Mongolia : First Utility-Scale Energy Storage Project
The project is aligned with the government medium and long term renewable energy target: (i) 100 MW of power storage installed to the CES to increase renewable energy power generation and reduce coal fired power generation in the Medium Term National Energy Policy (20182023) and (ii) renewable energy capacity increased to 20% of total generation capacity by 2023 and 30% by 2030 in the State Policy on Energy (20152030) and in Mongolia Nationally Determined Contribution in 2015. The proposed project is included in the Country Operations Business Plan for Mongolia (2020-2021). The outcome targets of the proposed project are (i) 610 GWh of annual renewable power evacuated; (ii) 44 GWh of annual imported peak time electricity reduced; and (iii) at least 650,000 tons of CO2 emissions avoided per year.
These outcome will be achieved through the following outputs: (i) large scale advanced battery storage system installed, and (ii) institutional and organizational capacity enhanced.
Project Details
-
Project Officer
Zhang, Lei
Sectors Group
Request for information -
Country/Economy
Mongolia -
Sector
- Energy
| Project Name | First Utility-Scale Energy Storage Project | ||||||||
| Project Number | 53249-001 | ||||||||
| Country / Economy | Mongolia |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Grant Loan |
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| Source of Funding / Amount |
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| Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP6: Strengthening governance and institutional capacity |
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| Sector / Subsector | Energy / Electricity transmission and distribution - Energy efficiency and conservation - Renewable energy generation - solar - Renewable energy generation - wind |
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| Gender | Effective gender mainstreaming | ||||||||
| Description | The project is aligned with the government medium and long term renewable energy target: (i) 100 MW of power storage installed to the CES to increase renewable energy power generation and reduce coal fired power generation in the Medium Term National Energy Policy (20182023) and (ii) renewable energy capacity increased to 20% of total generation capacity by 2023 and 30% by 2030 in the State Policy on Energy (20152030) and in Mongolia Nationally Determined Contribution in 2015. The proposed project is included in the Country Operations Business Plan for Mongolia (2020-2021). The outcome targets of the proposed project are (i) 610 GWh of annual renewable power evacuated; (ii) 44 GWh of annual imported peak time electricity reduced; and (iii) at least 650,000 tons of CO2 emissions avoided per year. These outcome will be achieved through the following outputs: (i) large scale advanced battery storage system installed, and (ii) institutional and organizational capacity enhanced. |
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| Project Rationale and Linkage to Country/Regional Strategy | The proposed project aims to install large scale battery storage system in the central energy system (CES) grid to absorb fluctuating renewable energy electricity which is otherwise to be curtailed to meet growing power demand in the CES. | ||||||||
| Impact | Renewable energy capacity increased to 20% of total generation capacity by 2023 and 30% by 2030. |
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| Project Outcome | |
|---|---|
| Description of Outcome | Renewable electricity penetration increased. |
| Progress Toward Outcome | This will be assessed at project completion. |
| Implementation Progress | |
| Description of Project Outputs | Large scale advanced battery energy storage system installed Institutional and organizational capacity enhanced |
| Status of Implementation Progress (Outputs, Activities, and Issues) | (i) As of 30 Jun 2023, design work was done (100%). Construction work is in progress (34%). (ii) The training for the 30 engineers will begin during construction work (between Sep to October 2023). The training of 120 female engineers was completed in October 2022. |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | Category B for environment. During preconstruction and construction, contractors will be required to comply with the EMP, which will be updated as necessary if unanticipated impacts are identified during implementation. |
| Involuntary Resettlement | Category C for involuntary resettlement. |
| Indigenous Peoples | Category C for indigenous peoples. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Public consultation meetings, interviews, and focus group discussions have been conducted. |
| During Project Implementation | Project information will be communicated through public consultation meetings, interviews, focus group discussions and, information will be disclosed on ADB's and government's website, in accordance with ADB's requirements of public communications policy. Consultations with communities have taken place and will continue through the project implementation. Special attention will be paid for women's participation including other vulnerable groups, such as the poor during further consultation. |
