(Alliance News) - Ncondezi Energy Ltd on Friday said it continues to work with regulators in Mozambique to discuss and agree the pathway to progress its local project.
At the end of March, Ncondezi submitted a firm tariff proposal to the Mozambican government and Electricidade de Mocambique, the sole utility in the country.
Following submission, Ncondezi said it has held a number of virtual meetings with key representatives of Electricidade de Mocambique to discuss and agree the pathway to progress the 300 megawatts coal-fired power project and coal mine in Tete, Mozambique.
As part of this process, it has been agreed that independent studies be carried out to update the transmission integration plan and electricity market outlook. The independent studies will assess the current project planning, identify potential optimisations and evaluate the value proposition of adding the project to the Mozambique energy supply mix.
The power producer said the transmission integration study has already commenced with completion targeted in July. The market study scope is in the process of being finalised and work is expected to start in July and be completed before the end of the third quarter of 2020.
"The results of these 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," said Chief Executive Hanno Pengilly.
AIM-listed Ncondezi shares were trading 15% lower in London on Friday at 3.58 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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