viewNcondezi Energy Ltd

Ncondezi Energy aims to fill power gap in Mozambique


  • Developing 300Mw power station in northern Mozambique
  • Advancing towards finalisation of tariff terms
  • Entered commercial and industrial off-grid power sector
  • First solar/battery project due to come online in H1 2020

Quick facts: Ncondezi Energy Ltd

Price: 5 GBX

Market: AIM
Market Cap: £16.25 m

What it owns


“It’s a billion-dollar project,” says chief executive Hanno Pengilly.

The project is in the heart of Tete, Mozambique’s most rapidly industrialising region and a hub for power generation.

In July 2019, a joint development agreement was signed with Chinese firm CMEC and US group General Electric.

Ncondezi Energy (LON:NCCL) will look to retain a 40% equity stake in the project.

Around US$700mln of the construction costs could be funded by debt, leaving the partners with a total of US$300mln to find between them.

On the share register are the African Finance Corporation, a specialist Africa infrastructure fund, and Polenergia that together hold approximately 30% of the company’s issued shares.

Solar Power

Separately, Ncondezi has a joint venture deal with GridX Africa Development with a view to building captive solar and battery storage solutions for commercial and industrial use.

GridX has 15 solar and battery storage projects, of which six are at an advanced stage.

How it's doing

In January, Ncondezi submitted an updated financial model for a 300MW coal-fired power station to its partners for review.

The model will be used for the tariff calculation to be submitted to state power group EDM and includes engineering, procurement and construction (EPC) and operations and maintenance (O&M) proposals, debt terms from the Industrial and Commercial Bank of China and tax assumptions.

Ncondezi added that tariff submission remains on track for this quarter, with final price negotiations pencilled in by the half-year

A Letter of Interest has also been received from China Export & Credit Insurance Corporation (Sinosure) to cover political and commercial risk insurance for the project

What the CEO says: Hanno Pengilly

“Ncondezi is uniquely positioned to take advantage of baseload power generation development in Mozambique at an important time for the country.

“The company's 300MW Ncondezi project is one of the most advanced baseload power plant projects in Southern Africa with market-leading co-development partners.”


Inflexion points

  • Interim COO appointed to lead technical processes at Tete
  • Finances for Ncondezi agreed and put in place
  • Permits agreed and construction gets underway in Mozambique
  • Expansion of GridX solar project
  • JDA timetable for Ncondezi


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Ncondezi Energy submits updated financial model for Mozambique project to...

Ncondezi Energy Limited's (LON:NCCL) Hanno Pengilly speaks to Proactive London's Andrew Scott after announcing they've submitted an updated financial model for a 300MW power station at Tete in Mozambique to its partners for review. He adds that tariff submission remains on track for this...

3 weeks, 2 days ago

2 min read