Ferrostaal Industrial Projects has secured a contract to develop 54 MW Sainshand Wind Farm in Mongolia.
The construction of the plant is expected to begin from next month onwards at a cost of $115 million approximately.
Once the farm is completed in 2016, it will be the largest one in the country with nearly 27 towers and 190 GWh of electricity every year.
The farm will deliver around 52 MW to the state-owned energy supplier National Power Transmission Grid, according to the power purchase agreement entered with Ferrostaal.
In addition, the company has also entered into an engineering procurement and construction term sheets for the work on the park.
The project site at Sainshand is located in Mongolia’s Gobi Desert, having one-year wind measurements of 7.4 meters per second.
Mongolia is dependent on coal-fired power plants for its power requirements and now wants to implement renewable measures to expand green energy portfolio.
The country has kept a target of achieving 20 percent energy production from renewables by 2020.
In 2013 Mongolia opened its first wind farm, a 50 MW facility at Salkhit.
Mongolia is estimated by the National Renewable Energy Laboratory to have good-to-excellent wind resources of over 2,550 terawatt-hours per year.
The Ferrostaal has arranged financial grant from leading international development banks on a 70 percent debt and 30 percent equity basis.
In another development, Ventinveste, a consortium of Portugal’s major energy and engineering companies, and Ferrostaal secured 220 million Euros of investment for a new wind farm project located in the North and central Portugal.
Project Âncora will consist of four wind farms with a total capacity of 171.6 MW, enough to power 125,000 homes.