Asian Development Bank to Provide $18.7 Million for 15 MW of Solar Projects in Mongolia

The Asian Development Bank (ADB)) and Asia’s Private Infrastructure Fund (LEAP) have signed an agreement to provide an $18.7 million loan to develop 15 MW of solar power project in Mongolia.

The loan agreement has been signed with Sermsang Power Corporation Public Company Limited (SSP) and Tenuun Gerel Construction (TGC), under which they will build, operate, and maintain the solar projects.

The solar power project is located in the Khushig valley located in Tuv aimag (province) Sergelen soum (county). It will supply power to Mongolia’s central grid system which delivers power to over 80 percent of the country’s energy demand.

“This project uniquely incorporates climate-resilient technical solutions from the private sector to accommodate Mongolia’s cold and dry climate. The project also benefits from the transfer of operational knowledge and advanced technology from Japan and Thailand in developing and operating solar power plants,” said Michael Barrow, Director General of ADB’s Private Sector Operations Department.

The solar project is likely to generate 22.3 GWh of electricity annually and lower Mongolia’s carbon emissions by 26,400 tons per year. It will also help the government increase the share of renewable energy in the total installed capacity from 12 percent in 2017 to a targeted 20 percent by 2023 and 30 percent by 2030.

“For SSP, this project is not only an important milestone for investment in renewable power projects in Asia but also reflects our philosophy in developing ecologically sustainable projects,” said Varut Tummavaranukub, CEO of SSP.

LEAP was established in 2016 to finance ADB-supported infrastructure projects in Asia and the Pacific and fill financing gaps and increase access. The fund is supported by the Japan International Cooperation Agency and is managed by ADB’s Private Sector Operations Department.

In November 2018, ADB signed a loan agreement with the Government of Mongolia under which it agreed to provide $60.6 million for distributed renewable energy projects in the country.

The loan towards renewable energy was to develop a 41 MW distributed renewable energy system—a first-of-its-kind in Mongolia—using solar photovoltaic and wind energy with advanced battery storage technology and energy management systems.

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ADB finances Mongolia's first private sector project

ULAN BATOR, March 20 (Xinhua) -- The Asian Development Bank (ADB) and Mongolian company Tenuun Gerel Construction LLC on Wednesday signed a loan agreement for 18.7 million U.S. dollars for a solar power plant project with a capacity of 15 megawatts.

"The ADB has provided financial assistance to private sector projects of many countries. The loan agreement for the solar project is the ADB's first co-financing with the Leading Asia's Private Infrastructure Fund (LEAP) in Mongolia's renewable energy sector," Yolanda Fernandez Lommen, ADB country director for Mongolia, said at the signing ceremony.

The construction of the solar power plant called "Bukhug" began in May 2018 and was completed in December, according to Tenuun Gerel Construction.

"I am very happy that our company became the first Mongolian private company which received funding from the ADB," Sukhbaatar Odbaatar, director of the company, told Xinhua.

"Initially, our company built the plant with its own funding. Today, we replaced the money spent on the construction of the plant with the low interest loan from the ADB," Odbaatar said.

The solar power plant started supplying electricity to Mongolia's central grid system since the beginning of this year and it can generate 29.3 million kwh of electricity per year to the country's national power grid, Odbaatar said.

Mongolia currently has around 18 percent of its power generated from renewable energy, including solar and wind. It aims to make renewable energy use account for 20 percent by 2020 and 30 percent by 2030.

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Solar Empowerment of Nomads in Rural Mongolia

Solar power is not only an environmentally friendly alternative, but in many cases the only available source of energy.

One third of the Mongolian population is living a nomadic life. They sustain livestock and move seasonally across the vast Mongolian grasslands, bringing with them their Ger— foldable traditional homes made of felt and yak’s wool. Their whereabouts range in infinite areas, hours away from a paved road and maybe days away from a village.

When you constantly travel with all of your belongings, you are much less dependent on things—you carefully choose to own and carry only what is essential. And one of the few technologies that has become ubiquitous in Mongolian Ger is solar.

