Ncondezi makes further progress with Mozambique 300-MW solar project

African power development company Ncondezi Energy Ltd (LON:NCCL) said on Friday it had secured approval for the study into the connection of its proposed 300-MW solar PV project with a battery energy storage system (BESS) in Mozambique.

The Transmission Integration Study (Tx) was approved by state-owned vertically integrated energy group Electricidade de Mocambique (EDM). It showed that there is capacity to upload up to 300 MW into the Mozambican grid and the wider southern African region, and enabled Ncondezi to identify technical solutions to deliver and connect the project in two phases.

The first phase would target a lower cost solution using existing infrastructure to install 100 MW, followed by the second phase to add the remaining 200 MW, the company said in a bourse filing.

EDM’s approval allows Ncondezi to approach transmission infrastructure owners and seek access. Ncondezi’s CEO Hanno Pengilly said that the company expects to have an update on access discussions by the end of the first quarter of 2023.

“Approval of the Solar Project Transmission Integration Study represents a key development milestone in de-risking the project for potential power off takers and investors. We have an approved transmission evacuation technical solution that supports the project at various sizes up to 300MW, optimised in phases to reduce upfront capex, particularly for the first 100MW,” Pengilly said.

The latest milestone comes just days after Ncondezi secured exclusive land rights at the preferred site in Tete province to set the planned power plant.

“The Solar Project remains regionally strategic given its location within the Mozambique northern grid and proximity to critical cross border interconnectors including South Africa, Zimbabwe and, in the coming years, Malawi,” added Pengilly.

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