ADB Provides Grant to Build Renewable Energy Heating Systems in Mongolia

The Asian Development Bank (ADB) and the Government of Mongolia signed a US$2 million grant to increase efficient and renewable energy heating systems in remote areas in Mongolia.

Mongolia has taken steps to increase the share of renewable energy in its power supply. However, the majority of Mongolians still use coal as their main heat source, either through coal-fired plants, boilers, or household stoves. These methods have led to high levels of unhealthy air pollutants and greenhouse gas emissions.

ADB will administer the US$2 million grant financing from the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR), which has supported projects in Mongolia in poverty alleviation, livelihood improvement, and environment safeguards over the past 20 years. JFPR is funded by the Government of Japan.

“Adequate heat supply is vital in Mongolia, which can experience extreme low temperatures of -40 degrees Celsius or below,” said ADB Principal Energy Specialist for East Asia Shannon Cowlin.

“The project will not only improve air quality with significant impact to public health. It will also demonstrate the viability of renewable heating systems in Mongolia’s rural areas and build capacity among leaders and the community to reduce coal usage.”

The $2 million grant will support the design, procurement, and installation of more sustainable heating systems in the country. The project will focus on hospitals and health care centers in soum centers—Mongolian pasturelands—as they are critical for the community and have continuous heating and hot water requirements. The buildings will also be retrofitted with energy efficiency measures to reduce heating demand.

The project aims to spread awareness on the value of efficiency measures and cleaner heating systems, as well as ways to install and maintain them, among government officials and heating technicians. The project will also train community members—in particular, women—on measures that can be adopted in residences to reduce residential coal use and associated emissions.

The project will be completed by 2025.

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