Ncondezi making progress on Mozambique power deal
London-listed Ncondezi Energy was one step closer to securing a binding power purchase agreement (PPA) with Mozambique State-owned power utility Electricidade de Mozambique (EDM) after signing nonbinding heads of terms earlier this month.
The nonbinding power purchase and transmission agreement heads of terms was a precursor to negotiating a full and binding PPA.
Ncondezi said negotiations were expected to start “imminently” and conclude with a final agreement in the first quarter of 2014.
“The signing of the PPA heads of terms signi- ficantly accelerates the project momentum built over the past five months, as it confirms EDM as the main offtaker for the first 300 MW gene- rated [from the Ncondezi project],” CEO Paul Venter said.
Ncondezi Energy expected to commission the first 300 MW, of the planned 1 800 MW, of its 100%-owned Ncondezi project, in Tete province, in northern Mozambique, in 2017, followed by commercial operations during the first half of 2018.
The first 300 MW phase would supply domestic consumers in Mozam- bique using reinforced existing transmission capacity to meet current demand.
EDM would be the exclusive buyer of the electricity generated by the first phase of the integrated thermal coal mine and power plant project for a 25-year period.
The PPA’s heads of terms stipulated that Ncondezi would be responsible for the design, construction, commissioning, ownership, operation and maintenance of the power plant, as well as make available the entire capacity of the power plant and net electrical output to EDM on an exclusive basis, besides others.
The design, construction and commissioning of a transmission line would be transferred to EDM for operation and maintenance once commissioned.
Ncondezi also concluded the heads of terms for a coal supply agreement with the Ncondezi coal mine, with a final agreement expected in the first half of 2014.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation















