The World Bank has approved a new project aimed at improving the reliability and security of Mongolia’s electricity services. The initiative, called the Fourth Energy Sector Project, is intended to enhance the capacity and dependability of the Central Energy System’s transmission grid and promote the use of renewable energy sources.
World Bank Country Manager for Mongolia Taehyun Lee stated, “The World Bank is pleased to continue supporting the Government of Mongolia in its efforts to strengthen the reliability and sustainability of the country’s electricity system. This project will help advance Mongolia’s low-carbon development goals while supporting inclusive economic growth and job creation.”
The project aligns with Mongolia’s New Recovery Policy and Government Action Plan for 2024-2028. It includes constructing a 220 kV transmission line from Mandal Substation to a new substation in Uvurkhangai, expanding substations in Mandalgovi, Arvaikheer, and Bayankhongor, as well as building related 110kV connection lines.
These developments are projected to provide more reliable electricity access for approximately 200,000 people in Mongolia's Central and Western Regions. The increased transmission capacity—over 590MW—is expected to reduce outages by about half in affected areas and support integration of around 150MW of wind and solar photovoltaic energy into the grid. Climate resilience measures will be incorporated during construction.
Funding for the Fourth Energy Sector Project comes from a US$78 million loan provided by the World Bank’s International Bank for Reconstruction and Development. The project forms part of a broader World Bank initiative designed to accelerate renewable energy adoption across East Asia and the Pacific region.