The European Bank for Reconstruction and Development (EBRD) is improving the flexibility and reliability of the electrical grid in Mongolia and increasing its ability to absorb energy produced by renewable sources.

An EBRD sovereign loan of up to 62.8 million dollar and capital grant of up to 5 million euro will help build and commission a 220-kilometre double-circuit 220kV transmission line between the towns of Sainshand and Choir. They will also fund a new 220/110/35 kV substation in Sainshand and increase the capacity of a similar substation in Choir. The project is also being supported by the European Union (EU) Asia and Pacific Investment Facility, which is expected to provide a capital grant of up to 8 million euro.

The project will contribute to the decarbonization of Mongolia, where fossil fuel-based power generation remains dominant. Once up and running, the transmission line will help cut annual CO₂ emissions by 140,000 tonnes by reducing electricity transmission losses and increasing the absorption of renewable energy.

Within the context of the project, Mongolia will develop a new training program that will enable young women and men to gain electrical engineering skills, boosting their employment opportunities.

To date, the EBRD has invested almost 2.2 billion euro in Mongolia’s economy through 126 projects.