A historic agreement has been signed between the Government of Mongolia and IFC, a member of the World Bank Group. The aim is to mobilize capital and expertise from the private sector to develop wind energy in the country.

IFC will act as the lead transaction advisor to the Department of Energy to prepare a comprehensive project due diligence and develop a public-private partnership (PPP) for an initial wind project of around 100 MW. Mongolia's heavy dependence on coal for energy and heating has made the energy sector the largest contributor to the country's greenhouse gas (GHG) emissions. This agreement is a first PPP launched by tender in Mongolia's renewable energy sector, which is expected to take a positive step in establishing competitive electricity rates, contribute to diversifying Mongolia's energy mix through increased renewable energy production, and provide a model for future independent power producers (IPPs) wind turbines in Mongolia.