EBRD approves $31.6 million loan for solar plant in Mongolia

• 5 years ago (2018-05-10)
• David Flin

Asia 847 Solar 243

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The European Bank for Reconstruction and Development (EBRD) has approved a $31.6 million loan to Desert Solar Power One (DSPO) to fund construction of a 30 MW solar power plant in Mongolia. The financing will support the construction and operation of the Bank’s first solar project in Mongolia.

The 30 MW solar PV power plant will become the first utility-scale solar PV plant in the country and will generate electricity during the day, when demand is higher than supply.

The syndicated financing package of $31.6 million will consist of an EBRD A loan of $10.5 million, a B loan from impact investor Triodos Investment Management and FMO Dutch Development Bank, who will each provide $10.5 million. The two ultimate shareholders of the borrower are United Green Group (UGG) and Tucher Group GmbH.

The EBRD was the original seed investor in the first ever renewable energy project in the country, the Salkhit wind farm, and financed three wind farms.

The project is in line with the EBRD’s Green Economy Transition (GET) approach, an initiative to promote sustainable energy and resource use. GET aims to dedicate 40 per cent of its annual investments to climate finance by 2020.