London Stock Exchange-listed Ncondezi Energy Ltd announced on 23 October that it has signed a subscription agreement and shareholders’ agreement with GridX Africa Development and GridX Africa AssetCo to finance development of a 400kWp off-grid solar plant with a 228kW, 912kWh battery for a hotel in Mozambique. A 165kVA diesel generator will provide backup power. Commissioning is expected within 8 months and the plant will generate around 660MWh/yr.
Ncondezi announced in April that it had signed a binding term sheet with GridX to form a joint venture to develop solar and battery storage projects for commercial and industrial (C&I) customers. The deal saw Ncondezi gain exclusivity and the right of first refusal over at least half of GridX’s project pipeline. Work is ongoing to finalise the joint venture.
Ncondezi is investing $1.1m into the project, which it expects to generate annual revenues of $198,000 through a 15-year fixed price dollar-denominated offtake agreement, which includes a 2% annual escalation. The system will replace existing generators and is expected to result in a 29% cost reduction for the offtaker. GridX will be responsible for operations and maintenance.
Newly appointed Ncondezi chief executive Hanno Pengilly said “today’s announcement marks the company’s strategic entry into the disruptive C&I renewables and battery storage energy sector with an investment in a construction ready project. The project’s technical solution will provide 100% off-grid energy supply and is believed to be one of the first solar PV and battery storage projects of this size in Mozambique.”
Separately, Ncondezi has agreed a $750,000 unsecured working capital facility with Seritza Ltd to continue development of the 300MW Ncondezi coal power project over the next nine months. The facility has a 10% annual interest rate. Ncondezi is looking to extend or restructure a $4.1m loan which mature on 30 November.