21 Dec 2017 07:12
Plutus PowerGen Plc / Ticker: PPG / Index: AIM
21 December 2017
PLUTUS POWERGEN PLC ("PPG" or the "Company")
Strengthened Portfolio of Flexible Energy Projects
Plutus Powergen Plc, the AIM listed power-company focussed on the development and operation of flexible energy generation ('FlexGen') projects in the UK, is pleased to announce that as part of its strategy to expand into higher-margined gas-powered sites, PPG has lodged Capacity Mechanism ('CM') deposits for the upcoming CM auction for two 20MW Gas FlexGen sites with planning permission. CMs are awarded by the Government to ensure that electricity supply continues to meet demand; providers are paid a per MW rate for the capacity they offer to the market, which must be available when called upon by National Grid at any time during the contracted period. The consideration for the CM deposits totalled £390,000, funded in part by short-term shareholder loans of £250,000 bearing interest of 8% per annum.
The Company continues to focus on increasing its pipeline and to this end a further six gas sites totalling 120MW are in the planning process; it is envisaged that this figure will significantly increase during H1 2018. PPG is also in advanced discussions regarding the purchase of further sites with planning, that would be fast-tracked to commissioning. The various gas sites in the pipeline will be built between 2018-2019.
As per previous regulatory announcements, the cost of the build out of these gas sites is expected to be funded by asset finance (60%), a big six energy utility (20% equity) and equity and/or mezzanine finance (20%).
Charles Tatnall, Executive Chairman of PPG, said: "We are pleased to have participated in the CM auction for two gas-powered sites with planning permission. In terms of financial scale and returns, one 20MW gas site is similar to 50MW of the Rockpool sites under development. Therefore, the two sites for which deposits have been posted are equivalent to 100MW. 60% of this is 60MW equivalent and therefore our carried interest would be the financial equivalent to 75% of our Rockpool interests, a huge increase in our asset base which will be consolidated should the Company be successful in gaining CM contracts for either site. We continue to build our pipeline of projects, and through our execution strategy are solidifying our position as a leading provider of flexible power generation in the UK."
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via a Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.
**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 |
Andrew Craig | Cantor Fitzgerald Europe | Tel: +44 (0) 20 7894 7000 |
Richard Salmond | Cantor Fitzgerald Europe | Tel: +44 (0) 20 7894 7000 |
Isabel de Salis | St Brides Partners Limited | Tel: +44 (0) 20 7236 1177 |
Olivia Vita | St Brides Partners Limited | 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 due to the continued downward pressure on capacity available to National Grid to balance supply and demand, leading to its 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.