For the period ending on 31 March 2023
- Strategic project funding agreement secured with global renewables investment firm AMPYR Energy, with agreement executed for first $10m in funding for clean energy project in Narromine, NSW
- Flagship solar PV and battery storage development in Kadina, South Australia reached ready-to-build stage, with multi-year planning and development permits now obtained
- Strategic acquisition of renewable energy project in Faraday, Victoria – a shovel-ready project comprising over 11,000 Bifacial PV Modules with the capacity to produce more than 11,000MWh of energy and power >1,500 homes in the local region
- March quarter activities saw the Company advance its growing project pipeline and secure long-term funding for the execution of its Build Own Operate strategy
Sydney – 28 April 2023 – MPower Group Limited (ASX: MPR)
Leading specialist renewable energy, battery storage and microgrid business MPower Group Limited (ASX: MPR) is pleased to provide the following report on its activities for the quarter ending 31 March 2023 (Quarter).
Operations in the March Quarter were highlighted by ongoing project development initiatives and the procurement of a strategic financing arrangement that positions the Company to capitalise on its first-mover advantage in Australia’s clean energy transition.
Operational highlights included the acquisition of the Faraday renewable energy project in January – a shovel-ready project 116km north-east of Melbourne that will supply clean energy to the local region via a network of 11,000 Bifacial Photovoltaic (PV) solar panel modules.
The acquisition followed an extensive co-working period with the project developers and local authorities to obtain all necessary development permits in accordance with the terms of the initial purchase agreement.
Selected by MPower because of the outlook for strong local energy demand in the Faraday area, the on-site PV modules will have the capacity to produce more than 11,000MWh of energy in the project’s first year of operation.
Also during the Quarter, MPower confirmed that its flagship project in Kadina, South Australia – a clean energy development comprising a 5MW solar farm with a DC-coupled 5MW/10MWh battery storage capability – has formally reached shovel-ready status following an extensive permit approval process.
The approvals include a grid connection offer and all relevant permits and planning approvals required to bring the project to shovel-ready status.
The Kadina development follows the successful rollout of the group’s hybrid (solar/battery) model in Queensland, where its Lakeland Solar & Storage Project continues to deliver consistent revenues and generate material contributions to group EBITDA.
With its grid connection and battery storage capacity, the Kadina project has been designed with import functionality to enable charging in periods of low or negative pricing. The project’s hybrid design will also benefit from recent rule changes by the Australian Energy Market Commission which designate the Kadina project as an Integrated Resource Provider.
The rule change is designed to support the integration of battery storage into the National Electricity Market, particularly where storage and hybrid systems utilise a single connection point, which is the case with the Kadina project. Considering these developments, MPower is well-placed to monetise prevailing market conditions over the 30+ year life of the asset.
During the Quarter, MPower’s operational highlights were complemented by the execution of a major strategic funding agreement with Singapore-based renewables investment specialist AMPYR Energy.
The innovative structure of the agreement will provide 100% of the funding for the Company’s clean energy project in Narromine, NSW (expected to be fully operational during summer 2023/2024) with the flexible financing arrangement facilitating the long-term growth of MPower’s Build Own Operate (BOO) strategy on a project-by-project basis.
Following the signing of funding documentation for the first project, the facility is expected to be drawn in the coming weeks once conditions precedent are satisfied, including finalisation of security arrangements, project authorisations being in place and final due diligence and lender approvals being obtained.
The funding model has been designed to provide the Company with funding flexibility in the design and construction phase, while allowing both parties to participate in the upside from the long-term supply of renewable energy to major power grids across Australia. The parties are targeting a phased expansion of the funding program with a focus on MPower’s pipeline of clean energy developments.
Chief Executive Officer Nathan Wise commented: “We are pleased with the Company’s efforts in the March quarter, which saw strong execution on the ongoing development of our project portfolio and a major strategic financing agreement which sets the business up for long-term growth. The flexible financing arrangements with AMPYR reflect both their confidence in MPower’s BOO strategy, and the ability of both sides to structure an innovative funding solution that will allow the Company to grow and execute on its long-term growth strategy. Operationally, the group continued to build off its previous quarter’s momentum, with the achievement of project-critical benchmarks for its portfolio assets in NSW, VIC and SA. Heading into the June quarter, MPower looks forward to providing more updates on construction and approvals across its portfolio, as the group continues to build out its unique asset development strategy within Australia’s broader clean energy transition.”
Payments to related parties
Payments of $19K to related parties and their associates relate to remuneration payments were made to the directors of the company.
For further information, please contact:
Chief Executive Officer
(02) 8788 4600
Six Degrees Investor Relations
0413 150 448
This announcement has been authorised by the board of MPower Group Limited.
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.