RE: Planning Application21 Jan 2021 15:58
Copy and paste from the recent planning application scoping report for the power cable - highlights the reasons why this is a very good PPA:
SIMEC Uskmouth Powerstation (SUP) is currently going through the planning process to finalise the design and consenting phase of the conversion from a coal-fired powerstation to a waste-to-energy powerstation. This converted powerstation would have an installed capacity of 220MW. In a typical scenario, all of this power would be exported to the national grid via the transmission network with the generator receiving payment from an offtaker. As part of the conversion project, SUP has been investigating ways in which the power generated can be used locally without exporting to the national grid. Finding a local end-user would provide the following benefits:
1. Ideally an end-user would have a high base-load requirement. This is beneficial for the operation of the turbines at SUP as it limits the amount of throttling potentially required, maximising the efficiency of the powerstation.
2. The end-user and SUP would be able to enter into a formal long-standing agreement in the form of a negotiated Power Purchase Agreement (the mechanism through which the power is sold to the user). Being able to do this provides an element of certainty over the longer term, isolating the plant from the volatile electricity market. This benefits both parties.
3. It would allow SUP to design, construct, and operate the required electrical network, providing an element of control over the capital expenditure.
4. For the end-user, it provides a robust, reliable source of constant power without having to rely on the national grid (although there would be a backup supply from the grid to provide power should SUP be offline for whatever reason)
On the west side of the River Usk, in the nearby Imperial Park industrial area, there are a number of likely end-users which SUP is in discussions with.
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