Mongolia’s 55-MW Sainshand wind farm has successfully achieved financial close, with the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB)and Denmark’s Export Credit Agency (EKF) providing US$120 million of project financing.
The privately owned wind farm is to be developed by France’s Engie, Germany’s Ferrostaal, the Danish Climate Investment Fund (DCIF) and Mongolian businessman Radnaabazar Davaanyam.
The lenders have agreed to provide a total project financing of US$78.5 million, which comprises EIB funding of US$47 million, of which the first tranche will be guaranteed by EKF, with NORD/LB bank acting as agent.
The EBRD is separately to provide the remaining funding of US$31.5 million.
The facility is to be built 7 km west of Sainshand in Mongolia’s Gobi Desert. Construction is to begin in 2017 is expected to finish in 2019.
The wind farm will feature 25 2.2-MW Vestas generators, while the scheme’s output will be transmitted to an on-site substation.
There, the voltage will be increased from 35 kV to 110 kV by a transformer before being transported to the grid connection point via a 4-km transmission line.
Once operational, the wind farm is expected to generate 190 million kWh per year.
The wind farm will be built by China Machinery Engineering Corporation (CMEC) as the engineering, procurement and construction (EPC) contractor.
Mott MacDonald was the lenders’ technical, environmental and social advisor during the scheme’s financing stage and will now monitor construction and operations.
The consultancy also undertook environmental and social impact assessments and analysed how the corresponding plans would feed into the financial model.
Matthias Vinard, Mott MacDonald’s project director, said: “Under its national power policy, Mongolia is aiming for a 20% renewable share of the energy mix by 2020 and 30% by 2030. Sainshand will help to diversify the country’s energy sources, reducing dependence on coal and deceasing CO2 emissions by up to five million tons over its lifetime.”
“Sainshand will be the country’s third commercial-scale wind farm and our experience on the first two has been significantly useful in understanding the country-specific challenges being faced, such s grid integration,” Matthias added.