Renewable Energy Generation Ltd REG Welcomes Government Support for Sector

TIDMWIND

Renewable Energy Generation Ltd

27 June 2013

Renewable Energy Generation Ltd ("REG" "The Company")

REG WELCOMES GOVERNMENT SUPPORT FOR RENEWABLE ENERGY SECTOR

The Board of Renewable Energy Generation Limited (AIM: WIND), the UK renewable energy group, welcomes the latest announcements made by the Department of Energy & Climate Change and Ofgem that set out the Government's long-term support for the UK renewable energy sector.

The Chief Secretary to the Treasury Danny Alexander and Energy and Climate Change Secretary Edward Davey have announced a wide-ranging series of initiatives and more details about the reforms, ahead of schedule, to give developers and investors the confidence to progress with new projects.

Renewable Strike Prices

Also announced were details, earlier than expected, of the proposed strike prices that will be available from 2014 - 2019 for renewable electricity, including onshore wind projects. Strike Prices effectively remove price volatility risk for electricity generated from low-carbon sources, under new long-term CfDs being established by the Energy Bill. This ensures greater certainty to generators and therefore a better deal to consumers. These prices are broadly comparable to the support levels available under the Renewables Obligation, with a number of adjustments to account for the benefits of CfDs. CfDs should make it cheaper to deliver low-carbon generation by around GBP5 billion up to 2030, because they will deliver cost of capital reductions that cannot be achieved through existing policy instruments.

In January, REG announced a strategic partnership with fund management group BlackRock to develop, construct and operate a large portfolio of on-shore wind farms. REG has established an experienced team that creates value for its shareholders by identifying sites to progress through planning and construction into operation. REG currently operates 14 wind projects across the UK with a total capacity of 67.15MW and six schemes with planning consent awaiting construction comprising a further 30MW. The Company's development pipeline amounts to around 1,000MW, with 15 projects comprising, in aggregate, 137MW already in the planning system awaiting a planning decision.

Andrew Whalley, Chief Executive of REG commented,

"We are pleased with the support that the UK government is committing to the UK renewable energy industry. The Strike Prices for renewable technologies are intended to make the UK market one of the most attractive for renewable energy developers, whilst minimising cost to the hard pressed consumer. We welcome and support these moves which should add a measure of certainty and help boost home-grown sources of clean secure energy."

ENDS

Enquiries:

 
  Renewable Energy Generation Limited 
   Andrew Whalley, Chief Executive Officer 
   David Crockford, Finance Director           +44 (0)1483 901 
   Ian Lawrence, Communications Manager         790 
  Cenkos (Corporate Broker) 
   Bobbie Hilliam/Max Hartley                  +44 (0)20 73978900 
  City Profile                                 +44 (0)20 7448 
   Simon Courtenay                              3244

Notes to editors

Renewable Energy Generation Ltd (REG) is a UK renewable energy group. Its main business is the development, construction and operation of wind farms and generating power from refined used cooking oil.

REG Windpower: based in Truro and Bath, UK, it currently operates 14 wind projects in Cambridgeshire, Cornwall, County Durham, Yorkshire, Cumbria, Lancashire and Gwynedd, with a total capacity of 67.15MW and has a development pipeline of over 1,000MW.

REG Bio-Power UK Ltd: based in Nottingham, UK: it operates electricity generation plant powered by fuel recovered from used cooking oil.

Headquartered in Jersey, REG was admitted to trading on AIM, a market operated by the London Stock Exchange, in May 2005 (AIM: WIND).

www.renewableenergygeneration.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

END

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