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 is expected to 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. The $78 million funding will be provided through the World Bank’s International Bank for Reconstruction and Development (IBRD).
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 funding will support measures to improve access to reliable electricity for about 200,000 people across the central and western regions.
Climate-resilient design and construction measures will be incorporated to ensure the longevity of transmission and substation infrastructure under extreme weather conditions. Aligned with Mongolia’s New Recovery Policy and Government Action Plan (2024-28), the initiative forms part of the World Bank’s ‘Accelerating sustainable energy transition multi-phase programmatic approach’ for East Asia and the Pacific, which aims to scale up renewable energy grid integration across participating countries.