11th Mar 2014 13:12
LONDON (Alliance News) - Renewable Energy Generation Ltd Tuesday said its subsidiary REG Bio-Power has secured an extension to its existing contracts to provide Short Term Operating Reserve to National Grid PLC.
The clean-technology energy development company said REG Bio's 18 mega watt Whitemoor plant, which is due for completion this Autumn, its 6 megawatt Bentwaters site in Suffolk and its 2 megawatt Leeds facility will operate the contracts which have been extended from April 2015 to March 2016.
The STOR allows National Grid to source reserve power in certain times to meet unscheduled demand.
REG Bio will receive an availability payment for standing by during STOR periods and a utilisation payment for any power generated. REG Bio's generation plant is fuelled by a patented bioliquid called LF100, recovered from used cooking oil.
"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 Chief Executive Andrew Whalley said in a statement.
Renewable Energy Generation shares were up 0.1% to 79.07 pence and National Grid shares were up 0.2% to 826.00 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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