A 55MW wind farm in Mongolia’s Gobi Desert will receive a $120 million financing package from a group of lenders including the European Investment Bank and the European Bank for Reconstruction and Development.
The Sainshand wind farm will be built and operated by French energy firm Engie. German developer Ferrostaal, the Danish Climate Investment Fund and Mongolian entrepreneur Radnaabazar Davaanyam are also sponsoring the project.
EIB will provide funding of $47 million, with Danish export credit agency EKF guaranteeing the first tranche. EBRD will kick in $31.5 million of funding.
The Sainshand project, which will be built in the country’s Dornogovi province, will comprise 25 2.2MW turbines. Construction will begin later this summer, with the project slated to go online by the end of 2018. Beijing-based China Machinery Engineering Corporation will lead the site’s engineering, procurement and construction.
The project will be Mongolia’s third privately financed wind farm, as the country looks to increasingly incorporate renewables into its power mix. The government aims to generate 20 percent of all power from renewable sources by 2020 and 30 percent by 2030.
“Mongolia is facing an energy challenge due to increasing demand from industrialisation and urbanisation,” said Paul Maguire, chief executive of Engie’s Asia Pacific division. “As our first renewable energy project in Mongolia, Engie’s investment in the Sainshand wind farm is consistent with our vision of leading the global energy transition.”
In June, a $54.4 million project including a 10MW solar plant in Mongolia’s Khovd province received backing from the World Bank.