A consortium of JGC Holdings, NGK Insulators Ltd, and MCS International LLC has been awarded a contract for the construction of Mongolia’s first solar power generation project with a battery energy storage system with a capacity of 5MW. Golomt Bank, in cooperation with Mizuho Bank of Japan, has issued a bank guarantee for this project in accordance with the requirements for large infrastructure projects. Guaranteeing the construction of solar power plants in the country is an important part of Golomt Bank’s commitment to environmentally friendly and sustainable financing.

Construction of the solar power plant will begin this month in Uliastai soum, Zavkhan province, 1,100 km west of Ulaanbaatar, and is scheduled to begin in the spring of 2022. This is Mongolia’s first major development and is considered to be a high-priority project to meet the energy needs of about 20,000 residents of Uliastai soum.

Although Mongolia is making progress towards achieving a 30 percent share of domestic renewable energy consumption by 2030, the lack of a renewable energy storage facility has remained a challenge. The solution to this problem is to build the first solar-powered solar power plant in Mongolia, a country that depends on coal-fired power plants, increase renewable energy consumption and energy supply in Mongolia, which is a problem of air pollution, and reduce carbon dioxide emissions.

NGK Insulators Ltd will produce the storage tank, which is suitable for Mongolia’s climate, with temperatures reaching -40 degrees Celsius in winter, while MCS International will build the plant and support the operating activities after its construction for a certain period of time.

The importance of the project is reported by the project partner JGC Holdings on its website. https://www.jgc.com/en/news/2021/20210322.html