| Business Opportunities | |
|---|---|
| Consulting Services | All procurement of goods, works and consulting services will be undertaken in accordance with ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). |
| Procurement | All procurement of goods, works and consulting services will be undertaken in accordance with ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). |
| Responsible ADB Officer | Zhang, Lei |
| Responsible ADB Department | Sectors Group |
| Responsible ADB Division | Energy Sector Office (SG-ENE) |
| Executing Agencies |
Ministry of Energy |
| Timetable | |
|---|---|
| Concept Clearance | 23 Oct 2019 |
| Fact Finding | 11 Nov 2019 to 20 Nov 2019 |
| MRM | 28 Jan 2020 |
| Approval | 22 Apr 2020 |
| Last Review Mission | - |
| Last PDS Update | 29 Sep 2023 |
Grant 0696-MON
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 22 Apr 2020 | 14 May 2020 | 17 Jun 2020 | 31 Mar 2025 | - | - |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 3.00 | Cumulative Contract Awards | |||
| ADB | 0.00 | 27 Nov 2023 | 0.00 | 3.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 3.00 | 27 Nov 2023 | 0.00 | 2.90 | 97% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | - | Satisfactory | Satisfactory | Satisfactory |
Loan 3874-MON
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 22 Apr 2020 | 14 May 2020 | 17 Jun 2020 | 31 Mar 2025 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 111.95 | Cumulative Contract Awards | |||
| ADB | 100.00 | 27 Nov 2023 | 80.95 | 0.00 | 81% |
| Counterpart | 11.95 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 27 Nov 2023 | 32.24 | 0.00 | 32% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | - | Satisfactory | Satisfactory | Satisfactory |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
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ADB and the Government of Mongolia today signed two loans to mitigate the severe health and economic impacts of the COVID-19 pandemic and one to install the country’s first large-scale advanced battery energy storage system.ADB Accelerating Renewable Energy in Mongolia with Advanced Battery Storage System
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Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| Design, supply, installation and commissioning of 80 MW/200 MWH Battery Storage System (BESS) plus 2 years of start-up operation support | Loan 3874 | 11 Aug 2022 | Consortium of Jiangsu Zhongtian Technology Co., Ltd. and Zhongtian Energy Storage Technology Co., Ltd. | Zhongtian Village, Hekou Town, Rudong County, Jiangsu Province, People's Republic of China | Ministry of Energy | 80,925,419.15 | 78,425,419.15 |
| PROJECT MANAGEMENT CONSULTANT (INTERNATIONAL FIRM) | Loan 3874 | 10 Sep 2021 | RWE TECHNOLOGY INTERNATIONAL GMBH | 45141 ESSEN GERMANY | Ministry of Energy | 1,727,659.00 | 1,407,659.00 |
| PROJECT MANAGEMENT CONSULTANT (INTERNATIONAL FIRM) | Grant 0696 | 16 Jun 2021 | RWE TECHNOLOGY INTERNATIONAL GMBH | 45141 ESSEN GERMANY | Ministry of Energy | 320,000.00 | — |
| PROJECT MANAGEMENT CONSULTANT (INTERNATIONAL FIRM) | Loan 3874 | 25 Jun 2021 | RWE TECHNOLOGY INTERNATIONAL GMBH | 45141 ESSEN GERMANY | Ministry of Energy | 1,600,000.00 | 1,407,659.00 |
| GRID DISPATCHING SPECIALIST, NATIONAL INDIVIDUAL C ONSULTANT | Loan 3874 | 11 Dec 2020 | BAZARRAGCHAA AYUSHJAV | #52-56,20TH KHOROO, KHAN-UUL DISTRICT, ULAANBAATAR MONGOLIA MONGOLIA | Ministry of Energy | 120,000.00 | 120,000.00 |
| FINANCIAL MANAGEMENT AND AUDIT OFFICER, NATIONAL I NDIVIDUAL CONSULTANT | Loan 3874 | 11 Dec 2020 | BILEGDEMBEREL JARGALSAIKHAN | #48-81,14TH KHOROO,BAYANZURKH DISTRICT, ULAANBAATAR MONGOLIA MONGOLIA | Ministry of Energy | 120,000.00 | 120,000.00 |
| PMU STAFF - PROCUREMENT/CONTRACT OFFICER | Loan 3874 | 26 Aug 2020 | OYUNGEREL TSEREN | MONGOLIA MONGOLIA | Ministry of Energy | 120,000.00 | 120,000.00 |
| PMU STAFF-MONITORING AND EVALUATION/ENVIRONMENTAL OFFICER | Loan 3874 | 26 Aug 2020 | NASANJARGAL NARANBAT | 29-1-62,ESUN-ERDENE TOWN,ENGELS STREET ,3RD KHOROO,ULAANBAATAR MONGOLIA MONGOLIA | Ministry of Energy | 120,000.00 | 120,000.00 |
| PMU STAFF- HIGH AND MEDIUM- VOLTAGE ELECTRICAL ENGINEER | Loan 3874 | 26 Aug 2020 | BILGUUN BATTUYA | NARNII KHOROOLOL, 22-204, KHOROO 3, BAYA NGOL DISTRICT,ULANBAATAR,MONGOLIA MONGOLIA | Ministry of Energy | 120,000.00 | 120,000.00 |
| PMU STAFF-BATTERY ENERGY STORAGE SYSTEM SPECIALIST | Loan 3874 | 26 Aug 2020 | AMARSAIKHAN TSOODOL | APARTMENT 52,DOOR 58,20TH KHOROO, KHAN-U UL DISTRICT,ULAANBAATAR, MONGOLIA MONGOLIA | Ministry of Energy | 120,000.00 | 120,000.00 |
| PROJECT COORDINATOR (PMU SUPPORT) | Loan 3874 | 14 Jul 2020 | NARANBAT MENDSAIKHAN | ULAANBAATAR, MONGOLIA MONGOLIA MONGOLIA | Ministry of Energy | 120,000.00 | 120,000.00 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| First Utility-Scale Energy Storage Project: Procurement Plan | Procurement Plans | May 2022 |