ADB supports private sector solar power development in Mongolia
The Asian Development Bank (ADB) and the Leading Asia’s Private Infrastructure Fund or LEAP signed an USD 18.7 million loan with Sermsang Power Corporation Public Company Limited and Tenuun Gerel Cons
The Asian Development Bank (ADB) and the Leading Asia’s Private Infrastructure Fund or LEAP signed an USD 18.7 million loan with Sermsang Power Corporation Public Company Limited and Tenuun Gerel Construction LLC to build, operate, and maintain a 15-megawatt solar power plant supplying electricity to Mongolia’s central grid system. The loan agreement for the Sermsang Khushig Khundii Solar Project marks ADB’s first co-financing with LEAP in Mongolia’s renewable energy sector. The Canadian Climate Fund for the Private Sector in Asia provided a technical assistance grant to offset first mover costs and to catalyze the financing of ADB’s first private sector solar power project in Mongolia. The solar power plant is located in the Khushig valley at Sergelen soum in Central province. It will supply electricity to the Central Energy System, which delivers power to an area accounting for over 80 percent of the country’s energy demand. The solar project will generate clean electricity totaling 22.3 gigawatt-hours annually in Mongolia, while lowering the country’s carbon emissions by 26,400 tons per year. It will help the government increase the share of renewable energy in total installed capacity from 12 percent in 2017 to a targeted 20 percent by 2023 and 30 percent by 2030. Shifting to cleaner energy sources will also reduce electricity imports, improve Mongolia’s energy security, and mitigate air pollution. The energy sector is dominated by coal-fired power plants and currently accounts for over 60 percent of the country’s greenhouse gas emissions.
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