MPower Group Limited announced that its solar PV /battery storage project in South Australia has reached ready-to-build status. Located in Kadina, South Australia, MPower's clean energy development comprises a 5MW solar farm with a DC-coupled 5MW/10MWh battery storage capability. In October 2022, MPower received a formal Offer to Connect for the project from SA Power Networks, which is the sole electricity distributer in South Australia.

As well as the grid connection offer, which is mission-critical to the Company's SA development plans, MPower has now also obtained all the relevant permits and planning approvals required to bring the project to ready-to-build status. The grid connection terms enable clean energy generated by the solar PV facility to be exported via a 5MW connection to the distribution network. Importantly, the project also has the benefit of an import capability that will enable the battery to be charged during periods of low or negative prices, in turn facilitating the sale of energy during peak pricing periods.

With the relevant planning and regulatory approvals now obtained, discussions with funding partners continue to progress well. MPower expects to be in position to commence construction of the first Kadina hybrid clean energy project during the course of 2023. Along with consistent projected income from the supply of clean solar power to the local energy grid, the Kadina project's battery storage capability also unlocks potential new revenue streams as the market for the provision of ancillary services into the wholesale market evolves within the broader energy transition.

Specifically, the project has been designed to provide Ancillary Market Services such as Contingency FCAS under the new Integrated Resource Provider registration category that was recently introduced as part of an Australian Energy Market Commission rule change. The rule change is designed to support the integration of battery storage into the National Electricity Market, particularly where storage and hybrid systems utilize a single connection point, which is the case with the Kadina project. The new Integrated Resource Provider category will allow the project to register and participate in a single registration category rather than under two different categories.

Further, MPower is well positioned to leverage its in-house intellectual property and management expertise to drive returns, which is already evident in-market with the successful expansion of EBITDA margins at the group's Lakeland solar/storage facility in North Queensland. MPower's clean energy credentials are being utilized to deploy the latest solar PV and battery technology for the first Kadina project. This, together with the project's exempt generator status in the National Electricity Market leave the Company particularly well-placed to monetize dynamic market conditions over the 30+ year life of the asset.