ADB helps finance $115m battery energy storage system in Mongolia
The Asian Development Bank has approved a $100 million loan to help supply renewable energy to Mongolia by installing its first large-scale advanced battery energy storage system (BESS).
The project will install 125MW of advanced BESS, making it among the largest battery storage systems globally. The BESS will be resilient to Mongolia’s extremely cold climate and equipped with a battery energy management system enabling it to be charged entirely by renewable electricity. This will then discharge clean electricity to supply peaking power in the central energy system grid. The project will also provide regulation reserve to integrate additional renewable energy capacity in the transmission grid.
The total cost of the project is $114.95 million, of which $3 million is cofinanced by a grant from ADB’s High Level Technology Fund, financed by the Government of Japan. The government of Mongolia will provide $11.95 million toward the cost of the project, which is due for completion in September 2024.
The country’s renewable energy capacity will be increased, supplying 44 gigawatt-hours of clean peaking power annually on completion. The project will support the integration of an additional 859 gigawatt-hours of renewable electricity into the energy system grid, avoiding 842,039 tons of carbon dioxide emissions annually by 2025.
