Renewable Energy Generation Ltd Update on Renewables Support (6634S)

TIDMWIND

RNS Number : 6634S

Renewable Energy Generation Ltd

09 July 2015

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

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

Update on Renewables Support

Renewable Energy Generation Limited ("REG or The Company"), the AIM quoted UK focused multi-divisional renewables company notes yesterday's announcement in the Budget that the government intends to discontinue the Climate Change Levy (CCL) exemption for renewable generators from 1 August 2015. The CCL has been a key component of the renewable support regime in the UK since 2001 and all parties in the renewable industry had understood that phase-out would not commence until after 2020.

Based on the company's initial assessment of this measure, REG expects a reduction in EBITDA of approximately GBP400,000 in the year ending 30 June 2016 for our current operational renewable plant.

Furthermore, on 18 June 2015 the Secretary of State for Energy and Climate Change announced that the Government intends to legislate to close the Renewables Obligation to new onshore wind generating stations from 1 April 2016, subject to certain grace periods. On 7 July 2015 the Department of Energy and Climate Change published further information confirming the arrangements and it is anticipated that draft legislation will follow. Based on unaudited management information the carrying value of capitalised development costs at 30 June 2015 was GBP9million. REG is currently assessing the impact of the early closure of the Renewables Obligation on the valuation of those capitalised development costs at 30 June 2015. It is anticipated this may result in a non-cash impairment charge over and above the GBP0.6m currently recognised in the 31 December 2014 interim financial statements.

Andrew Whalley, CEO of REG, said: "We are surprised by the announcement of the Government's intention to discontinue the CCL which has been in place since 2001, specifically to encourage green energy and support renewable investment. Together with the other potential regulatory changes, we are entering a new era for UK renewables. Thanks to our proven expertise across the renewable energy spectrum including wind, solar, bio-power and asset management, REG has multiple options it can deploy to maximise the value of our long pipeline of development assets and I look forward to providing further updates on our progress. "

**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 sale of power; ROCs 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 - 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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