Mozambiques 300MW Coal Power Project Stalls Over Outdated Tariff

  • Progress on the development of Ncondezi Energy’s flagship 300 MW coal-fired power project and coal mine in Tete, Mozambique, has been delayed, the African power developer said.
  • The delay came after discussions with state power company Electricidade de Mocambique (EDM) indicated that available technical and market assumptions for a tariff agreement, which were initially submitted March 31, were out of date.

The company said an updated transmission integration study and Mozambican power market outlook study had been commissioned, and were targeted for completion in the third quarter of 2020.

Allowing for the completion of those independent studies, Ncondezi said the tariff agreement was now expected to be finalised in the second half of the year.

“Based on this, the company has submitted an updated work program to EDM for review and will provide a more detailed timetable update to investors at the appropriate time,” Ncondezi Energy said.

“Since the submission of a formal tariff offer earlier this year, the company has worked closely with EDM to discuss and agree the pathway to progress the project,” said CEO Hanno Pengilly.

“With EDM’s guidance, the company has agreed to update its transmission integration study as well as conduct an independent market study for energy supply and demand forecasts in Mozambique and potential export markets.”

Pengilly said the results of those studies should verify certain technical assumptions, and provide greater certainty around the business case for the project alongside the tariff proposal, facilitating negotiations on the project tariff.

The results are also expected to be a key requirement from potential project lenders and investors.

Author: Bryan Groenendaal

Source:  Proactive Investors

Leave A Reply

About Author

Green Building Africa promotes the need for net carbon zero buildings and cities in Africa. We are fiercely independent and encourage outlying thinkers to contribute to the #netcarbonzero movement. Climate change is upon us and now is the time to react in a more diverse and broader approach to sustainability in the built environment. We challenge architects, property developers, urban planners, renewable energy professionals and green building specialists. We also challenge the funding houses and regulators and the role they play in facilitating investment into green projects. Lastly, we explore and investigate new technology and real-time data to speed up the journey in realising a net carbon zero environment for our children.

Receive the week’s most popular stories in your inbox every Saturday morning