Total Gas & Power and Reactive Technologies believe they can maximise the value of solar via a hybrid power purchase agreement that exploits flexibility markets.
The companies say their ‘Enhanced PPA’ gives solar generators scope both to secure long-term revenues for their output, but also additional income via flexibility opportunities. Currently primarily imbalance markets, the technology company in future plans to bid into other niches.
The firms signed a framework agreement to collaborate in July and have subsequently won a tender for a long-term 310MW solar PPA, which they believe underscores their combined credentials.
Reactive Technologies chief operating officer, Jens Madrian, said the PPA “tackles the intermittency issues arising from renewable assets while delivering significant additional value for the off-taker and the customer”. He said the company will add-in further high value flexibility services to its platform in the coming months.
Nick Hodgson, head of embedded generation at Total Gas & Power, said the collaboration “ensures added value for solar generators and enhances our imbalance management ability” while helping wider grid stability.
Imbalance penalties are set to increase significantly from 2018, creating opportunities for businesses that can help generators and suppliers avoid up to £6,000/MWh in charges.