India and Mongolia have signed a memorandum of understanding (MoU) aimed at facilitating cooperation between the two countries in developing renewable energy capacity.
It was one of the fourteen agreements signed between the two countries on Sunday as part of Indian prime minister Narendra Modi’s visit to the central Asian country.
Both countries have signed similar agreements in the past, too, and the latest measure is apparently a continuation of the process.
Mongolia, under its ‘National Renewable Energy Program’ had set the target of infusing 20–25 percent of clean energy into the mix by 2020.
Owing to its geography, the country has good to excellent wind resources with the potential to support 1,113,300 MW capacity.
If this potential is fully harnessed, the country can produce power adequate to meet not only the local requirement but also to supply neighboring countries such as Russia and China.
ALSO READ: India and Mongolia to cooperate on renewable energy
However, according to a report published by the National Renewable Energy Center, Mongolia will “require the active participation and support from international banks, financial institutions, foreign and domestic investors, and business entrepreneurs of the energy sector” to develop its clean energy sector.
The $1 billion credit line that the Indian prime minister has announced during his visit to “support the expansion of Mongolia’s economic capacity and infrastructure” could also be utilized for the development of renewable energy in that country.
India has of late been taking proactive measures aimed at developing renewable energy capacity both domestically and through international cooperation.
The country, along with China, is under international pressure to reduce its carbon emissions. India is the third largest carbon emitter globally whereas China tops the list.
Recently, the Union Cabinet approved an MoU between India and Seychelles on cooperation between the countries to mutually strengthen, promote and develop renewable energy projects. Modi had signed the MoU in Seychelles during his visit to the country in March.
India will need more intensive measures to achieve the target of 175 gigawatts of renewable energy by 2022 that it has set for itself.
Ajith Kumar S