Mongolia secures $54m for power grid upgrades

A new project to improve the reliability and sustainability of electricity services in Mongolia has been approved. The World Bank’s Second Energy Sector Project will provide $54.4 million (£42.5m) to address […]

Register now!

By Jonny Bairstow

A new project to improve the reliability and sustainability of electricity services in Mongolia has been approved.

The World Bank’s Second Energy Sector Project will provide $54.4 million (£42.5m) to address bottlenecks in the Central Asian nation’s power grid by upgrading ageing assets and expanding distribution capacity.

Obsolete and inefficient distribution networks have led to significant distribution losses of as much as a quarter in parts of the country.

The project will upgrade and expand the capacity of power distribution infrastructure in the Baganuur-Southeast and the Erdenet-Bulgan distribution networks, which supply electricity to nine of Mongolia’s 21 provinces.

It will also help scale up renewable energy production in remote rural areas by designing and building a 10MW solar power plant.

This clean energy facility will supply affordable and sustainable energy to the country’s western region, which currently imports 70% of its power supply.

Peter Johansen, Senior Energy Specialist of the World Bank, said: “We are encouraged by the government’s target to increase the share of renewables to 30% by 2030.

“With its abundant solar and wind power resources, the country is now considering to more effectively and efficiently incentivise renewable energy investment to fully use its potential.”