Alkane Energy wins contracts under new National Grid programme
Alkane Energy has scored several contracts as part of National Grid's demand side balancing reserve (DSBR) programme.
Alkemy Capital Investments
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16:55 18/04/24
The 2014/15 winter season contracts are to supply 56 mega watt capacity to National Grid during periods of high system demand over the winter season running from 1 November to 28 February.
The DSRB programme has been designed to provide additional balancing services to the UK electricity market during periods of higher demand and will provide a new income stream for Alkane, the firm said.
"This award is a reflection of Alkane's cost effective, flexible and highly reliable operating assets," it continued.
"The current generating fleet provides an ideal partner to National Grid in meeting its security of supply targets and gives Alkane confidence in bidding into the capacity market and other balancing services in the coming years."
The winter of 2014/15 will be the first year of operation for the new initiative, with the overall programme being designed to cover the winter peak period from 4pm to 8pm each weekday between November and February.
Alkane will receive a two hour warning from National Grid if it is required to generate.
The group said that it was not expecting any significant additional capital expenditure or operating costs to service this new market, which will be accommodated by its existing power response fleet.
Alkane chief executive Neil O'Brien said: "Our power response strategy is built on being a reliable, cost effective and flexible partner for National Grid. I am delighted to see that this strategy is continuing to develop as planned.
"Starting from a base in the short term operating reserve market in 2011 we have expanded operations into winter running and now DSBR. All of this will be serviced from our existing engine capacity which can be swiftly deployed to respond to a range of market demands."