Ncondezi Energy has announced a feasibility study (FS Study) for its up to 300MW solar photovoltaic (PV) and Battery Energy Storage System (BESS) project in Tete, Mozambique.
The African power development company is building the project through its wholly-owned green energy subsidiary, Ncondezi Green Power Holding (NGP).
NGP has selected engineering services and technical consultancy firm WSP Group Africa (WSP) to conduct the FS Study, which WSP is expected to be completed in four months.
The company intends to build the solar plant within the Ncondezi concession area, where three preferred sites with the potential to generate 500MW each have already been identified.
The three sites cover more than 25,000ha of area in the districts of Moatize and Chiuta in the Tete Province, Mozambique.
In addition, the concession area has high Global Horizontal Irradiance (GHI) and is located close to the existing energy load centres in the Tete province.
Ncondezi said that the project will benefit from the development work it has previously completed for its 300MW thermal power plant and first power to the grid by 2024.
Ncondezi chief executive officer Hanno Pengilly said: “The solar project represents a significant opportunity to further define the project and crystalise additional value for shareholders.
“The company has taken measured steps to get to this point including the completion of a pre-feasibility study and positive engagement with Mozambique authorities.
“The solar project is uniquely positioned to leverage existing advanced stage development work from the company’s 300MW thermal power project, which is expected to significantly cut development costs and accelerate project delivery with first power potentially on the grid by 2024.”
Ncondezi is planning to connect its new solar plus BESS project with the Mozambique grid to serve power off-takers in Mozambique and the Southern African Power Pool (SAPP).
The FS Study is planned to be conducted in a modular design approach, allowing for a scaled development programme of 30MW, 60MW, 100MW, 200MW and 300MW.
According to pre-feasibility studies by NGP, the project will provide significant value to shareholders with an estimated pre-money NPV of between $60m and $65m, over 25 years.
NGP has secured the required approvals and permissions from relevant Mozambique government authorities to commence the FS Study.
Upon completion of the FS Study, the company intends to work with the government to secure relevant permissions to build and operate the solar plus storage project.