The Mongolian government launched the “National 100,000 Solar Ger Electrification Program”, an initiative to provide nomads with portable solar home systems (SHS). Simple portable panels and batteries, easy to set up and carry, have become a modern accessory in the traditional nomad homes.

They power LED light bulbs to light up the evenings. They power mobile phones and radios, providing vital information on weather conditions and connecting the nomads with the outside world—be it their children, who stay in dorms during the school year, or a rescue service, in case of need. Even in the age of technology, the freedom of nomadic lifestyle is sustained by the environment: empowered by the Sun.

Source:www.greenoptimistic.com

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Share of renewable energy in Mongolia reaches 16 pc

ULAN BATOR, Dec. 31 (Xinhua) -- The share of renewable energy in Mongolia's total electricity production has reached a record high in 2018, local media reported Monday.

The share of renewable electricity generation rose to 16 percent on average for 2018, the country's Ministry of Energy was quoted as saying.

A solar power plant with a capacity of 15 megawatts (MW) opened in late June in Zamiin-Uud soum in Mongolia's southeastern Dornogovi province, while two other solar power plants with the capacity of producing 30 MW and 20 MW of electricity each have been put into operation recently.

Also, a wind farm with a total capacity of 55 MW was commissioned in late September nearby Sainshand city, capital of the province.

The four energy plants have contributed to the country's renewable energy capacity by 120 MW this year, and the country has a potential wind capacity of 1,100 gigawatts, according to the ministry.

The country, which enjoys more than 250 days of sunshine a year, has set a goal to make renewable energy use account for 20 percent by 2020 and 30 percent by 2030.

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Sharp builds mega solar plant in Zamyn Uud, Mongolia

Sharp Energy Solutions Corporation (SESJ) announces the completion of a mega solar power plant in Zamyn Uud, Dornogovi Province, Mongolia. The project was a collaboration with Shigemitsu Shoji Co., Ltd and Mongolian energy company Solar Tech LLC.

The new plant has an output of approximately 16.5 MW-dc, with annual power generation capacity estimated at 31,162 MWh/year. The output from this facility is expected to allow avoided greenhouse gas emissions of 24,836 t-CO2 per year.

Mongolia’s government is aiming for 25% of its power generation capacity to come from renewable sources. Back in December 2016, Sharp, in collaboration with Shigemitsu Shoji and others, completed a large-scale 10 MW-dc solar power plant. This was the first solar facility of its kind in Mongolia. Sharp remains committed to spreading renewable energy around the world.

Source:https://www.pv-magazine.com

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Mongolia’s largest solar park comes online

The 15 MW solar PV plant was built by a Japanese consortium led by Sharp, in the Economic Development Zone of Zamyn-Üüd, in the province of Dornogovi.

Mongolia’s Prime Minister, Ukhnaagiin Khürelsükh has commissioned a 15 MW solar power plant in the Economic Development Zone of Zamyn-Üüd, in the southeastern province of Dornogovi.

Mongolia is using solar to reduce its reliance old coal fired power stations.

Image: Government of Mongolia

According to the Mongolian government, the facility is the second operational PV facility installed in the country, and the largest to date.

It was built by a Japanese consortium formed by Shigemitsu Shoji Co. Ltd, a trading company mainly handling textiles such as towels and building materials, and electronics supplier and module manufacturer, Sharp Corporation in partnership with Mongolian investor, Solar Tech LLC.

The government added the plant was built with PV components that are resistant to the country’s extreme weather conditions, and that it is expected to generate around 32 million kWh per year. No more details on the project were provided.

Shigemitsu Shoji Co. Ltd and Sharp Corporation have also built another solar plant in the country, a 10 MW project located in the northern Mongolian city of Darkhan.

Construction on the project started in mid-July 2016, while it was completed in January 2018. The project was partly financed by funds from the Financing Programme for JCM Model Projects under the Joint Crediting Mechanism, which is operated by the Ministry of Environment of Japan – an initiative by the Japanese government to spread low carbon technologies to developing countries.

