The Mongolian electrical grid’s versatility, dependability, and capacity to absorb electricity from renewable sources are all being improved by the European Bank for Reconstruction and Development (EBRD), the bank said in a press release.
The 220-kilometer double-circuit 220kV transmission lines between the towns of Sainshand and Choir will be built and put into service with the aid of an EBRD government loan of up to US$ 62.8 million and a capital grant of up to €5 million.
Additionally, the transmission lines will expand the capacity of a comparable substation in Choir and fund a new 220/110/35 kV substation in Sainshand. On top of that, the European Union (EU) Asia and Pacific Investment Facility is supporting the project with a capital grant of up to €8 million.
Fossil fuel-based electricity production still dominates in Mongolia, however, this initiative will help the country become more carbon-neutral. Once operational, the transmission line will reduce power transmission losses and boost the use of renewable energy, assisting in a 140,000-ton reduction in yearly CO2 emissions.
A new education program for young men and women in electrical engineering will be created in Mongolia as part of the initiative, increasing their career prospects.
Through 126 initiatives, the EBRD has so far contributed over €2.2 billion to the Mongolian economy.
