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.
Related stories:
Reactive Technologies: UK system inertia measured for first time
Ørsted predicts higher flexibility revenues as imbalance stakes increase
Solar developers get nod for 10MW Perthshire battery scheme
Small is beautiful, says UK’s largest solar fund
As solar generation makes history, National Grid starts to feel the burn
Solar and storage must bow to grid king
Next Energy buys 22MW of solar farms
Kiwi Power to build 4MW behind meter battery in south Wales
CHP unit ‘earns extra £273 every hour it participates in Dong’s imbalance service‘
Anesco builds ‘subsidy free’ solar and storage farm
Solar farms with batteries can keep earning Rocs
As solar subsidies wane, investors plan 2.3GW of battery storage projects
17% of UK solar capacity ‘to be sold within 12-18 months’
Sheffield University launches three day solar forecasting tool
Big fish: BlackRock and Lightsource target £1bn solar portfolio
Solar PV hits 12GW, further 3GW in planning
United Utilities plans £55m solar investment
National Grid procures 138.6MW of demand turn up to balance solar in summer
National Grid to extend demand turn-up running hours, procure more
National Grid says impact of solar requires greater system flexibility
I can’t really tell how the agreement works. Are details available?
Over to Total G&P and Reactive I guess (I’ve emailed your question to them).
Thanks! I am very interested in whether the PPA structure would have an analogue in rate design for prosumers.
Hi Carl, the solution is for grid scale solar PV. I will however be interested to understand the problem your question on prosumers so please get in touch with me at sammyb@reactive-technologies.com