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Ncondezi Energy underscores the potential of Mozambique solar project
3:19 CAT | 22 Nov 2022
FILE - Illustrative photo. [Image: Proactive Investors]
- The plan is to site the operation in Tete Province, the hottest region of the country
Ncondezi Energy Ltd has provided updated guidance on the financial potential of its planned solar and battery energy storage project in the Tete Province of Mozambique.
The operation is expected to scale from an initial 100MW to 300MW, resulting in cash flows over the 25-year life of the assets of US$186mln rising to US$400mln at 200MW and US$584mln at 300MW.
The pre-money net present value of the project at a 10% discount rate is put at US$23mln based on 100MW rising to US$51mln, then US$75mln at 300MW.
READ: Ncondezi Energy shifts away from coal towards solar power in Mozambique – Watch
The capital expenditure required to build the project is put at US$173mln for 100MW, US$347mln for 200MW and US$464mln for 300MW.
“Ncondezi’s updated valuation forecasts further confirm the value potential of our Solar Project to shareholders and new investors,” said Ncondezi chief executive Hanno Pengilly.
“These results are derived from the recently announced positive FS [feasibility study] results which confirm the project’s technical viability and strong solar resources.
“Inputs from the FS have been utilised to update the Solar Project financial model with a greater degree of detail and accuracy, generating what we believe to be a competitive power tariff for potential off-takers.”
In a separate announcement, Ncondezi said it raised £520,000 net of expenses via a share placing.
Source: Proactive Investors
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