Ncondezi Energy Ltd on Wednesday said it has signed an agreement to potentially fund a pipeline of solar and battery storage projects in Mozambique.
Ncondezi Energy Ltd is a power development company. The company is engaged in an integrated thermal coal power plant and mine project located on the Ncondezi licences in the Tete Province, Northern Mozambique. Its operating segments include Power Project and Mine Project and Corporate.
The power producer has finalised a binding agreement with GridX Africa Development under which Ncondezi has the right, but not the obligation, to fund a pipeline of solar and battery storage projects in the commercial and industrial sector.
“We are pleased to have finalized the Relationship Agreement with GridX and believe it provides an optimal structure for Ncondezi to build out its C&I solar and battery storage strategy, bringing a focused portfolio of potential projects in Mozambique, which we will have full control over, in a jurisdiction we know well,” said Hanno Pengilly, CEO of Ncondezi. “This structure provides the opportunity for a phased and low risk entry point into the sector, with GridX responsible for the development and delivery of construction ready projects for investment consideration and, over time, a diversified portfolio approach spreading investment risk across multiple projects.”
Ncondezi has a right of first refusal to fund 100% of the projects up to a total of $5.5 million. The projects include a diversified portfolio of seven identified potential projects with a combined potential installed solar capacity of 2.8 megawatt peak and 4.5 megawatt hour of battery storage.
The company said initial projects are at an early stage of development with first funding requirement not expected until the fourth quarter of 2020 or the first quarter of 2021.
