Plutus PowerGen PLC Agreement with Reliance Energy Ltd (6073Y)
September 10 2015 - 2:01AM
UK Regulatory
TIDMPPG
RNS Number : 6073Y
Plutus PowerGen PLC
10 September 2015
Plutus PowerGen Plc / Ticker: PPG / Index: AIM
10 September 2015
Plutus PowerGen plc ('PPG' or 'the Company')
Agreement with Reliance Energy Ltd to Build UK Power
Portfolio
Plutus PowerGen plc, the flexible generation developer and
operator in the UK, has concluded a formal partnership with
renewable energy developer Reliance Energy Limited ('Reliance') to
secure further flexible power generation facilities in the UK. This
arrangement, which follows the Heads of Terms announced on the 3
July 2015, is complementary to the management services PPG offers
to the five EIS companies funded by Rockpool Investments LLP. The
Board believes this agreement with Reliance has the potential to
allow an additional and faster route to market for new flexible
generation facilities and to strengthen PPG's balance sheet.
Both PPG and Reliance, which is a newly established developer of
renewable energy and flexible generation projects in the UK, will
focus on securing new project sites suitable for the construction
of flexible generation facilities. While PPG has a pipeline of
sites with the potential for over 500MW of flexible energy
generation under consideration, Reliance, in addition to funding
sources, has access to solar energy power generation sites with
existing grid connection agreements. When procured, each project
will be developed by Reliance and constructed and managed by PPG in
return for a management fee. The equity in each project will be
split 70:30, with the majority interest granted to the party that
successfully introduces the site.
Phil Stephens, CEO of PPG said, "This partnership provides us
with an excellent opportunity to build a complementary portfolio of
power projects in the UK on terms that reflect our strategic intent
to strengthen PPG's balance sheet. The agreement provides us with a
direct route to own up to a 70% stake in power generation projects
and the ability to increase the potential to monetise our existing
project pipeline."
Ben Prior, Executive Director of Reliance said, "We are
delighted to have cemented this relationship, which will enable us
to gain exposure to PPG's flexible energy generation development
and operational skills. Working with PPG will provide us with
opportunities to improve yield as well as the opportunity to use
the optionality of the power for existing solar installations. We
look forward to working closely with this experienced team to
deliver much needed power to the UK's energy market."
**ENDS**
For further information, please visit www.plutuspowergen.com, or
contact:
Charles Tatnell Plutus PowerGen Plc Tel: +44 (0) 20 8720
6562
----------------- --------------------------- ---------------------
Phil Stephens Plutus PowerGen Plc Tel: +44 (0) 20 8720
6562
----------------- --------------------------- ---------------------
Ewan Leggat SP Angel Corporate Finance Tel: +44 (0) 20 3470
LLP 0470
----------------- --------------------------- ---------------------
Katy Birkin SP Angel Corporate Finance Tel: +44 (0) 20 3470
LLP 0470
----------------- --------------------------- ---------------------
Felicity Winkles St Brides Partners Tel: +44 (0) 20 7236
1177
----------------- --------------------------- ---------------------
Elisabeth Cowell St Brides Partners 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 500MW 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 plc shareholders
as the assets are financed and built.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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