Renewable Energy Generation Ltd Update on Renewables Obligation Regime (8594Q)

TIDMWIND

RNS Number : 8594Q

Renewable Energy Generation Ltd

22 June 2015

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

Update on Renewables Obligation Regime

Renewable Energy Generation Limited ("REG or The Company"), the AIM quoted UK focused multi-divisional renewables company notes last week's announcement from the Secretary of State for Energy and Climate Change that the Government intends to legislate to close the Renewables Obligation ("RO") to new onshore wind generating stations from 1 April 2016.

REG confirms that its five new onshore wind projects, currently moving into construction, should comply with proposed grace periods under the proposed RO changes. The five projects, which total 38MW, are: French Farm (4MW), Rodbaston (4MW), Brackagh Quarry (6MW), Mynydd Portref (12MW) and Hallburn Farm (12MW). Their combined annual output, once operational, will be approximately 92,000MWh which will increase the company's total annual wind energy production to approximately 183,000MWh.

Bio-Power

The RO will remain available to new projects built by REG's Bio-Power until 2017. Currently the Company operates 26MW of bio-power capacity, generating power and heat through a patented bioliquid, LF100, recovered from used cooking oil.

Solar

Construction of REG's 2.6MWp Mendennick solar project is underway, whilst the Company's 12MWp Netley solar project is moving to procurement under its recently awarded Contract for Difference. REG also operates 4.5MWp solar PV on behalf of BlackRock through its Asset Management division.

REG's CEO Andrew Whalley said, "The UK Government remains committed to its international obligations to decarbonise power generation. Onshore wind remains the lowest cost, readily deployable renewable energy technology, embraced by over two thirds of the UK public. We continue to believe it should play an important role in decarbonising energy generation at the lowest cost to the consumer. REG is a diversified energy business and remains well placed to participate in the continued growth of the UK renewable energy sector."

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 sale of power; ROCs, LECs and embedded benefits; 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 or in procurement.

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 - 45MW (+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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