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Thursday, March 17, 2011

Renewable Energy Generation Ltd Wins STOR Contract from National Grid

Renewable Energy Generation, the UK renewable energy developer and operator, apprised that its subsidiary REG Biopower (“REG Bio”) has won two contracts with National Grid (NG) to provide Short Term Operating Reserve (STOR) using its innovative plant powered by waste cooking oil.

STOR allows NG to source reserve power in pre specified seasonal time periods to meet actual demand when greater than forecasted or during unexpected plant breakdowns. Under the contracts REG Bio will receive an availability payment for standing by during STOR periods and a utilization payment for any power generated. In addition REG Bio will be allowed to run its plant opportunistically outside STOR hours.

REG Bio’s existing 6MW plant in Suffolk and a new 2MW Leeds facility, which is expected to be operational from August 2011, will operate the STOR contracts.

Andrew Whalley, REG Chief Executive Officer, said: “These contract awards firmly underpin REG Bio’s existing plant and technology and potentially provide a solid foundation from which to grow our bioliquid business in the future. We are delighted to be partnering with NG and the provision of flexible capacity ideally complements our existing wind business.”

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