With long-term financing provided by EIB and EBRD, the Sainshand wind farm is being sponsored by French energy company Engie and German project developer Ferrostaal, Danish Climate Investment Fund (DCIF) and Mongolian entrepreneur, Radnaabazar Davaanyam.
As per the financing, the lenders have agreed to provide a total project financing of $78.5m, which includes EIB’s funding of $47m and EBRD’s funding of $31.5m.
When operational, the wind farm will use 25 of Vestas’ V110-2.2MW turbines which generate up to 55MW of clean energy. The wind farm can help to offset about 200,000 tonnes of carbon dioxide emissions per year, had the electricity been generated using traditional fossil fuels.
China Machinery Engineering Corporation (CMEC) has been assigned with the engineering, procurement and construction (EPC) contract for the wind farm. It could be completed and operational by the end of 2018.
EBRD Energy and Natural Resources Managing Director Nandita Parshad said: “Since the seed investment in the first Mongolian wind farm in 2009, the EBRD has been a staunch supporter of renewable energy development in the country, providing policy advice, technical assistance and financing for every wind project so far. Sainshand is our third wind farm project in Mongolia, and I am especially pleased to see new investors come to this promising sector.”
EIB Vice President Jonathan Taylor said: “The European Investment Bank is committed to supporting climate-related investment across Asia and is pleased to support development of wind power in Mongolia, which provides an alternative to coal use. The Sainshand wind farm will use world-class technology and demonstrate that wind power can be successfully harnessed in remote regions facing a harsh climate.”
The wind farm is expected to significantly reduce Mongolia’s carbon emissions, while providing clean power to its people. The country has set a goal of generating at least 20% of its energy needs from renewable sources by 2020 and 30% by 2030.
Image: Mangolian wind farm closes financing. Photo: Courtesy of European Bank for Reconstruction and Development.
