Bordesley T-4 Capacity Market Auction Results

RNS Number : 6875C

Mast Energy Developments PLC

24 February 2022

 

Mast Energy Developments PLC

(Incorporated in England and Wales)

(Registration Number: 12886458)

Share code on the LSE: MAST

ISIN: GB00BMBSCV12

("MED" or "the Company")

24 February 2022

Mast Energy Developments Plc ("MED" or "the Company")  

Significant Upside in Cashflow for Bordesley Project Following T-4 Capacity Market Auction Results

Mast Energy Developments Plc, the UK-based multi-asset operator in the rapidly growing Reserve Power market, is pleased to announce that pursuant to the T-4 Capacity Market Auction results, the   100% owned 5 MW Bordesley Project was successful in securing a Capacity Market (CM) contract of £30.59/kW/pa for a period of 15 years.

The T-4 Capacity Market price is £ 22.19/kW/pa more than the Company's original reference price of £ 8.4/kW/pa, as published in the T-4 Capacity Auction for delivery in 2021 / 2022. This was used as the base case figure in the Company's financial model for preparation of the Company's prospectus, released at the time of listing in April 2021. The higher Capacity Market price will result in an increase c. £ 105,935 in annual cashflow which translates into a total of c. £ 1,6m additional income over the contract period of 15 years.

Louis Coetzee, Non-Executive Chairman commented:   "The increase in capacity market prices as well as electricity prices present a uniquely lucrative opportunity to record additional revenue for Bordesley once the project reaches steady state operation. The significantly higher electricity prices of the past year will also impact positively on the rest of the Company's project portfolio and the Company is currently busy reviewing its financial model in this regard."

Paul Venter, Chief Executive Officer commented:  "We are pleased to secure this capacity market contract, that will increase revenue and cashflow for the Bordesley project."

Further information on the Company, including the prospectus published in conjunction with Admission, can be found on the Company's website: www.med.energy  

ENDS

For further information please visit www.med.energy or contact:

Louis Coetzee	info@med .energy	Mast Energy Developments Plc	Non-Executive Chairman
Jonathan Critchley & Keith Swann	[phone]	Clear Capital Markets	Joint Broker
Chris Hardie & Sarah Mather	[phone]	WH Ireland Limited	Joint Broker

 

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