Clean Energy is currently 75 percent owned by Newcom and 25 percent owned by the bank. The bank will also take a further $4.4 million equity stake in Clean Energy.
"The Salkhit wind farm is a flagship project for Mongolia’s renewable energy. It marks the dawn for Mongolia’s aspiration to becoming Asia’s renewable energy champion," said Bayanjargal Byambasaikhan, chief executive of Newcom.
Located about 70 kilometers away from the capital Ulaanbaatar, Salkhit will generate enough current to answer about 5 percent of the country’s needs while achieving a carbon dioxide emission reduction of approximately 164,000 metric tons annually.
The wind turbines project will also generate carbon credits that Clean Energy can sell.
General Electric will be providing the wind turbines for Salkhit. The site is expected to come online this year.
According to Nandita Parshad, the bank’s director for power and energy, Mongolia has strong winds which can be tapped to diversify the country’s energy mix.
"We hope this transaction paves the way for increased private interest in the renewable power sector which can reduce Mongolia’s dependence on coal and its carbon footprint and will contribute to Mongolia’s sustainable development," said Ms. Parshad.
Mongolia’s current installed renewable energy capacity is around 800 MW. The Salkhit project will be the first significant renewable energy generator in the country.