Strategy

Plutus PowerGen develops numerous 200MW flexible energy generation in 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 total pipeline of over 700MW and is targeting 120MW to be operational and an additional 120MW at the post-planning stage by the end of 2017. This will be achieved by executing the following types of projects:

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 successfully commissioned its first 20MW standalone flexgen site, in time for the forthcoming Triad season. 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.

Plutus PowerGen is focused on delivering 200MW of FlexGen sites by the end of 2017 achieved by executing the following types of 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 up to five 20MW gas powered sites, which could supply flexible on-demand power to the UK grid. The Company currently has several sites under review and two sites 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
  • Merchant Power sales

Please visit the Business Model page for more information on these revenue streams.