Sharp has taken the leading role in the Darkhan project, supplying PV modules, mounting structures and inverters, while also providing system design and engineering services.

Reduce reliance

Mongolia is using solar to reduce its reliance old coal fired power stations. The largest project under development is a 30 MW project, which is being financially supported by the European Bank for Reconstruction and Development (EBRD) and investment partners. According to EBRD, the four renewable energy projects it has now financed in Mongolia amount to US$114 million in investment and 180 MW of capacity – 16% of Mongolia’s total installed capacity.

Meanwhile, Chinese news agency Xinhua revealed that, on the top of the aforementioned 30 MW of projects, there is another 20 MW solar park under development in the country, and that all are planned to be located in the province of Dornogovi. Completion is scheduled for the end of this year.

Mongolia implemented a FIT scheme over the past year, which resulted in the allocation of around 200 MW of solar and 450 MW of wind power capacity. According to the World Bank, however, these arrangements “were made without proper consideration of the ability of the power grid to absorb this much variable power and without regard to the ability and willingness of electricity consumers to accept the necessary tariff increases.”

As a consequence, the World Bank explained, the licensed developers have run into difficulties in establishing their plants, leaving most licenses in limbo. The FIT granted for solar was $0.18/kWh.

Source:https://www.pv-magazine.com

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Mongolia to increase renewable energy capacity by 120 MW this year

Mongolia to increase renewable energy capacity by 120 MW this year Source: Xinhua   2018-06-23 19:54:41 ULAN BATOR, June 23 (Xinhua) -- Four renewable energy power plants with a total of 120 megawatts (MW) will be put into operation in Mongolia's southeast province of Dornogovi within this year, the provincial governor's office said Saturday. A solar power plant with capacity of 15 MW opened on Friday in Zamiin-Uud soum in Dornogovi province. Other two solar power plants with the capacity of producing 30 MW and 20 MW of electricity each will be put into operation by the end of this year in the province. A wind farm with a total capacity of 55 MW is planned to commission in late 2018 nearby Sainshand city, capital of the province. Mongolia, a landlocked country with a population of 3 million, enjoys more than 250 days of sunshine a year. The country's renewable energy capacity nearly doubled last year, reaching 155 MW, according to the Ministry of Energy. Mongolia's first large solar power plant, with a capacity of 10 MW, was installed in the country's northern province of Darkhan-Uul in January 2017. The country's second wind farm, the 50 MW Tsetsii Wind Farm, also opened in October that year. So far, Mongolia gets less than 5 percent of its power from renewable energy, including solar and wind. The government aims to make renewable energy use account for 20 percent by 2020 and 30 percent by 2030. According to Mongolia's Ministry of Energy, the country has a potential wind capacity of 1,100 gigawatts.

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Japan's Sharp to build Mongolia's second solar power plant

ULAN BATOR, May 25 (Xinhua) -- Japan's electronics giant Sharp Corp. will build Mongolia's second megawatt-level solar power plant in the country's northern province of Darkhan-Uul, local authorities said Friday.

According to the provincial governor's office, a groundbreaking ceremony for the construction of the solar power plant with a total capacity of 20 megawatts was held on Thursday in the province.

"The construction of the solar power plant will begin in the second half of this year. The project will be completed by the third quarter of 2019," it said in a statement.

Sharp will build the plant together with local Mongolian partner Darkhan-Selenge Electric Distribution Network LLC.

B. Batjargal, chief engineer of the Mongolian electric power company, said that the project will reduce carbon emissions by around 25,000 tons and save up to 355 million liters of water annually.

The landlocked Asian country with a population of just over three million enjoys more than 250 days of sunshine a year. Meanwhile, the country's renewable capacity nearly doubled last year, reaching 155 MW, the Ministry of Energy said.

The Japanese electronics producer installed Mongolia's first large solar power plant, with a capacity of 10 MW, in the province in January 2017. The country's second wind farm, the 50 MW Tsetsii Wind Farm, also opened in October of that year.

