It is reported that Mongolia's first wind energy project, the 50 MW Salkhit wind farm, with GE's wind turbines, is getting USD 47 million in investments from the EBRD.
Clean Energy is currently 75% owned by Newcom and 25% owned by the bank. The bank will also take a further USD 4.4 million equity stake in Clean Energy.
Mr Bayanjargal Byambasaikhan CEO of Newcom said that "The Salkhit wind farm is a flagship project for Mongolia's renewable energy. It marks the dawn for Mongolia's aspiration to becoming Asia's renewable energy champion."
Located about 70 kilometers away from the capital Ulaanbaatar, Salkhit will generate enough current to answer about 5% of the country's needs while achieving a carbon dioxide emission reduction of approximately 164,000 tonnes annually. The wind turbines project will also generate carbon credits that Clean Energy can sell.
General Electric will be providing the wind turbines for Salkhit. The site is expected to come online this year.
According to Ms Nandita Parshad, the bank's director for power and energy, Mongolia has strong winds which can be tapped to diversify the country's energy mix. She added that "We hope this transaction paves the way for increased private interest in the renewable power sector which can reduce Mongolia's dependence on coal and its carbon footprint and will contribute to Mongolia's sustainable development."
Mongolia's current installed renewable energy capacity is around 800 MW. The Salkhit project will be the first significant renewable energy generator in the country.