DONG Energy has entered into an innovative agreement with Gas Power Developments (GPD) and GAM Capital (GAMCap), project developer and manager, for the operation of three 6 megawatt (MW) flexible gas peaking plants - Prestige House, Newhouse and Clay Flatts - located in Lancashire and Cumbria in the north-west of the UK.
These power plants will be operated alongside one of the world’s largest wind portfolios owned and managed by DONG Energy and are a natural fit in providing a balanced delivery of power to the National Grid.
DONG Energy will optimise the operation of the flexible plants based on changes in energy demand and production. The control and market optimisation of the three assets, turning them on and off, will take place from DONG Energy's 24/7 trading desk in Denmark.
Søren Scherfig, Head of DONG Energy Markets, said:
“I’m looking forward to cooperating with GAM Capital. This agreement represents an opportunity for us to create new value propositions to flexible generators outside of the traditional market. The agreement also helps us continue to build our position in the UK market and proves how gas peaking plants, wind power and consumers can work together.”
Chris Isard, Operations Director at GAMCap and GPD, said:
“We’re delighted to be entering into a long-term agreement with DONG Energy on the first phase of building and operating a portfolio of flexible peaking plants. As we continue to grow our portfolio, we look forward to working closely with DONG Energy and our strategic partners to deliver maximum value from these assets."
About Gas Power Developments and GAMCap:
GPD was incorporated on 19 June 2017 by the management of GAMCap and their principle investors. GPD is owned and funded by the GAMCap management team and their principle investors with the strategy to acquire, build, own and operate a portfolio of gas-fired peaking assets. GPD is funded and mandated to scale their portfolio to a size of 200MW with an ambition of operating up to 500MW. GAMCap has a proven track record in managing and operating energy related infrastructure in the UK.
About DONG Energy:
DONG Energy (Nasdaq OMX: DENERG) is one of Northern Europe's leading energy groups and is headquartered in Denmark. Around 5,600 ambitious employees, including over 900 in the UK, develop, construct and operate offshore wind farms, generate power and heat from our power stations as well as supply and trade in energy to wholesale, business and residential customers. In 2016, the Group generated revenue of DKK 61 billion (EUR 8.2 billion). As part of our transformation to green energy, we plan to change our name to Ørsted (Nasdaq OMX: ORSTED as of 31 October). Read more at www.dongenergy.co.uk