Plutus PowerGen Plc / Ticker: PPG / Index: AIM

21 May 2015

Plutus PowerGen plc ('PPG' or 'the Company')

Management Contract Awarded for Fifth 20MW Project

Plutus PowerGen plc, the AIM listed power company focused on the development, construction and operation of flexible stand-by electricity generation in the UK, announces that it has been awarded two further management contracts, for the construction and operation of 20MW flexible stand-by electricity plants, by Precise Energy Limited and Equivalence Energy Limited being two major customers of Rockpool Investments LLP.  Rockpool Investments LLP have invested £3.6 million of equity into each company, which brings the total invested by Rockpool investors into companies to be managed by PPG to £17.8 million. 

This agreement brings the total number of management contracts granted to PPG to five, equivalent to 100MW.  Under the agreements, PPG will be paid £150,000 per annum by each company for these services in addition to an equity stake of 45% in the capital of each company.

Phil Stephens, CEO of PPG said, "PPG has successfully won management contracts to construct and operate five 20MW sites from five major customers funded by Rockpool Investments LLP in which we have a substantial equity holding in each.  We have now achieved equity funding sufficient to fund 50% of our original target of 200MW of flexible stand-by energy in the UK within 10 months of our re-admission to AIM.  We believe this is a significant achievement for the Company where we continue to pursue multiple opportunities to develop and expand our business plan and portfolio of energy generation sites across the UK."

**ENDS**

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Notes to Editors

Plutus PowerGen plc is an AIM listed company focused on the development, construction and operation of flexible stand-by power generation sites in the UK. At present, the market dynamics for flexible power generation are positive as a result of the continued downward pressure on capacity available to National Grid to balance supply and demand, leading to their announcements about possible power shortages over the next few years.

Flexible Power generators such as PPG offer a viable and timely solution to the power capacity shortfall in the UK. To this end, PPG is initially focusing on delivering 200MW of capacity over the next three years and currently has a project pipeline of potential development sites with 500MW of power generation capacity.

PPG has a straightforward multi-revenue stream model with large and stable counter-parties and is using project/EIS funding through SPVs to finance construction of the generation assets. This structure has the benefit of limiting dilution to plc shareholders as the assets are financed and built.