May 6 (Renewables Now) - Ncondezi Energy Ltd (LON:NCCL) has signed a binding relationship agreement with renewables firm GridX Africa Development to fund a pipeline of solar and battery storage projects for the commercial and industrial (C&I) sector in Mozambique.
The portfolio includes seven identified potential projects totalling 2.8 MWp of solar photovoltaic (PV) and 4.5 MWh of battery storage capacity to be developed by GridX.
Under the terms of the agreement, Ncondezi has the right of first refusal to fund 100% of the projects up to a total of USD 5.5 million (EUR 5.1m). The African power development company has said it will make investment decisions on project by project basis.
To be considered for funding, all projects have to meet minimum key performance indicators (KPIs), among them signed off-take agreements, use of proven technology, secured consents and permits to start construction. Until the KPIs are met, GridX bears the costs of the project development.
The initial set of seven projects are at an early stage of development. The first funding requirement is not expected until late 2020 and early 2021, Ncondezi said.
The projects have a potential to bring over USD 750,000 in revenues per year. They will be tucked under the company’s newly-founded renewables unit Ncondezi Green Power.
(USD 1.0 = EUR 0.925)