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Management Contracts Awarded for Two Further 20MW Projects
Plutus PowerGen plc, the flexible standby power generation developer and operator in the UK, has been awarded further management contracts, for the construction and operation of 20MW flexible stand-by electricity plants, by Portman Power Limited and Valence Power Limited being two major customers of Rockpool Investments LLP.
Rockpool has invested £3.6 million of equity into each company, which brings the total invested by Rockpool’s investors into companies to be managed by PPG to £25 million.
This agreement increases the number of management contracts granted to PPG to seven, equivalent to 140MW. Under the agreements, PPG will be paid an additional combined £300,000 per annum for the management services in addition to an equity stake of 45% in the capital of each company. This lifts PPG’s committed annual revenues from these management agreements to just over £1m.
Additionally, the Company is pleased to report that nine sites have been provisionally entered for the Capacity Mechanism auction. However, on account of the terms and conditions of the CM auction, no assurance can be made whether all nine will meet the required criteria in the stipulated timeframe.
Also, the Company has been in receipt of numerous offers of funding for the development of its portfolio, none of which involve the issuance of shares in the Company but rather in the form of debt and/ or an equity share in the underlying sites. These will be evaluated and in the event of formal agreement, the Company will make an announcement.
Phil Stephens, CEO of PPG said, “While increasing our committed annual revenues, these contracts also represent an important milestone in line with our strategy to deliver 200MW of power as quickly as practicable. We now have management contracts and non-dilutive equity funding secured for seven projects and, as demonstrated by our recent activities and discussions, we continue to progress planning, asset financing and capacity agreement negotiations to facilitate the advancement of our portfolio.”
