Plutus PowerGen plc / Ticker: PPG / Index: AIM

12 December 2016

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

Capacity Mechanism Contracts Awarded for Three UK 20MW Sites

Plutus PowerGen plc, the flexible standby power generation developer and operator in the UK, is pleased to announce it has successfully received Capacity Mechanism ('CM') contracts for three 20MW sites in the UK.

The sites for which the CM contracts have been awarded are held through Equivalence Energy, Precise Energy and Valence Power; companies which have been established to hold the projects and to which PPG has been appointed as manager.   These sites, where PPG has an interest of 45%, will be equity funded through PPG's relationship with Rockpool Investments LLP. 

Each operational site awarded a CM contract will receive an additional £450,000 in revenue per annum for a period of 15 years, commencing 2020.

Phil Stephens, CEO of PPG, commented, "Securing three contracts in this latest capacity auction is another major step in the advancement of our strategy to deliver at least 200MW capacity by the end of 2017.  This is yet further good news following the commissioning of our first 20MW project in Plymouth and follows our partnership agreement with a Big Six utility firm to fund up to 20% of future renewable energy projects, announced two weeks ago.   As flexible, short running power generation sites increasingly prove their worth in helping National Grid meet the UK's supply needs, so interest in our low-cost solution continues to gain traction."

**ENDS**

For further information, please visit www.plutuspowergen.com, or contact:

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 by the end of 2017 and currently has a project pipeline of potential development sites with 700MW 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.