Aggregated Micro Power Holdings has secured £14.1m of funding to finance its first peaking plant project, Ashford Power Limited.
Sited on the Kingsnorth Industrial Estate in Kent, the firm will build 21 MW of natural gas reciprocating engines to capitalise on high power prices at times of peak demand.
The project won a capacity market agreement in 2015 and will begin construction immediately. Commercial operations are expected to start before 1st October 2017, according to the firm.
Finance was provided from funds managed by Triple Point Investment Management LLP and Triple Point Lease Partners, brought to the table by Guy Butler Ltd.
“This is our first peaking plant project to reach financial close,” said AMP Ceo Richard Burrell.
“AMP will earn project development fees, on-going operation and maintenance fees and has shares in the project which are subject to a hurdle return being achieved by Triple Point.”
Carlton Power misses capacity market deadline, gives up Trafford contract
Capacity market remains too low for large new gas
EDF tables changes to stop small generators driving down capacity market prices
Capacity market call sees £2,500MW price spike, Grid says ‘market working’
Free 2016 demand-side response report
Click here to see if you qualify for a free subscription to the print edition of The Energyst, or to renew.
Follow us at @EnergystMedia. For regular bulletins, sign up for the free newsletter.