Mozambique: Ncondezi Energy Restarts Construction of Solar Power Project
The African power development company announced the continuation of construction works for the project, which is planned to be commissioned in June 2021.
The solar power project is the initial commercial and industrial project for Ncondezi Green Power (NGP), a subsidiary of Ncondezi Energy Ltd, and the first of its kind in Mozambique. Work on the project was stopped at the height of the COVID-19 pandemic crisis.
A statement released by the company in March announced the re-mobilisation of construction works at the solar power project. Speaking about the announcement, Hanno Pengilly, Chief Executive Officer at Ncondezi Energy Ltd, stated, “Project construction is set to resume this month with commissioning targeted for June 2021 following the lifting of COVID-19 related force majeure.”
The suspension of works led to additional costs of approximately US$500,000. The NGP reported the signing of a six-month bridge loan term sheet to provide this balance to complete the project. President Michael Haworth will cover US$50,000, and Hanno Pengilly will cover US$100,000. The remaining US$350,000 will be covered by Scott Fletcher, who is representing the investors of Ncondezi Energy.
“The bridge loan will be provided directly to the company's wholly-owned subsidiary, Ncondezi Green Power, and honors the prior commitments not to dilute shareholders to progress the Company's C&I strategy," Hanno said.
The solar power project will be wholly off-the-grid and will have a capacity of 400,000-kilowatts, with about 912-kilowatt hours of battery storage. The solar plant is targeting the delivery of 600-megawatt hours (MWh) per year, and a savings of 517 tonnes of carbon dioxide annually.
The project’s 15-year fixed-price offtake agreement set with the contracted revenue of US$3.1 million is in place with annual price escalations. Hanno Pengilly, the CEO, said, "Today's announcement reinforces the company's commitment to the C&I renewable energy sector in Africa."
“The project is using leading technology from Tesla, JA Solar, and ABB for the battery pack, solar panels, and inverters, respectively. This is the first of our pipeline of green energy C&I (commercial & industrial) assets to near completion and is expected to provide near-term revenue for the company.
“Although the impact of COVID-19 delayed the Project delivery timetable, the demand for sustainable energy solutions that provide increased energy security whilst also reducing costs has become more robust.”
Photo: Construction of a Solar Power Plant and a High-Voltage Sub-Station (Gorvik | Dreamstime)
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