Mongolia is considering the possibility of obtaining a loan of up to $30 million (€25.8 million) from the European Bank for Reconstruction and Development (EBRD), which will be directed towards the modernization of the power grid infrastructure in the southern part of the country. This will enable the transmission of both existing and new renewable energy capacities.
In particular, the planned state loan will be used for the construction of a 214-kilometer (132 miles) power transmission line from Sainshand to Tsagaan Suvarga with a voltage of 220 kV, as well as for the expansion of the existing Tsagaan Suvarga 220/22 kV substation. The total investment for this project is expected to be around $43.6 million.
Additionally, this project will contribute to the development of human capital by providing support to the National Power Transmission Company in establishing a National Center of Excellence in Renewable Energy in Mongolia. This center will focus on upskilling and training local specialists in renewable energy, aligning with the changing demands of the labor market, as stated in the announcement.
The project is being financed by the government of Mongolia through the Ministry of Energy, with the National Power Transmission Network designated as the future operator.
