EBRD Funds First Wind Energy Farm in Mongolia
20 March 2012: The European Bank for Reconstruction and Development (EBRD) is investing in the first privately-owned wind farm in Mongolia, the Salkhit wind farm.
EBRD is providing a loan of US$42.4 million to Clean Energy LLC, the company created to build the wind farm, and will take a US$4.4 million equity stake in it, equivalent to 25% of the total equity. The remaining 75% of the company is owned by Newcom LLC, a Mongolian company that holds investments ranging from technology to aviation. Nandita Parshad, EBRD's Director for power and energy, expressed hope that this investment will increase private interest in the renewable power sector and thus reduce Mongolia's dependence on foreign and fossil energy, as well as provide a contribution to Mongolia's sustainable development.
The 50 MW Salkhit wind farm will be built approximately 70 km away from Ulaanbaatar and provide approximately 5% of the country's electricity needs, which are currently served mainly by coal-fired power plants. It is expected to reduce CO2 emissions in the country by approximately 164,000 tonnes annually, and will enable the company to sell carbon credits.
EBRD has also facilitated technical assistance to Mongolia, funded by Japan, to develop a regulatory framework for renewable energy. It also used funding from Luxembourg for the environmental and social impact assessment for the Salkhit wind farm. [EBRD News]