REG extends reserve power contracts with UK's National Grid

UK firm Renewable Energy Generation Ltd (LON:WIND), or REG, said Wednesday it has extended its short term operating reserve (STOR) contracts with National Grid (LON:NG) for 26 MW of bio-power plants.

The said power station run on bioliquid recovered from recycled waste cooking oil.

REG said the STOR deal for the 18-MW power plant in Whitemoor has been prolonged by six months to October 2016. Also, the company has agreed a one-year extension to March 2017 for the other 8 MW of REG bio-power plants operating under STOR.

The short term operating reserve contracts allow the National Grid to secure reserve power in pre-agreed periods to cover unscheduled power demand. REG plans to further increase its STOR capacity in the coming 18 months because the UK’s energy generation fleet is aging and the need for reserve power is expected to increase. The firm has 68 MW of bio-power capacity at various stages of development.

Under the STOR agreements, REG receives payments both for the time its power plants are on stand-by and for the power it produces.

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