Subsidairy News
New short-term power purchase agreement
Renewable Energy Generation Limited ("REG" or the "Company") (AIM: WIND), the UK renewable energy group, today announces that it has agreed an extension to its existing Power Purchase Agreements (PPAs) with Smartest Energy.
The extension covers output from the newly-acquired operating project at St Breock, the additional capacity being built at Goonhilly and the Company’s development project at Loscar. The expected annualised total output subject to the extended PPA is approximately 30 GWh.
The new PPA is effective immediately and runs through to March 2011 and is thus harmonised with the expiry of the Company’s existing output contracts. In due course REG expects to put in place longer-term PPAs enabling the Company to take advantage of attractive long term finance rates for wind power generation in the UK. Additionally, the new PPAs allow the Group to take advantage of sharply higher Winter 2010 electricity prices.
Commenting on developments, Andrew Whalley, Chief Executive Officer, said:
"The timely extension to our existing PPAs takes advantage of recent sharp rises in electricity prices and allows us to synchronise all of our PPAs across the Group.
“Later this year, we intend to refinance our operating portfolio at which point a longer term agreement will be put in place covering the Group’s total wind power output. The implementation of long-term PPAs will facilitate project financing and free up capital for the development of our new projects as they progress through planning.â€
