Renewable Energy Generation Ltd Update on Project Delivery and ZDP (0612T)

TIDMWIND

RNS Number : 0612T

Renewable Energy Generation Ltd

15 July 2015

Renewable Energy Generation Limited / Ticker: WIND / Index: AIM

Renewable Energy Generation Limited ("the Company" or "REG")

Update on project delivery and ZDP

Renewable Energy Generation Limited, the UK focused multi-divisional renewables company, announces that further to its announcement of 26 June 2015, it has decided not to proceed with the proposed issue of zero dividend preference shares ("ZDP Shares").

Current sentiment in the debt markets, augmented by changes in the regulatory environment for onshore wind generating assets have, in the Board's view, reduced the attractiveness of the ZDP Shares as a means to finance delivery of projects under the Government's revised Renewables Obligation and Feed-in Tariff regimes.

The Board believes it is in the best interests of ordinary shareholders that the Company's portfolio of 150MW of consented renewable energy projects be delivered by means of its existing and proven funding strategy. This includes a combination of third party asset finance, the recycling of capital through selective asset sales, and the reinvestment of revenues generated from our existing portfolio of 111MW across our wind, solar and bio-power divisions.

REG's CEO Andrew Whalley said, "REG is a revenue generative and asset backed renewable energy company. We have always had multiple funding options at our disposal with which to roll-out our growing portfolio of consented assets to maximise returns for our shareholders. I look forward to providing further updates on our progress, as we look to deliver on our objective to build and manage a diversified portfolio of UK renewable energy projects across our wind, solar and biopower divisions with a combined capacity of 300MW within three years."

**ENDS**

For further information please visit www.renewableenergygeneration.co.uk or contact the following:

 
 Andrew Whalley 
  Chief Executive     Renewable Energy Generation    [phone] 
  Officer              Ltd                            796 
 David Crockford      Renewable Energy Generation    [phone] 
  Finance Director     Ltd                            796 
 Ian Lawrence 
  Communications      Renewable Energy Generation    [phone] 
  Manager              Ltd                            796 
                                                     [phone] 
 Bobbie Hilliam       Cenkos (Broker)                 8900 
                      Smith & Williamson 
                       Corporate Finance Limited     [phone] 
 Martyn Fraser         (Nominated Adviser)            2213 
                      St Brides Partners             [phone] 
 Felicity Winkles      (Public Relations)             1177 
                      St Brides Partners             [phone] 
 Frank Buhagiar        (Public Relations)             1177 
 

Notes to editors

Renewable Energy Generation Ltd (REG) is an AIM listed UK focussed multi-divisional renewables company. The Company has four distinct divisions: wind, bio-power, solar and asset management which offer multiple revenue streams. REG currently operates 111MW of power in UK and it is the Company's strategy to grow its portfolio to 300MW across its four divisions in the next three years.

REG Windpower: Currently operates 11 wind projects in Cambridgeshire, Cornwall, County Durham, Yorkshire, Lancashire, Cumbria and Gwynedd, with a total capacity of 34.7MW. REG has a growing portfolio of wind sites ranging in size from single turbine sites to six turbine wind farms. It has recently signed an agreement with Gamesa Eólica, S.L, a leading global wind turbine manufacturer, to supply 19 wind turbines for five new wind farm sites which once in operation will see wholly owned wind power operations almost double to 72.7MW. Furthermore REG has approximately 200MW of wind projects in the planning system awaiting consent.

REG Bio-Power UK Ltd: Generates renewable energy through a patented bioliquid recovered from used cooking oil. REG operates 26MW in the UK to generate power and heat. Projects generate income from the opportunistic sale of power and contracts with the National Grid STOR service.

REG Solar: Solar power generation in the UK, REG operates 4.5MW solar PV on behalf of BlackRock through its Asset Management division. REG has a further 61.6MW consented, in procurement or under construction.

REG Asset Management: Full spectrum construction and asset management of wind and solar projects on behalf of third parties in the UK. REG has 60.5MW of projects managed for BlackRock - 46MW (+10MW pipeline) wind and 4.5MW solar with management fees linked to % of revenue generated per project.

Furthermore REG works with best-in-class blue chip partners, including BlackRock, the world leading fund management group, Caterpillar, the world leading engineering group, and Veolia, the UK leader in environmental solutions, to deliver its diversified and profitable portfolio.

Headquartered in Jersey, REG was admitted to trading on AIM, a market operated by the London Stock Exchange, in May 2005 (AIM: WIND).

This information is provided by RNS

The company news service from the London Stock Exchange

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