The two companies will work together to create value and address challenges within the UK energy market.
DONG Energy has entered into an agreement with Ashford Power Ltd, a project company developed and managed by Aggregated Micro Power Plc (AMP).
The agreement involves an innovative approach to capture market opportunities and also provides a robust and financeable solution to a market segment which faces increasing competition.
DONG Energy will be controlling the plant remotely from their 24/7 trading desk in Denmark which is responsible for identifying opportunities to optimise the operation of the plant based on changes in demand and production.
“We’re very pleased to enter into this agreement with AMP. As a company responsible for balancing one of the world’s largest wind portfolio, we have a constant focus on the short-term market which makes an asset like Ashford Power a natural fit. Given the highly flexible characteristics of the asset and our market insight, we look forward to realising its full potential,” says Søren Scherfig, Head of Trading & Portfolio Management at DONG Energy.
Chris Wickins, Project Development Director at AMP and Director of Ashford Power, adds: “This is a fantastic gas-fired flexible power generation project that helps underpin the UK’s growth in renewables. We’re delighted to partner with DONG Energy, whose power purchase agreement was instrumental in getting the project to financial close.”
The introduction of flexible assets such as Ashford Power Plant to DONG Energy’s portfolio creates strong value propositions to flexible generators outside of the traditional market.
“This contract emphasises our continued commitment to the UK market and the innovative solutions DONG Energy can offer. Together with products such as the Renewables Balancing Reserve, we believe DONG Energy is in a strong position to further prove how wind power, consumers and flexibility can work together to create value in the UK market,” says Søren Scherfig.