September 21 (Renewables Now) - The Asian Development Bank (ADB) said on Thursday it will provide a USD-40-million (EUR 33.9m) loan to support a 41-MW distributed renewable energy project in Mongolia.
Specifically, the Upscaling Renewable Energy Sector Project will feature 40.5 MW of solar and wind power capacity with advanced battery storage technology to power towns in western Mongolia, and a 500-kW thermal shallow-ground heat pump system to provide heating in public buildings.
In addition to the initial loan, a USD-14.6-million grant will be provided by the Strategic Climate Fund (SCF) under the Scaling Up Renewable Energy Program in Low-Income Countries, as well as a USD-6-million grant from the Japan Fund for the Joint Crediting Mechanism (JFJCM), ADB's said in its press release.
In all, the project will cost USD 66.22 million, with the local government contributing USD 5.62 million. Expected to be completed by 2023, the DG system will help connect more than 258,313 people to clean and reliable electricity and heat, while offsetting 87,968 tonnes of carbon dioxide (CO2) emissions annually, ADB noted.
(USD 1 = EUR 0.85)