Strategy

Plutus PowerGen is focused on developing a portfolio of 20MW FlexGen sites across the UK.

Demand for these types of projects is underpinned by structural changes to the UK’s power generation mix, which is seeing an increasing proportion of intermittent, renewable power introduced as legacy fossil capacity is retired. Plutus PowerGen has a large pipeline of FlexGen projects, which will be executed in different ways:

Standalone FlexGen sites (renewable-fuel powered generator facilities)

The Company envisages that its initial portfolio will be comprised of nine Rockpool-funded investee company sites and four majority owned (non-EIS) Plutus PowerGen sites. In November 2016, the Company commissioned its first 20MW standalone flexgen site, and has since commissioned a further five sites. The Company also continues to pursue its non-dilutive investment model by holding majority stakes (typically 80%) in non-EIS funded, standalone green fuel generation sites. With this in mind the Company agreed an indicative partnership with a Big Six utility company to fund 20% of future renewable fuel and gas powered projects.

SolarFlex sites (co-located solar and biofuel generator facilities)

A key pillar of Plutus PowerGen’s strategy is to establish SolarFlex facilities, where its generators are co-located, and share grid connections, with solar farms. Its partnership with Reliance Energy Limited, and advanced talks with several solar farm operators, demonstrate both the technical feasibility of the strategy and the existence of willing counterparties. A compelling characteristic of SolarFlex facilities is that Plutus PowerGen’s generators use the connection when not required by the solar farm, hence the technologies are highly complementary and allow more efficient utilisation of connections. By providing an additional return to the solar farm through the strategic cooperation, Plutus PowerGen is helping to accelerate the development of solar farms without subsidy. This SolarFlex model gives us a rich seam of sites in the pipeline where connection to the Grid already exists.
Partnerships with renewable energy providers will enable Plutus PowerGen to pilot the installation of storage assets on these sites to evaluate the real-life performance and commercial viability of mixing firm, exhaustible and intermittent technologies on a single connection. Assessment of these assets’ real-world performance should allow Plutus PowerGen and its partners to attract mainstream investment thereby allowing SolarFlex sites to become an attractive reliable alternative to fossil fuel-based power stations.

Gas-powered energy generation sites

Plutus PowerGen is focused on diversifying its project portfolio. Central to this strategy is the identification of alternate fuel sources with a lower carbon-footprint, which can provide the company with an additional revenue stream. In partnership with a specialist UK-based energy company, Plutus PowerGen is expanding its power supply capabilities into gas, with plans to construct a number of 20MW gas powered sites, which could supply flexible on-demand power to the UK grid. The Company currently has several sites under review and several in the planning stages. All Plutus PowerGen projects will derive revenue from multiple sources. The different markets for flexible power and the secured management contracts, means that Plutus PowerGen has several sources of revenue upon which to build:
  • Short Term Operating Reserve (STOR)
  • Firm Frequency Response (FFR)
  • TRIAD (short term)
  • Merchant Power sales
Please visit the Business Model page for more information on these revenue streams.