Ncondezi Energy Ltd (LON:NCCL) said its renewable energy subsidiary Ncondezi Green Power and Captive Power Ltd signed an agreement giving Ncondezi first refusal to fund up to US$5.5mln of Commercial and Industrial (C&I) solar and battery storage projects in Mozambique.
Captive Power has identified six initial projects for development with a combined potential installed solar capacity of 2.8 MWp and 6.2 MWh of battery storage. The capital costs range from US$250,000 to US$ 2.1mln.
Investment in these initial projects could potentially provide a revenue stream of over US$750,000 per year.
The initial projects are at an early stage of evaluation with first funding not expected to be required until later in the second half of this year.
"The signing of a new relationship agreement with Captive Power is a no cost solution that ensures that the company retains access to a C&I project pipeline in Mozambique,” said Ncondezi chief executive Hanno Pengilly.
“CPL's management team has a strong track record in the sector operating and building relationships in Mozambique and we look forward to working with them on current and future pipeline projects as we grow our renewable C&I business," he added.
CPL is an energy-as-a-service company and was set up by Justin Pengilly, co-founder of GridX Africa Development and brother of Ncondezi CEO Hanno Pengilly.
The Captive Power agreement supersedes the existing relationship agreement signed with GridX which was announced last May.