Mozambique: Ncondezi Energy’s power development project gaining traction

Image: Marcelo Coelho/The Mozambique Resources Post

Power development company Ncondezi Energy (Ncondezi) on Monday announced that it had received a Letter of Support (LoS) from the Ministry of Mineral Resources and Energy regarding its integrated 300MW power and coal development projects in the East African country.

Further, Ncondezi signed a Memorandum of Understanding (MoU) with Mozambican state power utility company, Electricity de Mozambique (EDM).

Both the LoS and the MoU come with a way forward for the development of the project and includes a project timetable that needs to be finalized. Ncondezi also stipulated that the project will be managed through a liaison committee, chaired by MIREME.

Ncondezi’s non-executive Chairman, Michael Haworth said: “Receipt of the support documents from the Ministry of Mineral Resources and Energy and EDM are welcomed by the company, as they provide formal support for the continued development of the project, as well as confirmation of the process and key development milestones required to enter into formal tariff negotiations and finalize the project development timetable.”

Both the Ministry of Mineral Resources and Energy and EDM have outlined strict prerequisites for the project, highlighting formal tariff negotiations and the continuation or improvement in energy demand outlook and regional tariff pricing outlook.

The support documents also highlight that coal development is part of Mozambique’s energy development mix, as well as the project being an advance stage project as part of Mozambique’s energy plan.

“The Mozambican government recently approved the Integrated Master Plan for Electricity Infrastructure, which includes the sourcing of 1,350MW of coal fired energy between 2018-2043. As one of the most advanced power development projects in Mozambique, the company is well positioned to supply this power,” he noted.