Ncondezi Energy Ltd (AIM:NCCL, OTC:NCDZF) told investors it has progressed a number of milestones for its solar power and energy storage project in Mozambique.
The company, in a statement, said its transmission integration (Tx) study has been approved by state regulator Electricidade de Moçambique (EDM).
It highlighted that the Tx study has confirmed the technical viability of a project to evacuate up to 300MW into the Mozambican grid and the wider southern African region – confirming a phased technical solution comprising an initial, lower cost 100 megawatt phase followed by a second which will comprise a further 200MW.
With the approval of the Tx study the company can now engage with transmission infrastructure owners to agree access, which the company describes as a material de-risking step.
In the statement, Ncondezi chief executive officer, Hanno Pengilly said: "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.
“Following the approval, the company is initiating discussions with transmission infrastructure owners to seek to agree access. We are confident access will be supported as we believe the Solar project will provide significant transmission benefits including greater energy security, voltage control and stability. We are targeting an update on this by the end of Q1 2023."
Pengilly added: “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.”