Renewable Energy Generation (REG) (AIM: WIND), the UK renewable energy developer and operator, today announces that its subsidiary REG Bio-Power has successfully secured an extension to its existing contracts with National Grid to provide Short Term Operating Reserve (STOR).
REG's 18MW Whitemoor plant (due for completion this autumn), the 6MW Bentwaters site in Suffolk and 2MW Leeds facility will operate the contracts, which run from April 2015 to March 2016.
STOR allows National Grid to source reserve power in pre-specified periods to meet unscheduled demand. Under the terms of the contracts REG will receive an availability payment for standing by during STOR periods and an utilisation payment for any power generated. REG's generation plant is fuelled by a patented bioliquid called LF100, recovered from used cooking oil.
Andrew Whalley, REG Chief Executive Officer, said: "STOR will become increasingly important to the UK as ageing coal-fired power plant is closed under the Large Combustion Plant Directive thus potentially increasing system volatility. REG Bio-Power has demonstrated its reliability in meeting the demands of the STOR programme over several years of operation. The addition of our new capacity at Whitemoor should ensure that REG Bio-Power makes a significant contribution to REG's overall business".
Source: Renewable Energy Generation