Energy tech company, Limejump has signed a Power Purchase Agreement with DHG Hydro Ltd /Canaird River Company Limited in which Limejump will manage the generation from DHG’s 1.2MW Langwell Hydro Power Plant, located near Ullapool, Scotland.
Langwell hydro plant, courtesy of DHG Hydro
DHG Hydro has one of the largest UK portfolios of hydro-electric plants in operation or under development, outside of the major utilities. The PPA deal will provide Langwell with wholesale energy market trading access, valued at £300,000 per year, strengthens Limejump’s renewable dominated Virtual Power Platform (VPP), allowing Limejump and its customers to compete against traditional fossil-fuel power plants and ensuring that distributed sources of renewable energy are a mainstay of the UK electricity system.
In addition, with this PPA in place, Limejump can enter Langwell into National Grid’s Balancing Market (BM) as part of its VPP aggregated balancing unit - the first hydro power plant that Limejump has utilised in their aggregated balancing unit.
Langwell was constructed in 2016 and consists of an intake dam, a 3 kilometre long pipeline, a powerhouse and an outfall allowing it to react to instructions in a similar fashion to pumped storage power plants like Dinorwig. The generation profile that can be achieved by such an asset can be optimised across wholesale and ancillary energy markets, to achieve peak return trading performance.
Limejump's machine learning AI allows advanced forecasting to trade DHG’s generation at Langwell at the optimal time to provide the best return on DHG’s investment.
The type of PPA signed is via Limejump’s Track 'n’ Trade deal, whereby DHG will utilise market pricing information to ‘track’ the market and lock their price in at their optimum time. This methodology can reward sophisticated trading and flexibility with higher returns whilst managing the price fluctuation risk.
“We’re looking forward to working with Limejump in order to maximise the investment we have made at Langwell” said Nicholas Curtis, Commercial director of DHG. “Accessing markets, optimising assets and delivering investment return proves that sustainable resources, and in particular Hydro can compete with any generation type, cleanly and securely.”
Limejump’s Vice President of Sales, Joe McDonald, added that including Langwell hydro power in the company’s VPP, to combine with its other varied renewable technologies and battery storage assets, allows the company to continue to advance its ability to replicate the traditional singular brick and mortar power plants and push for full decarbonisation and a sustainable energy future.
“We are excited that sites such as Langwell are starting to see the benefits a true Virtual Power Plant can bring to smaller distributed energy sites in the UK compared to the current standard Power Purchase Agreements available from traditional suppliers” Mr McDonald said.