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Ncondezi Green Power Holding (NGP), a wholly-owned subsidiary of Mozambican power developer Ncondezi Energy Limited, has launched a feasibility study for a solar photovoltaic project with a battery storage system in Tete province. WSP Group Africa is selected to conduct the feasibility study which is expected to complete in four months.
The solar project with a maximum generation capacity of 300 MW will be located within the Ncondezi mining concession 5967C where it is already developing an integrated coal mine project. The research study will examine the viability of developing the hybrid solar-storage project at one of the three suitable sites in the mining area.
The mining concession spans over 25,000 hectares area in the districts of Moatize and Chiuta, which has the potential of supporting nearly 5 GW of solar PV capacity. Ncondezi has signed an agreement with the Chinese engineering firm China Machinery Engineering Corporation (CMEC) in 2019 to work on the coal-fired power station.
Ncondezi is now exploring clean and coal-free power sources along with working on the said project. The feasibility study will employ a modular design approach to the future solar project allowing for greater flexibility along with planning the scaled development program of 30 MW, 60 MW, 100 MW, 200 MW, and 300 MW.
Hanno Pengilly, Ncondezi’s CEO, commented, “The solar project represents a significant opportunity to further define the project and crystalize 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 PV plant will be connected to the Mozambican grid with target power off-takers in the country and the Southern African Power Pool (SAPP). The pre-money net present value of the hybrid solar-storage project is estimated is at $60-65 million with fully diluted cash flows of $130-180 million over a period of 25 years.
Ncondezi will leverage the existing advanced stage development work from the coal power station to significantly cut development costs for the solar project. This will also help the company to reduce the development timetable by 6 to 12 months, with the first power potentially on the grid by 2024.