ADB to support first distributed renewable energy system in Mongolia
The distributed renewable energy system will help connect about 260,000 people in the project areas to clean and reliable electricity and heat supply.
The Asian Development Bank approved a USD 40 million loan to develop a 41 megawatt (MW) distributed renewable energy system—a first-of-its-kind in Mongolia using a variety of renewable energy technologies to supply power and heating in the remote and less-developed western regions of the country. The distributed renewable energy system will help connect about 260,000 people in the project areas to clean and reliable electricity and heat supply, while a total of 88,000 tons of carbon dioxide emissions annually will be avoided by 2023. The project will also help enhance the ability of the local electric utilities and related agencies to manage a stable electricity supply. In addition, it will help build a foundation for future private renewable energy investment in western Mongolia by supporting preparation of long-term renewable energy investment plan. The total cost of the project is USD 66.22 million, with the Government of Mongolia contributing USD 5.62 million. It is expected to be completed by 2023. The Government of Mongolia has been making efforts to increase renewable energy use since 2000. However, the share of renewable energy in Mongolia’s energy mix remains low at 12 percent. ADB’s assistance for this project will help the government meet its goals under its State Policy on Energy, 2015–2030, which aims to raise the share of renewable energy to 20 percent by 2023 and 30 percent by 2030.
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