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Quarterly Report

For the period ending on 31 March 2022



Sydney – 29 April 2022 – MPower Group Limited (ASX: MPR)



MPower, Australia’s leading specialist renewable energy, battery storage and microgrid business, is pleased to provide the following updates on its activities for the quarter ending on 31 March 2022 (the ‘Quarter’).



Operational overview

During the Quarter, MPower made substantial progress establishing its planned Build Own Operate (BOO) portfolio of 20, 5MW renewable energy projects with an estimated end value of $150+ million. The Company focused on progressing green energy financing options for its BOO portfolio during the Quarter and expects to report more fully on portfolio funding during the June 2022 quarter.


First three Build Own Operate projects


MPower has entered into separate binding Asset Purchase Agreements with respect to the acquisitions of its first three Build Own Operate projects at Narromine (NSW), Mangalore (Victoria) and Faraday (Victoria). The three sites are expected to be shovel ready at various stages in this first half of CY2022. Once shovel ready status has been achieved and each project is fully permitted, completion of the asset purchases will take place.


All of the first three projects advanced during the Quarter, with MPower actively working in collaboration with its development partners to ensure the projects are high-quality assets that incorporate the latest available technology.


The Narromine site in NSW, near Dubbo, is in its final stage of development having already achieved an ‘Offer to Connect’ from Essential Energy (refer ASX announcement: 30 September 2021). The offer enables the project to be connected into the distribution network and become a participant in the National Electricity Market.


Located approximately 120km North of Melbourne, the advancement of the Mangalore project continued during the Quarter, including the application for the project to be connected into the National Electricity Market. The application follows a planning permit being granted by the Victorian Department of Environment, Land, Water & Planning in December 2021 (refer ASX announcement: 15 December 2021).


The Faraday project, located approximately 100km from Melbourne, covers an area of 14ha and was selected due to a strong local demand and attractive future load prospects. The project includes over 11,000 Bifacial PV Modules with the capacity to produce more than 11,500MWh of electricity in its first year.


BOO pipeline


MPower has been active in expanding its pipeline of potential BOO projects during the Quarter. In addition to the first three BOO projects that are under Asset Purchase Agreements, the Company has exclusivity over a further seven projects which are being progressed. Further, MPower has several new projects that are currently being assessed and negotiated with its development partners.


NSW battery storage project


MPower’s landmark 1.5MWh grid connected battery storage project entered its service and maintenance phase during the Quarter following a key milestone of successfully achieving final acceptance with Endeavor Energy. Final acceptance was achieved after stringent field-testing provided the Company with significant validation for the solution for other potential operators and implementation into MPower’s BOO portfolio of renewable energy projects.

Image 1: 1.5MWh grid connected battery storage project in NSW


Development of hybrid solar battery projects


Earlier in the financial year, MPower released details of two hybrid solar battery projects being developed in South Australia. The projects aim to capitalise on existing pricing opportunities as a result of negative daytime pricing across South Australia. A hybrid 5MW solar farm with a DC-coupled 5MW/10MWh battery project is being planned at each site.


Development of the two hybrid solar battery projects advanced with planning approvals and the connection application process underway.


All costs associated with the development of the two projects are being expensed.


Portfolio funding


With MPower’s first three Build Own Operate projects nearing shovel-ready status, the Company has significantly progressed negotiations with a number of green energy financiers. Financing will support the planned development of the Company’s BOO portfolio. MPower expects to report more fully on progress in relation to portfolio funding during the June 2022 quarter.



Financial overview

MPower’s cash balance was $1.301 million at the end of the Quarter. Cash receipts from operating activities were $984K which predominantly relate to the Company’s service and maintenance activities. Net operating cash outflows were $991K for the Quarter, with the main items of cash outflows related to staff costs of $909K and operating costs of $847K.



Payments to related parties

Payments of $173K to related parties and their associates predominantly relate to salary payments to management as well as remuneration to the directors of the company.



Comment

Chief Executive Officer Nathan Wise said: “MPower’s transition to predominantly being an owner and operator of renewable energy sites in Australia gathered considerable pace during the period and we have an excellent foundation in place to capitalise on this progress. Particularly noteworthy is the interest we are garnering from suitably experienced and credentialed financiers that see our 5MW projects as being highly investable. Sector tailwinds remain favourable and we are primed to deliver significant value for shareholders in the coming quarters as our BOO program advances.”



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.