Nomintav Trade saves energy with solar panels
The EBRD is helping a Mongolian retailer to plan a sustainable expansion.
Nomintav Trade LLC is a subsidiary of Nomin Group and one of Mongolia’s leading retailers for fast-moving consumer goods, apparel and consumer electronics.
The company has a long-term expansion plan, which includes opening six wholesale and retail stores in the capital, Ulaanbaatar, and throughout the region.
Nomin Group plays a significant role in each of Mongolia’s key retail market sectors, including food, clothing, home goods and electronics.
The new stores will not only serve growing demand for these goods outside of the capital but will also create new jobs.
The project will be a significant financial undertaking, so Nomintav Trade have turned to the EBRD for support.
In their first transaction with Nomin Group, the EBRD is providing a USD 12 million senior loan to support the project. Additionally, the Bank is providing grants for technical support, energy audits and project preparation.
Technical support
The EBRD’s FINTECC programme has been established specifically to help companies implement innovative climate technologies. Nomintav Trade’s project includes several energy efficiency initiatives, some of which are eligible for support through the programme.
As part of the project’s wider technical support, EBRD-approved consultants have completed a review of the energy efficiency measures within the project design. The consultants were also able to recommend the best available climate technologies and equipment, for Nomintav Trade.
Based on these discussions, the company has decided to include a solar photovoltaic installation in their investment plan. This will be supported by an SEI investment of USD 650,985.
Following a review of compliance with FINTECC eligibility criteria, an incentive grant has also been proposed, for a select group of climate technologies.
Energy savings
Nomintav Trade’s solar photovoltaic panels will cover 28 per cent of the electricity demand in their Tovchoo centre and 5 per cent of that in Nomin United, leading to a total of 1,909 MWh primary energy savings. There will also be savings of 443 tonnes of CO2 per year.
“The EBRD financing will enable us to expand our retail and wholesale operations. In an effort to contribute to reducing air pollution in and around Ulaanbaatar, we will also install solar panels in our new stores, thus demonstrating the potential of renewable energy.
And of course new jobs and better access to goods that people need we will be contributing to the Mongolian economy as a whole.”
The EBRD in Mongolia
The EBRD began its operations in Mongolia in 2006. Since then, the Bank has invested over EUR 1 billion in over 64 projects in different sectors of the economy. An additional EUR 1.4 billion has also been mobilised from other sources of financing. All of the EBRD investment in Mongolia has been in the private sector.
