For the period ending on 30 June 2023
- Strategic partnership formed with Evergen, facilitating the integration of Evergen’s distributed energy optimisation technology into MPower’s clean energy portfolio
- Technology to optimise arbitrage opportunities, loads and new market opportunities into the future
- $10M project funding agreement with global renewables investment firm AMPYR Energy substantially progressed
- MPower responsible for project design and construction across its asset portfolio, as well as earn ongoing revenue from operations in accordance with its stated BOO strategy
- June quarter activities saw the Company advance its growing project pipeline and progress long-term funding for the execution of its Build Own Operate strategy
Sydney – 31 July 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 30 June 2023 (Quarter).
Activities in the March Quarter were highlighted by advancing the company’s funding arrangements and the formation of a strategic partnership with Evergen.
Strategic partnership with Evergen
During the Quarter, MPower formed a joint strategic development partnership with Evergen, a global clean energy infrastructure provider. The agreement facilitates the deployment of Evergen’s optimisation technology in parallel with the phased rollout of MPower’s clean energy asset portfolio. The application of Evergen’s technology is expected to provide MPower with a unique competitive advantage and drive returns on a project-by-project basis.
Under the terms of the platform agreement between the parties, Evergen’s technology will be deployed initially at MPower’s Lakeland Solar & Storage Project – a 10.8MWac solar farm with an associated 1.4MWac/5.3MWh lithium-ion battery storage facility. The Evergen platform will then be rolled out across MPower’s portfolio projects as they are constructed.
Evergen’s renewable generation optimisation and portfolio management technology will be configured for MPower’s requirements and is designed to integrate directly with MyPower®, MPower’s proprietary remote monitoring and control platform.
MPower’s portfolio is ideally suited to Evergen’s platform, with its optimisation technology being developed specifically to enhance the performance of decentralised clean energy assets, which aligns directly with the network of decentralised power assets that MPower is building across Australia.
$10M project funding facility
MPower made substantial progress during the Quarter in advancing the $10 million project funding facility announced at the end of the March quarter.
The Company established a project funding relationship with AMPYR Energy, a global renewable energy investment firm, to fund the growth of its national Build Own Operate portfolio of solar power and battery storage projects being rolled out across Australia.
During the Quarter, the parties worked to close out the conditions precedent under the facility, including finalisation of security arrangements, project authorisations being in place and final due diligence and lender approvals being obtained. The conditions precedent are expected to be satisfied in the coming weeks.
The innovative funding arrangement is designed to finance construction and development costs on a project-by-project basis. In this way, MPower will be provided with a flexible funding mechanism to take projects through to the operational phase, when they become revenue accretive through the generation and export of clean energy to the National Electricity Market.
The funding agreement is structured as a debt facility, with mechanisms to convert to equity in the project at a later stage, enabling both parties to benefit from a future uplift in value.
Funding for the first project comprises a $10 million facility for an 18 month term and a 12.25% interest rate.
Cash receipts during the Quarter were $1,502K which mainly relate to the Company’s service and maintenance activities. The main cash outflows were operating costs of $883K and staff costs of $606K. Net cash used in operating activities was $394K.
Following the end of the Quarter, MPower’s corporate debt facility was extended by one month to 15 August 2023 while the Company works towards finalising a longer term refinance of the facility.
Chief Executive Officer Nathan Wise commented: “The Company has made pleasing progress during the June quarter, including the formation of a strategic partnership with Evergen. We are pleased to join forces with a partner of Evergen’s calibre, as part of our strategy to build an optimised network of decentralised clean energy assets in the Australian market. The Company has also made steady progress on its project funding arrangements, which is a fundamental element in the execution of MPower’s Build Own Operate strategy. As we start the next quarter and the 2024 financial year, the Company is poised to commence the construction phase and further expand its portfolio of clean energy projects with its partners.”
Payments to related parties
Payments of $17K to related parties and their associates relate to remuneration payments 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.