Renewable Energy Generation (AIM: WIND), the UK renewable energy developer and operator, today announces that its subsidiary REG Biopower (“REG Bio”) has won two contracts with The 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 Biopower will receive an availability payment for standing by during STOR periods and a utilisation payment for any power generated.In addition REG Biopower will be allowed to run its plant opportunistically outside STOR hours.
REG Biopower’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 Biopower’s existing plant and technology and potentially provides a solid foundation from which to grow our bioliquid business in future. We are delighted to be partnering with NGC and the provision of flexible capacity ideally complements our existing wind business.”
A further update on REG Biopower and REG Wind will be issued in the Group’s half year results, which will be announced on Monday 21 March 2011.