African coal plant operator turns to solar for new power JV

By Sean Rai-Roche
An off-grid solar installation in Africa supported by USAID. Image: USAID.

Mozambique-based coal operator Ncondezi Energy has announced a joint venture (JV) with South African-based NESA to target South Africa’s C&I solar and storage markets.

The term sheet agreement signed by the two parties will create a regional company that will acquire assets from both Ncondezi Energy subsidiary Ncondezi Green Power (NGP) and NESA.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

NESA comprises Nesa Capital and Nesa Engineering, an EPC firm. The company manages a 15.5MWp solar plus 0.2MWh storage C&I portfolio (the NIH portfolio) across 66 sites in South Africa.

If successfully implemented, the current combined project pipeline of the JV would lead to 94.5MWp solar PV and 13.5MWp battery storage, as well as 47 possible further projects being developed.

The JV is being lined up to take a controlling stake in the NIH portfolio and will also include NGP assets including a 400kWp solar PV and 0.9MWh battery storage project under construction, and NGP’s project pipeline in Mozambique.

Aiming to create a “Southern African champion”, Ncondezi CEO Hanno Pengilly said the agreement will set the company on a clear pathway towards 100MWp solar PV and 13.5MWp battery storage over the next three years.

NGP will acquire a minimum 40% equity stake in the JV pre new equity capital. The companies have entered into a binding agreement to negotiate on terms which they would acquire, through the JV, a controlling stake in the NIH portfolio by 30 November, with the possibility to acquire 100% within five years.

For NESA, the relationship will mean access to institutional capital to meet funding requirements to scale fast, said Nesa Engineering executive director, Peter Frolich.

Read Next

May 7, 2024
Zambian developer GEI Power and Turkish energy technology firm YEO are planning a 60MWp/20MWh solar-plus-storage project in Zambia, expected online by September 2025.
May 6, 2024
JP Casey explores some of the latest trends shaping Africa's solar sector, where the C&I segment in particular is surging ahead.
April 15, 2024
Pure New Energy (PNE) has sold the 240MW Khauta solar project in South Africa to the NOA Group, an energy company based in the country.
April 8, 2024
Japanese conglomerate Toyota Tsusho Corporation has established a new joint venture (JV) seeking to develop renewable energy projects across Africa.
February 8, 2024
CrossBoundary Energy will develop a hybrid solar PV, BESS and thermal energy project at the Baomahun gold mine in Sierra Leone.
January 10, 2024
Infrastructure investment manager I Squared Capital has agreed to invest up to US$400 million in Brazilian distributed generation company Órigo Energia.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
May 29, 2024
11am (EDT) / 5pm (CEST)
Solar Media Events
June 4, 2024
London, UK
Upcoming Webinars
June 11, 2024
3:00 PM (BST) / 4:00 PM (CEST)
Solar Media Events
July 2, 2024
Athens, Greece