Energy developer Ncondezi Energy announced that it has submitted a power transmission integration study to Electricidad de Moçambique (EDM) for its integrated 300MW coal-fired power project and coal mine in Tete Province.
According to a company statement, the study evaluated a number of transmission connection options for the project taking into account current and planned changes to the network since the last study was completed with EDM.
The study will be used by EDM to provide approval on the project transmission option to connect into the Mozambique grid.
The company has assured that the power plant will be designed to be equipped with state-of-the-art emissions controls technologies that will reduce local air pollutants, minimising the plant’s impact on the environment and ensuring its compliance with the most stringent emission standards.
Ncondezi Energy’s CEO, Hanno Pengilly, said: “It’s a fantastic step forward that we have submitted the final draft of the transmission integration study to EDM for review.”
Following the updated tariff proposal in March 2020, this report was required and has been updated with proprietary information from EDM, explained Pengilly.
“The results look encouraging and have identified a number of optimisations, which have the potential to improve transmission line cost, strengthen the grid and facilitate future transmission expansion plans,” said Pengilly.
He added: “Tariff negotiations are continuing in parallel and are progressing positively. The team continues to work tirelessly to reach our goals and we look forward to providing further updates in due course.”
Transmission integration to close infrastructure gap
According to the World Bank, only 30% of the Mozambican population had access to energy in 2017.
In efforts to improves energy access and close the infrastructure gap, in October 2019 the company announced its first investment in an off-grid solar battery project.
Ncondezi Energy has since then secured the right to fund a $5.5 million commercial and industrial (C&I) project development pipeline in Mozambique through a relationship agreement with a C&I developer.
The move into the C&I solar and battery storage sector offers a significant opportunity for the company to complement the existing large-scale baseload power project and access near-term low-risk annuity income streams which have significant growth potential.