Ncondezi Energy Ltd (AIM:NCCL) has produced the final draft of its feasibility study of its 300MW solar photovoltaic and battery energy storage system project in Mozambique.
The study confirms that the project is technically viable, with a preferred site location within Ncondezi Mining’s concession area, the company said in a statement.
The location has a strong solar resource of 1,980kWh per square metre and a high energy yield.
Phased construction of the project can deliver first power up to 60MW within 18 months, with 300MW deliverable over 28 months.
Meanwhile, the company said it needs, and intends to secure, additional funding before the end of November 2022 with various options available and under consideration, including the potential additional tranche of £150k that may be available, at the discretion of the lenders, under the terms of the convertible loan announced on 16 September 2022.
"I am pleased to report that the company's 300MW solar project feasibility study has confirmed a technically viable project with a number of advantages capable of driving a competitive power tariff whilst maintaining a robust investment return,” said Ncondezi chief executive Hanno Pengilly.
“The solar project is expected to benefit from favourable site conditions which will help lower costs and maximise energy yields. Transmission studies confirm multiple feasible connection solutions to strategically connect into the grid with potential to distribute through the Mozambican northern grid as well as the wider Southern African region.”
The study was conducted at various plant sizes including 30MW, 60MW, 100MW, 200MW and 300MW, allowing for optimal plant sizing and phasing analysis, particularly with respect to identifying economies of scale that can generate a lower, more competitive power tariff.
Capex is expected to be between US$800/kWp and US$1,200/kWp.