MAST Energy Developments (MED) has signed a binding conditional agreement for the exclusive right to undertake due diligence and negotiate the potential acquisition of five peaking power sites totaling 25.85MW.
The private UK registered company targets the development and operation of flexible power plants to service the reserve power generation market.
MED is a 60 percent subsidiary of multi-asset Africa-focused energy company Kibo.
“MED is making excellent progress towards commencing operations later in the year and realising first revenues. This agreement to potentially acquire a further five sites demonstrates MED’s commitment to becoming a fully operational and competitive power supplier in the UK reserve power generation market.
“It is still in the early stages of achieving this, but we could not have hoped for a more successful start than what we have seen over the past three months,” said Louis Coetzee, Chief Executive of Kibo Energy.
Under the agreement, MED has secured, at no cost, the exclusive right to acquire five peaking power sites totalling 25.85MW from a prospective developer subject to completion of due diligence to MED or Kibo’s satisfaction.
The sites range in scale from c.2.5MW to c.7.5MW and are all 11 kilo-volt ampere (KVA).
MED has until 8 April 2019 to complete its due diligence, with a long stop date for the conclusion of share sale agreements of 31 May 2019.
Meanwhile Kibo is looking forward to updating the market on continued progress with regard to its Botswana, Mozambique and Tanzanian projects.
On the latter, the company is still awaiting a formal response to its request for clarification from the Tanzania Electricity Supply Company (TANESCO).