- MPower has acquired all the development rights, including Connection Agreement and key planning approvals for the Narromine solar asset
- Construction phase to commence immediately, with completion expected within 12 months
- Total consideration for full project rights of $1.4m, fully-funded from MPower’s existing $10m financing facility
- MPower remains fully-funded to advance development and add Narromine to its existing suite of revenue-generating clean energy assets
- MPower continues to accelerate the construction of a pipeline of clean energy assets across the energy grid
- Narromine project is strategically located in regional NSW with the capacity to generate 14,000MWh in its first year and earn revenue from the sale of renewable energy and certificates
Sydney – 1 September 2023 – MPower Group Limited (ASX: MPR)
Leading specialist renewable energy and battery storage development company MPower Group Limited (ASX: MPR) is pleased to announce that it has successfully completed the purchase of all project rights for the development of its next renewable energy project in Narromine, NSW which now commences the construction phase.
The project rights include the Connection Agreement for connection to the grid, land rights and key planning approvals – all of which provide MPower with a clear pathway to accelerate construction following the original purchase agreement to acquire the designated site in August 2021 (refer ASX Announcement 31 August 2021).
MPower has paid a total consideration of approximately $1.4m for the project rights and the acquisition of inverter equipment which has been pre-ordered as part of the Company’s project development plans.
The purchase price has been funded in its entirety from MPower’s $10 million clean energy project funding facility (refer ASX Announcement 4 August 2023).
The Narromine development marks the next step in MPower’s stated strategy to establish a Build Own Operate portfolio of up to twenty 5MW renewable energy projects across Australia.
It follows the successful acquisitions of the Lakeland Solar & Storage Project in Cooktown Shire, North Queensland and the Faraday Renewable Energy Project in Faraday, Victoria, and builds on the Company’s existing shovel-ready assets in South Australia.
After successfully implementing a targeted series of operational and financial improvements at Lakeland, MPower commissioned an external valuation to support a valuation of the asset at $12.7m (refer ASX Announcement 10 August 2023) – a gain of $6.1m which has been recognised as profit in the Company’s recent full year accounts.
MPower is now proceeding immediately to the commencement of construction at Narromine, with all project rights secured and funding in place.
The project includes over 12,000 Bifacial PV Modules with the capacity to produce more than 14,000MWh of energy in its first year of operations. The project is due to be completed within 12 months and will earn revenue from the sale of renewable energy and certificates.
Additional project information can be found at this link: https://www.mpower.com.au/narromine.
MPower Chief Executive Officer, Nathan Wise, commented: “The successful acquisition of full project rights at Narromine follows an extensive period of planning, and we are pleased to confirm completion of the purchase agreement and get started on the next phase of development. Our Narromine asset is strategically located with the capacity to power more than 1,500 homes via a sophisticated network of more than 12,000 bi-facial solar panels, and an estimated equivalent carbon offset of more than 9 million tonnes of CO2.This acquisition builds of the key operational milestones that MPower has already achieved in the year to-date, including the procurement of an unconditional $10m funding facility and the material value accretive measures carried out across its existing asset portfolio. We look forward to bringing our latest clean energy project to the domestic power grid and further expanding our project development suite in the months and years ahead.”
For further information, please contact:
Chief Executive Officer
(02) 8788 4600
Six Degrees Investor Relations
0413 150 448
This announcement has been authorised by Nathan Wise, Chief Executive Officer.
MPower Group Limited (ASX: MPR) is a technology-led company with a long history specialising in the delivery of reliable on-grid and off-grid power solutions for blue chip corporate and government customers. Headquartered in Sydney, MPower's team of professionals has successfully delivered turn-key solar, battery storage and micro grid projects across the region.