Green Frog Power

Key Data

Country:
UK
Sector:
Flexible Generation
Project Capital Cost:
£400 – £600m
Investment Date:
2011, 2015 and 2016
Asset Overview:

500MW of standby and flexible power capacity

The story in stats

#1

in long-term short-term operating reserve market

500MW

additional flexible power

Power Performance

Our track record in the renewable energy sector is impressive. Since 2011 our team has worked with Green Frog Power, one of the UK’s leading providers of peaking generation and other grid ancillary services to the National Grid, helping to provide a solution to the unpredictability of renewable power generation.

Our team helped the company to implement a business plan to build and operate 14 UK sites to supply short-term operating reserve under 15 year contracts to National Grid, the transmission operator.

In 2015, we extended investment in the company to deliver an additional 12 sites also focused on delivering energy at peak times. Green Frog Power’s state-of-the-art power stations are able to respond in seconds to the flexible demands of the National Grid, and contribute towards ensuring that people receive a constant, reliable supply of power when they need it.

Background

In October 2010, we entered discussions with Green Frog Power to invest in the provision of new standby generation capacity to National Grid as power supply and demand dynamics became increasingly complex with the rise of other forms of intermittent energy, such as wind.

It is National Grid’s responsibility to ensure sufficient standby generation exists and, at the time, the operator was tendering long-term contracts for additional standby capacity to balance the grid.

We signed Heads of Terms with Green Frog in February 2011 and committed to a due diligence process leading to an initial equity investment in June 2011. We then helped management to raise £60m of project funding from a major UK bank to build 14 new sites with a combined capacity of 214MW, making Green Frog Power the largest provider of short-term operating reserve to the National Grid.

We invested further equity in February 2015 and helped the management team to raise a further £60m of debt finance in two tranches to build an additional 230MW of capacity across 12 sites to provide flexible embedded generation for the electricity system. These are now in full operation.


Creating Real Value

The infrastructure team identified Green Frog Power as an opportunity to provide grid balancing services for National Grid, a consequence of the evolving regulatory framework for power generation in the UK as it moves to a low carbon economy.

The first 14 short-term operating reserve sites became operational within 18 months from the start of construction and were built on time and on budget.

Our Infrastructure team is constantly exploring ways to leverage its experience and understanding of this market to widen opportunities in this sector.

InfraRed understood our vision from the beginning and has been very supportive throughout the project.

Jeremy Taylor
Director, Green Frog Power Limited