Dear All,
Below we provide our quarterly update for Megawatt Mosaic (“MM”) up to 31st March 2023.
Headlines
- Megawatt Mosaic has partnered with two leading developers to deploy 1.0 GWn (GigaWatt Nominal) of Battery Energy Storage System (BESS) by the end of 2023. We have increased the scale of the business: 777 MWn (6 projects) started at end Q4 2022 (with 600MWn having received viable technical and economical grid capacity rights at end Q1 2023) vs 256MWn forecast.
- Megawatt Mosaic has hired Helen Passfield (Renewable Energy Developer and Asset Manager previously with Allianz, Octopus, Lightsource and Impax) as CEO, in order to be able to extend capabilities from Pre-Construction Development, through to Construction, Operation and Asset Management.
- In summary, we have scaled, diverfisied and extended the services we can provide to clients.
- Megawatt Mosaic has partnered with two leading developers to deploy 1.0 GWn (GigaWatt Nominal) of Battery Energy Storage System (BESS) by the end of 2023. We have increased the scale of the business: 777 MWn (6 projects) started at end Q4 2022 (with 600MWn having received viable technical and economical grid capacity rights at end Q1 2023) vs 256MWn forecast.
Background to Megawatt Mosaic
MM is a developer of BESS (Battery Energy Storage Systems) and Utility Scale Solar Developments.
Since June 2022, MM and early partners have been analysing the market for the best sites for BESS and Solar around Europe with the anticipation of completing early-stage feasibility studies on potential sites and selling on, or, completing full pre-construction development and selling on. In total, ourselves and partners have analysed circa 200 different nodes and substations.
Pre-construction development of environmental projects has been beset by permit delays over recent years. MM’s bet is that a paradigm shift in the market would occur due to the absolute necessity for energy storage now. These thoughts are now well supported with grid connection applications taking circa 50 days for BESS as opposed to circa 300 days for a typical solar or wind application.
Deployment
As a result of our analysis of grid networks across Europe, we are now deploying, along with our partners, pre-construction development funds, with the following quarterly targets:
Wave 1 Deployment:
- Target 500MWn in grid authorization process by end Q1 2023, 4 projects
- Achieved 777MWn in grid authorization process at end Q1 2023, 6 projects, 600MWn grid capacity granted
Wave 2 Deployment:
- Target 200MWn in grid authorization process by end Q2 2023, 2 project
Wave 3 Deployment:
- Target 100MWn in grid authorization process by end Q3 2023, 1 project
Wave 4 Deployment:
- Target 200MWn in grid authorization process by end Q4 2023, 2 projects
Improvements to The Business’s Operations
We utilised the capabilities of our network and made changes that would be advantageous to the business. These are as follows:
We stripped as many overheads from the business as possible, leaving the business with an expense run rate outside of investment into project development of £5,000 per month. This is considerably reduced from the projections of circa £23,000 per month we had envisaged.
We signed an agreement with known counterparties, to provide additional financial support to our project opportunities. In short, we jettisoned fixed costs and moved to a performance co-development and co-investment model, which allows for greater profits with increased diversification.
We appointed Helen Passfield, a renewable energy asset manager (Impax, Alliance, Octopus, LightSource etc), as CEO, so we are able to move along the value chain faster into construction, operation and asset management when the time comes.
In summary
In short, a phenomenal amount of work has been completed in the preparation for trade of MM and we have arrived at the right place at the right time, due to the absolute necessity for voltage optimisation, grid balancing and energy storage – the benefits of BESS.
We have other project opportunities that we are looking to deploy on now with the remaining funds in MM and will advise on progress in our next quarterly update at the end of Q2. We anticipate MM will receive revenues from WAVE1 by end of Q3 2023 and at this stage we may fund again. Alternatively, our next funding round is planned for Q1 2024.
All facts and projections herein are correct to the best of our knowledge as of publication on 31st March 2023. Please do not hesitate to come back to me with any questions either by phone (07832 100165) or email nickd@megawattmosaic.com, or simply reply to this email.
To let us know that you have read this, and so we can monitor engagement we would be very grateful if you could just click here and then we will know you have received the update: www.megawattmosaic.com.
Kind Regards
Nicholas Dimmock (BA MBA CASS)
Director of Investor Relations
Megawatt Mosaic Ltd
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