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National Grid awards contracts to REG

In the UK, National Grid has awarded REG Biopower, the subsidiary of UK-based renewable energy developer and operator REG, two contracts to provide Short Term Operating Reserve (STOR) using its plant powered by waste cooking oil.

STOR allows National Grid to source reserve power in pre specified seasonal time periods to meet actual demand when greater than forecasted or during unexpected plant breakdowns.

Under the contracts REG Biopower will receive an availability payment for standing by during STOR periods and a utilisation payment for any power generated. In addition, REG Biopower will be allowed to run its plant opportunistically outside STOR hours.

REG Biopower's existing 6MW plant in Suffolk and a new 2MW Leeds facility, which is expected to be operational from August 2011, will operate the STOR contracts.

Andrew Whalley, CEO of REG, says: 'These contract awards firmly underpin REG Bio's existing plant and technology and potentially provides a solid foundation from which to grow our bioliquid business in the future. We are delighted to be partnering with NG and the provision of flexible capacity ideally complements our existing wind business.'