Credit agreement signed on funding solar power plant

Asian Development Bank, Leading Asia’s Private Infrastructure Fund /LEAP/ and the Tenuun Gerel Construction company have signed a credit agreement for funding the construction of a solar power plant with a capacity of 15 MWt.

According to ADB Private Sector Operations Department Director, Michael Barrow, the project is particular for combining technical solutions developed by the private sector in considering dry and cold climate of Mongolia. The fact that Japanese and Taiwanese advanced technologies and operational expertise in building and operating solar power plants are adopted, serves as a good precondition for implementing the project successfully.

The solar power plant at Khushigt valley will supply power to energy system of central region which makes up over 80 percent of the total energy consumption of Mongolia.

The project will allow Mongolia to produce 22.3 mln KWt power a year and reduce carbon emission by 26 400 tons per year.

Coal based power plants are the major power generators in Mongolia which make up 60 percent of the total carbon emission.