Alkane Energy confirms award of £14m worth of capacity mechanism agreements
Holding group Alkane Energy said the award of capacity mechanism agreements has been confirmed, following the approval of the Secretary of State.
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The group had initially announced it had won agreements covering 101MW on 19 December, though the deal remained subject to a review from the Secretary of State, which has now given the green light to the deal.
Under the agreement, which will come into effect from October 2018, the group will earn a combined additional revenue of £14.4m over the period to September 2033.
"We are delighted by the confirmation of the award of these Agreements, the largest ever contract award in Alkane's 20 year history,” said Neil O’Brien, the group chief executive.
“With a combined additional revenue of £14.4m, they provide us with long term income visibility stretching over a 15 year period."
Alkane said it will receive £19,400 per MW per year for making capacity available to support the DECC capacity programme, with 46MW new sites being secured on 15 year agreements and 55MW existing sites on one year agreements.
Alkane shares were up 3.94% at 08:41 on Monday.