Ferrostaal Set to Begin Work on Mongolia’s Biggest Wind FarmMichael Kohn
Ferrostaal Industrial Projects GmbH will begin construction of its Sainshand Wind Farm in April, slated to be Mongolia’s largest when it is completed in 2016, according to a company statement published Tuesday.
The $115 million park will have 27 towers and an installed capacity of 54 megawatts. It will deliver 52 megawatts to Mongolia’s electrical grid, Oliver Schnorr, director of Sainshand Wind Park LLC, said in a text message.
Mongolia is seeking to diversify its energy supplies, now heavily reliant on coal-fired power plants, with a goal of increasing its energy production from renewables to 20 percent by 2020.
In 2013 Mongolia opened its first wind farm, a 50 megawatt facility at Salkhit, about 70 kilometers (44 miles) south of Ulaanbaatar.
The site at Sainshand, located in Mongolia’s Gobi Desert about 460 kilometers southeast of Ulaanbaatar, has one-year wind measurements of 7.4 meters per second, according to the statement.
A bankable power purchase agreement for the park has been signed with the state-owned energy supplier, the National Power Transmission Grid Co., according to the statement from Ferrostaal, which is based in Essen, Germany.
Engineering procurement and construction term sheets for the work on the park have also been signed.
The financial close arranged by Ferrostaal Capital GmbH is expected “within the next few months,” according to the statement, with financing by leading international development banks.
“We go on 70 percent debt and 30 percent equity,” Schnorr said. “The equity is majority from us.”
The company hasn’t closed on debt finance, which may come from development banks such as the European Investment Bank and also Overseas Private Investment Corp. in the U.S., which are the “typical development banks that are looking for renewable energy financing.”