Plutus, partner to build flexible generation portfolio in UK

UK company Plutus PowerGen Plc (LON:PPG) said Thursday it has sealed a partnership with Reliance Energy Ltd to build a portfolio of flexible power generation facilities in the UK.

The agreement with Reliance Energy, a newly created developer of renewable energy and flexible generation projects in the UK, follows the signing of heads of terms between the companies in July. It will see the two focus on securing new project sites. Once a project has been procured, it will be developed by Reliance and built and managed by Plutus in return for a management fee. The equity will be split 70/30, with the party that successfully introduces the site getting the majority stake.

Plutus says it has a pipeline of sites under consideration with the potential for over 500 MW of flexible energy generation. Reliance, on its part, has funding sources and access to solar sites with grid connection agreements.

Plutus said the deal could allow an additional and faster route to market for new flexible generation facilities and could strengthen its balance sheet.

Reliance executive director Ben Prior said the partnership would provide exposure to Plutus' development and operational skills, as well as opportunities to improve yield and to use the optionality of the power for existing solar installations.

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