LONDON (Alliance News) - Alkane Energy PLC Wednesday said it has won a first set of demand-side balancing contracts for the 2014-15 winter season from National Grid PLC, providing a new revenue stream for the company.
Under the contracts, Alkane will supply 56 megawatt capacity to National Grid during periods of high system demand during the winter period between November 1 and February 28.
The contracts are among the first awarded by National Grid to ensure the group is able to deal with tightening margins in the winter season.
Alkane said it does not expect any additional capital expenditure or operating costs to arise from servicing the new market, with the contract to be fulfilled using the company's existing power response fleet.
"Our power response strategy is built on being a reliable, cost effective and flexible partner for National Grid. I am delighted to see that this strategy is continuing to develop as planned," said Alkane Chief Executive Officer Neil O'Brien.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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National Grid (NG.)
Alkemy Capital. (ALK)
