An interview with Hanno Pengilly, CEO OF Ncondezi Energy Ltd. Ncondezi Energy is listed on London’s Stock Exchange with the ticker LON: NCCL.
Ncondezi Energy is an African Power Development Company with an advanced staged 300 MW coal power plant and mine in Northern Mozambique. The company is also developing solar projects, specifically delivering solar combined with battery storage.
The coal project supports Mozambique’s energy strategy of universal energy access by 2030. The company is looking to provide reliable and affordable baseload power to the Mozambican grid.
The project is advanced and has notable partners: China Machinery Engineering Corporation has onboarded as a development partner, and General Electric have joined as a technology partner for the power generation technology, as well as the emission reduction technology.
Ncondezi enjoys strong support from both the Mozambican and Chinese governments: the 2nd Mozambican International Corporation Summit (2019) selected Ncondezi’s power plant as a critical infrastructure project.
Ncondezi will be providing an updated power tariff to the Mozambican government later this year. After this, the company will finalise commercial agreements and begin construction on the power plant. The plants’ design will enable state of the art emission control technologies that will reduce local air pollutants and ensure compliance with the most stringent of emission standards.
Ncondezi has also entered the off-grid solar combined with battery storage sector, with an investment in its first project to take a hotel group off-grid. Ncondezi expects this project to be commissioned in Quarter 2 of this year.
Solar combined with battery storage is a significant growth opportunity for Ncondezi as a large part of the African Continent is not connected to the grid. In recent times, both solar and battery storage costs have decreased dramatically, to the point where they are becoming cost-competitive with diesel power generation. This means that any company running a diesel generator is a potential client for Ncondezi’s offering, which is clean, reliable and affordable.
Mozambique is a leading energy generator for Southern Africa and exports power to South Africa. On domestic usage alone, forecasters expect energy in Mozambique to grow by ten times over the next 25 years.
Mozambique has a history of delivering power projects, having seen five completed in the last six years. Ncondezi’s projects focus on Mozambique’s northern grid which the government sees as a crucial development area, for several reasons. Firstly, the northern grid is reliant on hydro-electric power and exposed to the effects of drought. Secondly, the territory has witnessed a growing demand from significant mining operations and agriculture. Finally, the northern grid is where Mozambique connects into South Africa and Zimbabwe.
Ncondezi’s coal power project will assist the grid in the north by balancing out the intermittent power supply of new renewables and drought.