For the period ending on 31 December 2023
- Master Supply Agreement with Trina Solar, one of the world’s leading global suppliers of photovoltaic (PV) solar panels
- Agreement terms stipulate that Trina Solar will supply an initial 39.5MWp of solar modules and 31.2MWp of TrinaTracker Vanguard 1P trackers, phased for delivery to suit MPower’s project rollout
- Key advancements in the development of the Narromine Renewable Energy Project; design phase substantially completed along with procurement of key equipment to commence site works in early CY2024
- Continued development of project pipeline and advancement of project funding initiatives to support the rollout of MPower’s multi-project clean energy portfolio
Sydney – 31 January 2024 – 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 December 2023 (Quarter).
Operational activities in the December Quarter were highlighted by successful negotiations for a Master Supply Agreement with Trina Solar, which provides the Company with a long-term supply source for best-in-class solar modules and solar trackers to align with the rollout of its multi-project development strategy.
MPower also made key advancements on detailed design and equipment procurement at its Narromine Renewable Energy Project, after successfully acquiring all development rights for the project in the previous quarter. Along with strong execution of its stated project development pathway, the Company continued to advance project funding initiatives to support the rollout of MPower’s multi-project clean energy portfolio.
Master Supply Agreement with Trina Solar
During the Quarter, MPower announced that it had entered into a Master Supply Agreement (MSA) with Trina Solar, a major global supplier of photovoltaic (PV) solar panels (refer ASX Announcement 30 October 2023).
The strategic agreement allows MPower to build pricing certainty into its supply chain, with the benefits of economies of scale and flexible implementation on a project-by-project basis to best assist its planned rollout of utility-scale solar farms across Australia’s eastern states.
Under the terms of the agreement, Trina Solar has agreed to supply an initial 39.5MWp of solar modules and 31.2MWp of TrinaTracker Vanguard 1P trackers, phased for delivery to suit MPower’s project development timeline.
The agreement leverages Trina Solar’s market position as the only in-market supplier that manufactures both modules and trackers, which allows for streamlined distribution and rapid installation.
The first deployment of Trina Solar components commenced during the Quarter, as part of construction development works at MPower’s Narromine Renewable Energy Project, which is fully funded with all project rights secured (refer ASX Announcement 1 September 2023).
Narromine Renewable Energy Project – Construction Update
During the Quarter, MPower achieved a number of important project milestones with respect to the development of its fully-owned Narromine solar asset, after acquiring 100% of the project rights – including the Connection Agreement for connection to the grid, land rights and key planning approvals – in the previous quarter.
Construction remains fully funded from existing project facilities, and during the Quarter MPower undertook detailed design works using its in-house capabilities, which are now substantially completed. Key materials and equipment for the project were also procured during the Quarter, with the project on track to commence site works in Q1 CY2024 both on-time and on-budget.
With the construction phase advancing, MPower expects that the Narromine project will be fully operational and generating revenue through export sales for solar energy during the course of the 2024 calendar year.
Investment outlook
Following a strategic debt and equity transaction during the previous quarter from diversified Australian investment group Oceania Capital Partners Limited, MPower has continued to advance its project funding plans for the company’s broader project portfolio.
The Company is uniquely positioned within the market given its extensive experience across the full life-cycle of distribution-level hybrid solar and battery projects, including development, design, construction, operation and maintenance.
The Company’s development strategy, which targets a portfolio of over 30 utility-scale solar and battery projects across Australia’s eastern states, represents an attractive investment proposition and an immediate opportunity for investors to deploy capital for near-term value-add clean energy projects.
Financial overview
Cash receipts during the Quarter were $1,211K which mainly relate to consistent ongoing revenues generated through the Company’s service and maintenance activities together with receipts from the Company’s 100% owned project at Lakeland, Queensland. The main cash outflows were operating costs of $900K and staff costs of $1,016K, including resources involved in the delivery of the Narromine project. Net cash used in operating activities was $1,151K which includes costs associated with project construction activities that are capitalised as assets on the consolidated balance sheet.
Chief Executive Officer Nathan Wise commented: “Developments in the December quarter further reflected the group’s ongoing momentum. The strong execution of our Build Own Operate strategy, along with an established track record in the development of profit-generating solar & battery projects, has been supported by the strategic partnership formed with Trina Solar.”
“Near-term, we are pleased by the progress at Narromine, where pre-construction work is now complete and commissioning is on track for later this calendar year. We look forward to providing more updates on construction at Narromine as well as the development of our broader project development timeline in the coming months.”
Payments to related parties
Payments of $264K to related parties and their associates relate to remuneration payments made to the directors of the company.
Ends
Contact
For further information, please contact:
Nathan Wise
Chief Executive Officer
(02) 8788 4600
Ben Jarvis
Six Degrees Investor Relations
0413 150 448
This announcement has been authorised by the board of MPower Group Limited.
About MPower
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.