15 Dec 2015 07:00
Plutus PowerGen plc / Ticker: PPG / Index: AIM
15 December 2015
Plutus PowerGen plc ('PPG' or 'the Company')
Capacity Mechanism Contracts for Three 20MW sites in the UK
Plutus PowerGen plc, the flexible standby power generation developer and operator in the UK is pleased to announce it has successfully received Capacity Mechanism ('CM') contracts for three 20MW sites in the UK. The clearing price of £18,000 per MW per year for 15 years is in excess of PPG's forecast. Therefore each operational 20MW site awarded a CM contract will receive £360,000 per annum for a period of 15 years from 2019. The clearing price is index linked to the consumer price index ('CPI') from the date of award of the CM contract.
Two of the sites for which the CM contracts have been awarded are held through Attune Limited and Flexible Generation Limited, companies which have been established to hold the projects and to which PPG has been appointed as manager. These sites, where PPG has an interest of 45%, will be equity funded through PPG's relationship with Rockpool Investments LLP. The third site is majority owned by PPG and negotiations for its equity funding are at an advanced stage. The Company will provide a further update regarding this site in due course. Discussions in relation to asset financing for all three sites are ongoing.
Phil Stephens, CEO commented, "We are delighted to have a role in helping National Grid meet the UK's security of supply needs via the Capacity Mechanism from 2018/19. Our projects use proven technology, which runs for only a very short period of time, to ensure that UK energy customers do not overpay and allow the use of renewable energy sources more fully."
**ENDS**
For further information, please visit www.plutuspowergen.com, or contact:
Charles Tatnall | Plutus PowerGen Plc | Tel: +44 (0) 20 3705 8350 |
Phil Stephens | Plutus PowerGen Plc | Tel: +44 (0) 20 3705 8352 |
Ewan Leggat | SP Angel Corporate Finance LLP | Tel: +44 (0) 20 3470 0470 |
Laura Harrison | SP Angel Corporate Finance LLP | Tel: +44 (0) 20 3470 0470 |
Felicity Winkles | St Brides Partners Ltd | Tel: +44 (0) 20 7236 1177 |
Elisabeth Cowell | St Brides Partners Ltd | Tel: +44 (0) 20 7236 1177 |
Notes to Editors
Plutus PowerGen plc is an AIM listed company focused on the development, construction and operation of flexible stand-by power generation sites in the UK. At present, the market dynamics for flexible power generation are positive as a result of the continued downward pressure on capacity available to National Grid to balance supply and demand, leading to their announcements about possible power shortages over the next few years.
Flexible Power generators such as PPG offer a viable and timely solution to the power capacity shortfall in the UK. To this end, PPG is initially focusing on delivering 200MW of capacity over the next three years and currently has a project pipeline of potential development sites with over 700MW of power generation capacity.
PPG has a straightforward multi-revenue stream model with large and stable counter-parties and is using project/EIS funding through SPVs to finance construction of the generation assets. This structure has the benefit of limiting dilution to Company shareholders as the assets are financed and built.