ADB, LEAP to back 15 MW in Mongolia with $18.7m loan www.pv-magazine.com
The Asian Development Bank (ADB) and Leading Asia’s Private Infrastructure Fund (LEAP) have agreed to provide an $18.7 million loan to support the development of a 15 MW solar project in Mongolia.
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Sermsang Power (SSP) and Tenuun Gerel Construction (TGC) will use the funds to build and maintain the array, which will be connected to Mongolia’s central grid network. The project will be built in the Khushig valley, in Tuv aimag (province). Upon completion, the installation will generate an estimated 22.3 GWh of electricity per year, according to an online statement. The funds will be backed by an additional technical assistance grant from the Canadian Climate Fund for the Private Sector in Asia.
“This project uniquely incorporates climate-resilient technical solutions from the private sector to accommodate Mongolia’s cold and dry climate,” said Michael Barrow, director general of ADB’s private sector operations department. “The project also benefits from the transfer of operational knowledge and advanced technology from Japan and Thailand in developing and operating solar power plants.”
The loan is the first such agreement that the ADB has signed in cooperation with LEAP in Mongolia. LEAP was set up three years ago to facilitate financing for ADB-backed infrastructure projects throughout the Asia-Pacific region, in cooperation with the Japan International Cooperation Agency (JICA).
SSP and TGC are backed by Bangkok-based Sermsang Power and Japan’s Sharp Energy Solutions, in addition to two Mongolian companies. But the planned Khushig valley project is not Sharp’s first foray into Mongolian solar. Last September, it completed a 16.5 MW (DC) array in Zamyn Uud, Dornogovi aimag.
Earlier this year, the Green Climate Fund and Mongolia’s XacBank announced the completion of a 10 MW solar plant in Govisümber aimag. XacBank provided a $17.6 million loan to fund the construction of the project.
Mongolia’s total installed PV capacity stood at just 25.02 MW at the end of 2017, according to statistics from the International Renewable Energy Agency (IRENA). At present, the country derives much of its energy from coal-fired power plants. However, its pipeline of approved PV projects has already surpassed 700 MW.