Last week General Electric (GE) announced it had signed an agreement with Newcom LLC to provide Mongolia with the technology and supplies to start building its first wind farm. Located some 70 kilometres from the nations capital, the 100 million dollar project is set to finish sometime in 2012. The Salkhit Wind Farm will have an initial installed capacity of 50 MW and will feed into Mongolia’s Central Energy System.
Newcom is one of the leading investment companies in Mongolia, and it was only in 2010 that the two companies signed a ‘memorandum of understanding’ that would see GE and Newcom search for alliances in key areas such as energy, water, mining, aviation, railway, lighting, and healthcare.
“This is a milestone in the development of GE’s relationship with Mongolia and our teaming with Newcom,” said Vice Chairman and CEO of GE’s Global Growth & Operations John Rice. “We are introducing advanced technology that paves the way for renewable energy projects and underscoring our commitment to grow in one of the most challenging yet fastest-growing emerging regions.”
With energy demand in Mongolia increasing by 8 to 10 percent a year, the project will help support Mongolia’s growing demand for electricity and also help facilitate further infrastructure development for railway, road and electrical infrastructure.
Mongolia is looking to expand its renewable energy share to 20 – 25 percent by 2020, increasing from its current capacity of approximately 800 megawatts (MW). Already one of the fastest growing economies in the world, recording the highest growth in the world at 17.3 percent year on year by the first half of 2011, according to the World Bank, Mongolia’s energy demand is expected to double by 2015.