The projects include a pipeline of solar and battery storage projects in the Commercial and Industrial (C&I) sector. Under the agreement, GridX has identified seven potential projects under development with a combined potential installed PV capacity of 2.8 MWp and 4.5 MWh battery storage.

Capital costs range from USD 2,50,000 to USD 2.1 million. Each project must meet a minimum set of key performance indicators (KPIs) before being presented to Ncondezi for funding.

These minimum KPIs projects must be located in Mozambique, project size should be between USD 1,00,000 and USD 10 million, completion of credit checks on potential clients with additional credit support in place where required, finalised engineering, procurement and construction and operations & maintenance contracts in place are some of them.

Ncondezi will have the right to fund 100 percent of each project’s equity requirement, and projects will be accessed for funding on a project by project basis. Ncondezi will look to identify the optimal financing strategy for each project, particularly with respect to securing funding at the Ncondezi Green Power subsidiary level, and will look at both debt and equity options with gearing of up to 50 percent.

If a project does not achieve KPIs within the proposed timeframe allocated, GridX has the ability to substitute that project for alternative projects. As part of the Relationship Agreement,

GridX has agreed to forego payment of the final amount of the GridX Fee (USD 1,30,000) payable under the previous arrangement, and this is no longer due for payment. Other than the capped development fee and profit-sharing fee which may be due to GridX if Ncondezi elects to fund a project, there are no further cash payments to be made to GridX.