Mongolia’s largest solar project gets EBRD backing
Around $31.6 million loan is being provided as a syndicated loan from the European Bank for Reconstruction and Development (EBRD) together with Triodos Investment Management and FMO.
Mongolia-based Desert Solar Power One LLC will receive financing for the construction of a 30-MW solar park in Mongolia. Around $31.6 million loan is being provided as a syndicated loan from the European Bank for Reconstruction and Development (EBRD) together with the globally active impact investor Triodos Investment Management and FMO Dutch Development Bank. Each of the three lenders is providing about USD 10.5 million. Accordingly, the construction of the solar photovoltaic park near Sainshand city in Dornogobi Province is expected to start this year. The total cost of the project is estimated at USD 47.5 million. The current power and heat generation in Mongolia depends on highly polluting coal-fired combined heat and power plants. Therefore, the project is in line with the bank’s Green Economy Transition approach, in which it aims to dedicate 40% of its annual investments to climate finance by 2020. EBRD was the original seed investor in the first ever renewable energy project in the country, the Salkhit wind farm, and has financed a total of three wind farms. This will be its first utility-scale photovoltaic project to get financing in Mongolia.
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