World Bank approves USD78 million project to strengthen Mongolia’s transmission grid

The World Bank has approved financing for Mongolia’s Fourth Energy Sector project, which aims to enhance the reliability and capacity of the country’s central energy system (CES) transmission grid while advancing integration of renewable energy sources.

The project includes the construction of a 220 kV transmission line linking the existing Mandal substation with the new Uvurkhangai substation, as well as expansion and development works at substations in Mandalgovi, Arvaikheer and Bayankhongor. It will also involve associated 110 kV connection lines to strengthen regional power delivery and resilience. The USD78 million funding is provided through the World Bank’s International Bank for Reconstruction and Development and will add 590 MW of transmission capacity, reduce outages by 50 per cent in the affected areas, and facilitate the integration of approximately 150 MW of solar and wind power into the national grid.