Mongolia seeks to provide sufficient heat and electricity for its population, especially in rural areas, and renewable energy projects are seen as a possible solution.

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Mongolia has huge potential to export renewable electricity across northeast Asia - says International Renewable Energy Agency

Mongolia’s mostly untapped renewable resources could be used to kick-start a major cross border power corridor between Russia, Mongolia, China, South Korea and Japan, according to a new study.

Excellent solar and wind resources in the Gobi Desert, some of which is in Mongolia and the rest in China, mean that the country has a vast renewable energy potential of 2.6TW, claimed the report ‘Renewables Readiness Assessment: Mongolia’ from the International Renewable Energy Agency (IRENA) and Mongolia’s Ministry of Energy.

Mongolia’s installed power-generation capacity is currently made up of just 7% from renewables, mainly from hydropower. However, the government has set a target of 20% renewable by 2023 and 30% by 2030. Having had to rely on Russian energy imports to cover short-term contingency needs and on China to power its southern towns, Mongolia aims to use its huge renewable resources to become a net exporter of energy in the future.

While the country neighbours Northern China, recent reports suggest that grid curtailment issues could hamper any meaningful exports of power from Mongolia to China at present. For example, China’s National Energy Administration (NEA) recently claimed that grid curtailment issues continue to plague some provinces with Gansu (31%) and Xinjiang (26%) particularly badly hit. These worst hit states also happen to border Mongolia. Solar developer United PV also reported last year that it had been impacted by grid limitations in Gansu.

However, Yong Chen, IRENA regional officer for Asia and the Pacific, told PV Tech: "The curtailment occurred in China was caused largely by lack of coordinated energy planning for renewable energy generation and grid development; [and secondly] institutional barriers. Both issues can be resolved. The Chinese government has already stepped up its effort in addressing the curtailment issues. Exporting renewable power from Mongolia to China is a long-term plan, while the curtailment issue would be addressed long before that."

Nevertheless, the IRENA report also details the potential for an Asian Super Grid (ASG) development and the ‘Gobitec intitiave’, which proposes to connect locations of high energy demand with the Gobi Desert via power corridors, however the ASG concept has been under discussion for a decade already. If undertaken it would connect Russia, Mongolia, China, South Korea and Japan, taking regional electricity markets in Europe and the Greater Mekong sub-region as precendents.

Chen said: "It is hard to speculate on how much time it would take, but it is certainly a long-term plan. It might take years to build political trust and to structure the project based on the feasibility studies that have yet to be done. Having said that, IRENA has recommended a step-by-step approach, starting with smaller projects in line with the strategic plan for developing the ASG.

"The Asian Development Bank – with support from China and South Korea, for instance – has approved a US$1.75 million technical assistance project to support the development of strategic action plans under the ASG concept. So, gradually we are seeing growing interest from the ASG countries."

The report said the ASG would bring increased energy security and cost advantages to the region with access to low-cost renewable-sourced electricity from Mongolia. It would also diversify Mongolia’s economy along with various environmental benefits.

However, the study claimed: “Due to the large geographical extent of the Gobi Desert region, along with the projected high upfront costs, the ASG project is facing an extraordinary set of technical and political challenges that hinder the progress of the project beyond its preliminary phase. Serious considerations of the technical, political, and socio-economic requirements, barriers, and implications must be carefully studied.”

Mongolia’s parliament recently adopted broad measures aimed at future sustainability including the Green Development Policy and the Law on Energy Conservation and Efficiency.

Zorigt Dashzeveg, minister of energy, said: “This new legislation enables Mongolia to provide energy security and reliability, improve energy efficiency, pursue public-private partnerships and create a market-oriented framework for the sector.”

IRENA also unveiled its 2016 REmap, a roadmap for doubling the world's share of renewable energy in the overall energy mix to 36% by 2030, at last week's Berlin Energy Transition Dialogue, an event promoting international cooperation and lessons learned from Germany's own Energiewende over the past 30 years.

Mongolia has 7% of its energy coming from renewables at present. Credit: NREL

Source:http://www.pv-tech.org/

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