Aim-listed Ncondezi Energy is at an advanced stage with the project financing model for its 300 MW coal-to-power project, in Mozambique, and expects sign-off from its partners before the end of the month.
Once the financial model is signed off, the company can start with a formal tariff offer submission to State-owned utility Electricidade de Moçambique.
The company expects the tariff negotiation process to be finalised before June.
The financial model has undergone a number of optimisation iterations, with input from the company’s partners.
The model contains details about the project’s engineering, procurement and construction and operations and maintenance proposals, indicative debt terms from the Industrial and Commercial Bank of China, a letter of interest from the China Export and Credit Insurance Corporation and tax and accounting assumptions from auditors KPMG.
Meanwhile, Ncondezi’s first commercial and industrial solar and battery storage project will be commissioned during the second quarter of this year and start generating revenue from the third quarter.
The company expects that this project will generate revenue of $200 000 a year.
The company announced in October last year that it would build a 400 kW off-grid ground-mounted solar photovoltaic facility, as well as a 928 kWh energy storage facility for a commercial offtaker in Mozambique. The project is valued at $1-million.
The project provides a 100% off-grid energy solution for the offtaker, while providing cost savings of about $70 000 a year.