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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 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.”
