AKIPRESS.COM - The government of Mongolia has sealed a deal to receive grant financing from the European Union (EU) to partly fund the construction of new transmission infrastructure that will promote the further penetration of renewables in the East Asian country, Renewables Now reported.

Specifically, the EU is providing 8.4 million euros ($9.2 million) grant for the Choir-Sainshand Transmission Line Project as part of 79.7 million euros funding package dedicated to energy infrastructure in the country, the EU's press office said on Tuesday.

Apart from the EU grant, the package includes 64.6 million euros debt facility from the European Bank for Reconstruction and Development (EBRD) and an additional 6.7 million euros in technical assistance from donors, including Japan.

The financing will back the construction of a 220-kV transmission line running for 220 km between Choir and Sainshand, as well as substations in the two cities. Building works on the project are scheduled to begin next year with the goal of energising the link in 2027.

The Choir-Sainshand line is expected to enhance the interconnection capacity of Mongolia's power transmission network and reduce transmission losses. Additionally, it will enable the deployment of additional renewable energy capacity.