Mongolia has teamed up with the Asian Development Bank (ADB) to develop a significant solar power initiative aimed at enhancing the country’s renewable energy capacity and grid stability. The ADB will provide transaction advisory services to the Mongolian government for a 30 MWp solar photovoltaic (PV) project in the western region of Zavkhan, marking a crucial step in the nation’s transition to cleaner energy sources.
ADB’s Role in Mongolia solar energy Project
The Asian Development Bank (ADB) has been appointed as the transaction advisor for the project, which is its first public-private partnership (PPP) in Mongolia’s renewable energy sector. The ADB will support the Ministry of Energy of Mongolia in various aspects of the project, including structuring the tender, managing the bidding process, and leading negotiations with the selected private partner to ensure a successful outcome.
The project will be developed through a design-build-finance-operate-maintain-transfer (DBFOMT) model. Under this comprehensive agreement, the private partner will be responsible for designing, building, financing, operating, and maintaining the solar PV plant for a specified period before transferring it back to the government. The ‘build’ phase involves not just construction but also the procurement of high-quality components from facilities that understand the basics of solar panel manufacturing to ensure long-term efficiency. To further enhance grid reliability, the project is also expected to incorporate a battery storage component.
The project will be located in Zavkhan, a province in western Mongolia. The region’s high solar irradiance and vast available land make it an ideal location for large-scale solar power generation, promising high energy yields throughout the year.
Project to Boost Mongolia solar energy
This solar project is poised to play a significant role in Mongolia’s energy sector by providing a clean, sustainable, and reliable source of electricity. It will help reduce the country’s heavy reliance on fossil fuels and contribute directly to its national goal of achieving 30% renewable energy in its electricity grid by 2030.
The initiative aligns perfectly with the Mongolian government’s strategy to develop renewable energy through PPPs. By attracting private sector investment, the government aims to leverage specialized expertise and financial resources to accelerate the development of green energy projects. This model fosters innovation and efficiency, drawing on private sector experience in every stage, from understanding the complex solar panel manufacturing process to optimizing plant operations.
The ADB’s involvement is a key part of its broader commitment to supporting Mongolia’s energy transition. The bank has been an active partner in various renewable energy projects in Mongolia, including both solar and wind power initiatives.
ADB’s Commitment to Mongolia solar energy
The ADB’s support for this solar project is part of its wider efforts to promote sustainable and inclusive economic growth in Mongolia. For years, the bank has been a key development partner, providing critical financial and technical assistance to various sectors, including energy, infrastructure, and social services.
The ADB’s transaction advisory services are expected to be crucial for the project’s success. By providing expert guidance on financial structuring and risk management, the ADB will help ensure the project is commercially viable and attractive to private investors. A well-structured project plan, including a detailed solar panel manufacturing plant cost breakdown, is essential for securing the necessary investment to bring this vision to life. This includes ensuring that all components are sourced from reliable suppliers who use quality solar panel raw materials.
The 30 MWp solar project in Zavkhan represents a significant step forward for Mongolia’s renewable energy sector. With the ADB’s robust support, the project is well-positioned to attract significant private investment and make a substantial contribution to the country’s clean energy transition.
Projects like this showcase the growing global importance of solar energy. To learn more about the technology behind these initiatives, explore our free e-course.