MAST Energy Developments (MED), Kibo Energy’s 60%-owned subsidiary, has signed a binding conditional agreement for the exclusive right to undertake due diligence and negotiate the potential acquisition of five peaking power sites totalling 25.85 MW.
Under the terms of the agreement, MED has secured, at no cost, the exclusive right to acquire the peaking power sites from a prospective developer, subject to the completion of due diligence to MED/Kibo's satisfaction and subsequent agreement of detailed commercial terms and conditions, including the acquisition price and transaction structure.
The sites range in scale from about 2.5 MW to about 7.5 MW and are all 11 kVA.
MED has until April 8 to complete its due diligence, with a long stop date for the conclusion of a share sale agreement of May 31.
Additionally, as announced in January, MED has now entered the final stages of the negotiation of a joint development agreement (JDA) on its first shovel-ready site – a 5 MW, 11 kVA site.
Once negotiations have been completed, MED will look to complete negotiations and sign the JDA for a second site.
Kibo CEO Louis Coetzee says MED is “making excellent progress towards [starting] operations later in the year and realising [its] first revenues”.
He explained on Wednesday that the agreement to potentially acquire a further five sites demonstrated MED's commitment to becoming a fully operational and competitive power supplier in the UK Reserve Power generation market.
“It is still in the early stages of achieving this, but we could not have hoped for a more successful start than what we have seen over the past three months.”