MPower generates first revenue from commercial operations at Narromine solar project

MPower Group (ASX: MPR) has generated the first revenue at full capacity from its Narromine solar project in New South Wales following commissioning and connection to the national electricity market.

The renewable energy and battery storage development company has adopted a merchant market revenue strategy, with project revenues determined by the prevailing wholesale spot prices for energy and large-scale generation certificates.

MPower continues to assess offers from potential offtake parties to secure long-term revenues.

‘Key achievement’

Chief executive officer Nathan Wise said the start of commercial operations was a key achievement for the company.

“The attainment of this milestone for the Narromine project is a testament to the skill and capability of the MPower team,” he said.

“We look forward to continuing to expand our portfolio of clean energy assets and become part of Australia’s broader energy transition.”

Narromine project

The Narromine solar project will utilise bifacial photovoltaic modules, single-axis tracking and central inverter technology and has the capacity to produce more than 14,000 megawatt-hours of energy in its first year of operation.

The project is being bankrolled by global investment firm AMPYR Energy under a strategic agreement secured in March.

The agreement has been structured as a debt facility, with mechanisms to convert to equity in the project at a later stage.

At the time, MPower said the agreement with AMPYR reflected a “vote of confidence” from one of the world’s leading multinational renewable investment groups.

MPower acquired 100% equity in the Narromine project in August, and site works commenced in February.

Build-own-operate strategy

Narromine is the first development that MPower has owned, constructed, and commissioned under its ‘build-own-operate’ strategy.

The company aims to secure rights over renewable energy sites during or at the end of their development phase and acquire the assets once development has been completed.

MPower works to leverage its in-house capability and experience to increase the revenue streams available from each individual project opportunity.