The European Bank for Reconstruction & Development (EBRD) and the Japan International Cooperation Agency (JICA) have signed financing agreements with Clean Energy Asia to support the construction of the 50MW Tsetsii wind farm in southern Mongolia.

Clean Energy Asia is 51%-owned by Mongolian conglomerate Newcom, while the rest of the shares are held by a subsidiary of SB Energy.

The plant, which will be built in the Tsogttsetsii district, will feature 25 units of 2MW turbines.

The deal is the first dollar-denominated project finance debt transaction by JICA via its private sector investment finance scheme in renewable energy.

It is Newcom and EBRD's second renewable energy project in Mongolia following the 50MW Salkhit wind farm, which started its operations in 2013.

SB Energy chairman & CEO Masayoshi Son said: “This project marks the first step to develop renewable energy in Mongolia for the SoftBank Group.

“Power generated from the wind farm will supply electricity in Mongolia by connecting to its domestic grid, and I believe the project will help contribute to the stable supply of power for the nation.”

Mongolia approved a national power policy in 2015 that includes targets for a renewables share of 20% by 2020 and of 30% by 2030.

The country ahs already signed a memorandum with Japan on the Joint Crediting Mechanism (JCM) to reduce greenhouse gas emissions.

EBRD has so far invested EUR1.4bn in the Mongolian private sector.