the government has set a target to expand renewables portfolio from about 12% in 2018 to 20% by 2023 and 30% by 2030, in line with the State Policy on Energy, 2015–2030.