April 24 (Renewables Now) – The Asian Development Bank (AfDB) approved a loan of USD 100 million (EUR 92.5 million) to support the installation of an advanced 125 MW battery energy storage system in Mongolia.
The project is expected to cost $ 114.95 million in total. Of this amount, USD 3 million in co-financing comes from the ADB High Level Technology Fund, funded by the Japanese government. The government of Mongolia will provide $ 11.95 million for the project, the AfDB announced on Friday.
Once in service, the battery system will be capable of delivering 44 GWh of peak power annually. It will also support the integration of an additional 859 GWh of renewable energy into the grid, thus avoiding 842,039 tonnes of carbon dioxide (CO2) emissions per year by 2025.
The project is expected to be completed in September 2024.
Mongolia’s renewable energy potential is currently underutilized, ADB says. The share of the country’s combined heat and power generation reached 93% of total electricity production in 2018. Mongolia aims to increase the share of renewables in its total installed capacity to 20% by 2023 and 30% to 2030 from 12% where it was in 2018, the Asian lender said.
(USD 1.0 = EUR 0.92)