EBRD Invests in Mongolia renewable energy investment Projects
Mongolia, a nation with vast open steppes and some of the highest solar irradiation levels in the world, is at a critical juncture in its energy journey. Traditionally dependent on coal, the country is now making significant strides towards a cleaner, more sustainable future, thanks in large part to strategic investments from the European Bank for Reconstruction and Development (EBRD). The EBRD has become a pivotal partner in helping Mongolia unlock its immense renewable potential, diversify its energy mix, and meet its climate commitments.
This post delves into the key projects and broader initiatives fueled by EBRD financing, highlighting the tangible impact on Mongolia’s energy landscape.
Major Projects Driving the Green Transition with Mongolia renewable energy investment
The EBRD’s commitment is most visible in several large-scale renewable energy projects that are already transforming the country’s power grid.
Sukhbaatar Solar Power Plant (51 MW)
As Mongolia’s first utility-scale solar plant, the Sukhbaatar project was a landmark achievement. The EBRD provided a €46.4 million loan as part of a comprehensive financing package in 2021. Developed by Globeleq and Solar Power International Mongolia, the plant became operational in 2023. It now generates enough clean electricity to power approximately 35,000 households, significantly reducing the country’s carbon footprint by an estimated 65,000 tons of CO2 annually.
Choir Wind Farm (100 MW)
Building on its solar investments, the EBRD committed €50 million in debt financing for the Choir Wind Farm in 2023. This project, jointly developed with Masdar and local partners, is a testament to the growing investor confidence in Mongolia’s wind sector. Once completed, the wind farm is expected to power around 100,000 homes, further diversifying the energy supply and strengthening the national grid.
Tavan Tolgoi Solar Plant (10 MW)
Demonstrating a strategic approach to decarbonization, the EBRD financed the Tavan Tolgoi solar project with a €10 million loan in 2022. Now operational, this plant is located near a major coal mine, serving to directly offset the emissions from mining operations—a creative and impactful application of renewable technology.
A Broader Framework for Green Growth through Mongolia renewable energy investment
Beyond these flagship projects, the EBRD’s support extends to fostering a wider ecosystem for green finance and technology adoption through its Green Economy Financing Facility (GEFF).
Launched in 2019 with an initial €20 million, the GEFF in Mongolia has since expanded to over €50 million. This facility provides crucial funding for residential and commercial solar and wind installations, promotes the construction of energy-efficient buildings, and supports essential grid upgrades. To date, the GEFF has enabled over 1,000 sub-projects, mobilizing a total investment of more than €100 million and empowering smaller players to participate in the green transition.
The Strategic Impact and National Context of Mongolia renewable energy investment
The EBRD’s investments are not isolated; they are deeply integrated with Mongolia’s national strategy. The country’s National Renewable Energy Program aims to achieve a 30% share of renewables in its energy mix by 2030, a goal that these projects directly support.
According to the EBRD’s regional reports, the bank has invested over €300 million in Mongolia’s renewable sector since 2018. These efforts have been instrumental in tackling long-standing challenges, including grid instability and high transmission losses. Critically, this has helped reduce the nation’s reliance on coal from over 90% of power generation in 2020 to approximately 75% by 2025.
The outcomes are clear: these projects have added around 200 MW of clean capacity to the grid, avoiding over 300,000 tons of CO2 emissions per year. Furthermore, they have created vital local employment, with an estimated 1,500 jobs during construction phases, and have helped build domestic expertise in renewable energy technology.
Looking Ahead: The Future of Mongolia’s Energy and renewable energy investment
The EBRD’s commitment is ongoing. The bank is currently exploring a pioneering 250 MW hybrid solar-wind-battery project in the Gobi Desert, with feasibility studies funded in 2025. Recognizing that new generation capacity requires a robust grid, the EBRD also approved €30 million in 2025 for grid modernization projects specifically designed to handle the intermittent nature of renewables.
Through a combination of large-scale project financing, strategic policy alignment, and broad-based support facilities, the EBRD is playing an undeniable role in powering Mongolia’s sustainable future.
For the latest information on these initiatives, interested parties can refer to the official projects page on the EBRD’s website (ebrd.com/work-with-us/projects) and publications from Mongolia’s Ministry of Energy.
