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Hanno Pengilly Chief Executive Officer of Ncondezi Energy provides an update on their solar & battery storage projects and progress with the transition of their coal asset.
Highlights
· Final draft of the Solar Project feasibility study for up to 300MW solar PV power plant plus BESS has been delivered by WSP Group Africa
· FS confirms a technically viable and attractive project, including:
o Preferred site location selected within Ncondezi Mining Concession area with no fatal flaws identified
o Phased expansion potential between 30MW to 300MW
o Strong solar resource of 1,980kWh/m2 (Global Horizontal Irradiation)
o High energy yield of over 2,000kWh/kWp confirms top tier performance potential
o Inclusion of BESS provides grid ancillary support and ability to optimise dispatch profile
o Standardised tier 1 solar PV specifications selected reducing capex and improving performance
o No red flags identified on Environmental and Social Impact Assessment ("ESIA") review
· FS confirms additional specifics that are expected to further drive a competitive tariff offering, including:
o Updated capex projections falling within the low to medium range for solar PV projects globally
o Potential for 20% to 30% capex savings through economies of scale generated by phasing the Solar Project in 100MW phases
o Existing development work enables fast tracking of specific work streams to Financial Close ("FC") saving costs and time
o Inclusion of BESS provides potential for lower cost concessional financing
· FS indicates phased construction of the Solar Project can deliver first power up to 60MW within 18 months of achieving FC with the full 300MW deliverable over 28 months.
· Separate grid connection study completed confirming 2 preferred grid connection options:
o Options are optimized for the phased expansion of the Solar Project spreading capex requirements
o Site is situated in close proximity to the cross border interconnectors making it ideal for regional power trading
o Results to be presented to relevant local authorities for approval
· Updated financial model and tariff proposal targeted during November 2022
· FS results to be shared with potential off takers to confirm indicative power demand over the coming months
To read the full RNS click here