There have been a lot of articles about how many Asian countries, namely China, are starting to dominate the solar energy sector. However, General Electric Co. has decided to enter the Asian alternative energy sector by announcing they will be providing 31 turbines for a $100 million wind farm in Mongolia. The farm will be built by Newcom LLC, a Mongolian investment company.
Financed by the Fairfield conglomerate, the Salkhit Wind Farm has been described by the company as its “entry to Mongolia” and “a strategic move.” It is easy to see why GE would want to get involved. Mongolia is currently a coal-hungry nation, but has said numerous times that it is committed to boosting its use of clean-energy generation.
The wind farm will be located about 40 miles southeast of the capital, and when it opens next year it will supply electricity equal to about 5% of Mongolia’s current installed electric-power generating capacity. Whether this will be enough to meet Mongolia’s ever-growing energy demand remains to be seen, however the wind farm reflects a government strategy to boost the portion of renewable-power sources to 20%.
Each of GE’s turbines will carry 1.6 megawatts of generating capacity, 82.5 meter rotors and 80 meter hubs. It is estimated that each turbine costs at roughly $1.4 million per installed megawatt.
“This is a milestone in the development of GE’s relationship with Mongolia and our teaming with Newcom,” GE Vice Chairman John Rice was quoted as saying in the statement.
This deal is the first tangible outcome of a September 2010 memorandum of understanding between GE and Newcom to explore alliances in energy, water, mining, aviation, railway, lighting and health care.