Plutus PowerGen PLC EIS Funding Update (1760D)
22 Ottobre 2015 - 5:30PM
UK Regulatory
TIDMPPG
RNS Number : 1760D
Plutus PowerGen PLC
22 October 2015
Plutus PowerGen plc / Ticker: PPG / Index: AIM
22 October 2015
Plutus PowerGen plc ('PPG' or 'the Company')
EIS Funding Update
Plutus PowerGen plc, the flexible standby power generation
developer and operator in the UK, notes today's announcement by the
UK Government at a Public Bill Committee which outlines amendments
to the Enterprise Investment Scheme ('EIS') funding to exclude
activities that involve the provision of reserve power capacity and
generation, for example under a Capacity Market agreement or Short
Term Operating Reserve contract. The UK Government notes that such
activities are generally asset-backed and benefit from a guaranteed
income stream and mainstream financing, which removes the need for
tax-advantaged investment. This change will apply to investments
made on or after 30 November 2015. This is not retrospective and
has no effect on the companies with which Plutus has signed
management contracts and which are developing a total of 140 MW of
flexible energy generation projects.
To date, PPG has entered into management contracts with seven
flexible standby power generation companies in the UK which have
received a total of GBP25 million EIS qualifying equity from
Rockpool Investments LLP ('Rockpool'). These are managed by PPG and
the Company holds a 45% equity interest in each. Rockpool has
indicated that it will continue to fund further companies up to 30
November 2015.
Plutus' Directors have long been aware of the likely Government
legislation to draw a close to EIS funding for its flexible power
projects and as per previous news releases, it has secured
alternative funding arrangements and continues to assess other
funding proposals, all of which provide Plutus with an increased
equity participation in new flexible generation sites. As such the
directors do not believe that this latest amendment to EIS funding
will adversely affect the business.
Phil Stephens, CEO, commented, "the Company will be able to
accelerate the number of projects funded outside EIS which will
also enable PPG to bring these projects onto the balance sheet of
the Company more quickly."
**ENDS**
For further information, please visit, or contact:
Charles Tatnell Plutus PowerGen plc Tel: +44 (0)
20 8720 6562
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Phil Stephens Plutus PowerGen plc Tel: +44 (0)
20 8720 6562
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Ewan Leggat SP Angel Corporate Tel: +44 (0)
Finance LLP 20 3470 0470
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Laura Harrison SP Angel Corporate Tel: +44 (0)
Finance LLP 20 3470 0470
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Felicity St Brides Partners Tel: +44 (0)
Winkles 20 7236 1177
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Elisabeth St Brides Partners Tel: +44 (0)
Cowell 20 7236 1177
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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 over the
next three years and currently has a project pipeline of potential
development sites with over 500MW 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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