Mongolia and EBRD collaborate on solar wind and energy storage

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Mongolia to harness renewable energy to reduce reliance on fossil fuels and lower greenhouse gas emissions.

The EBRD will also support the development of a national renewable energy policy.

Introduction

The European Bank for Reconstruction and Development (EBRD) has announced a new partnership with the Government of Mongolia to support the development of renewable energy projects in the country. The partnership aims to promote sustainable energy development and reduce reliance on fossil fuels in Mongolia.

Key Objectives

  • Develop 300MW of solar power facilities and 200MW of wind power plants with energy storage by 2028
  • Support the development of a national renewable energy policy
  • Promote sustainable energy development and reduce reliance on fossil fuels
  • The Partnership

    The EBRD will support Mongolia in developing solar, wind, and energy storage projects through auctions. This approach will enable the country to attract private sector investment and promote competition in the renewable energy sector.

    Auctions as a Key Mechanism

  • Auctions will be used to select the most suitable projects for development
  • The EBRD will provide technical assistance and support to ensure the competitiveness of Mongolian projects
  • The partnership will also provide financing for the selected projects
  • Benefits of the Partnership

    The partnership between the EBRD and the Government of Mongolia will have several benefits, including:

  • Reduced greenhouse gas emissions: The development of renewable energy projects will reduce Mongolia’s reliance on fossil fuels and lower greenhouse gas emissions. Job creation and economic growth: The partnership will create new job opportunities and stimulate economic growth in the renewable energy sector. Improved energy security: The development of renewable energy projects will improve energy security and reduce the country’s dependence on imported fossil fuels.

    The Energy Sector in Mongolia

    Mongolia’s energy sector has traditionally been dominated by the state-owned energy company, Erdenes Tavan Tolgoi. However, the government has recognized the need for reform and is working to create a more competitive and sustainable industry.

    Key Challenges

  • Limited access to energy: Many Mongolians lack access to reliable and affordable energy, which hinders economic development and social progress. Dependence on imported fuels: Mongolia relies heavily on imported fuels, which makes it vulnerable to fluctuations in global energy prices. Lack of investment: The energy sector has historically received limited investment, which has hindered the development of new projects and the growth of the industry. ## The Reform Initiative*
  • The Reform Initiative

    The government’s reform initiative aims to address these challenges and create a more sustainable and competitive energy sector. The key components of the initiative include:

  • Improving transparency: The government is working to increase transparency within the energy sector, including the publication of data on energy production and consumption. Liberalising the energy market: The government is liberalising the energy market, which will allow private companies to participate and invest in the sector.

    The European Bank for Reconstruction and Development (EBRD) has been actively involved in supporting the country’s economic development since 2001.

    EBRD’s Investment in Mongolia

    A Long History of Support

    The EBRD has been a key player in Mongolia’s economic development for over two decades. Since its inception in 2001, the bank has invested over €1.3 billion in the country, making it one of the largest investors in Mongolia’s private sector. The EBRD’s investment in Mongolia has focused on supporting the country’s transition to a market-based economy. The bank has invested in various sectors, including energy, mining, and infrastructure. The EBRD has also provided financing for small and medium-sized enterprises (SMEs) in Mongolia.

    Key Projects

    The EBRD has invested in a wide range of projects in Mongolia, including:

  • Tavan Tolgoi coal mine: The EBRD invested €120 million in the development of this large coal mine. Erdenes Tavan Tolgoi: The bank invested €50 million in the development of this coal mine. Mongolian Energy Corporation: The EBRD invested €20 million in the development of this energy company.
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