YLEM Energy to support 5MWe peaking site
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Client
Terra Firma Energy
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Industry
Energy
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Service
O&M
Background
Terra Firma Energy is a leading investor, developer, and operator of energy generation assets across the UK. Their expanding portfolio includes gas peaking plants that support the UK’s energy grid by providing flexible, on-demand power during peak demand periods. As part of their ongoing expansion, Terra Firma developed a 5MWe gas peaking site in Droitwich, incorporating advanced MTU 20V4000 series (2.5 MW) engines installed by their EPC contractor.
To ensure the long-term operational success of the site, Terra Firma’s funders, Close Leasing, required a comprehensive Operations & Maintenance (O&M) agreement before releasing the final tranche of funding. Given YLEM Energy’s strong track record of supporting Terra Firma’s other sites, including Burtonhead Road and Miners’ Road, they were the natural choice for delivering the O&M solution at Droitwich.
Challenge
Key Challenges & Solutions
- Tight Contract Timeline: With Close Leasing requiring a signed O&M contract before releasing funds, YLEM worked efficiently to finalize negotiations within 3-4 weeks.
- Multiple Stakeholders: YLEM Energy managed discussions with funders (Close Leasing), legal advisors (CMS), and the client (Terra Firma), ensuring alignment among all parties.
- Seamless Implementation: By finalizing contractual details in advance, YLEM facilitated a smooth transition from commissioning to operational support, minimizing downtime risk.
Solution
Drawing from its extensive experience in operating and maintaining MTU gensets—both on its own sites and for other clients such as Conrad Energy—YLEM Energy played a crucial role in structuring an O&M contract that met the needs of all stakeholders. Leveraging pre-existing agreements with Terra Firma and Close Leasing, YLEM streamlined contract negotiations, ensuring swift approval and execution.
A critical advantage of this approach was that the ~7-year O&M contract was agreed upon prior to the actual installation of the engines. This early agreement enabled YLEM Energy’s engineering team to be actively involved in the commissioning phase, allowing them to familiarize themselves with the site and optimize performance from the outset.
Having YLEM Energy on board as their O&M partner gives Terra Firma, and their funders, the peace of mind that the plant will be available to operate at its optimum.
With expertise built on operating its own plant, including MTU gensets, YLEM Energy were able to demonstrate real-world experience to Terra Firma’s technical personnel which gained immediate credibility.
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Richard Meakin — DirectorTerra Firma Energy, are again delighted to have contracted Ylem Energy to support the next of our power generation sites to go into operation. Along with our investors, we see Ylem Energy playing an integral part in the further development of our power generation portfolio as we put the ongoing support of our gas engine fleet into the safe hands of their expert Operations Team.
Result
Contract Secured: YLEM Energy secured a ~7-year O&M contract for the Droitwich site, covering all installed gensets.
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Operational Efficiency
With expert maintenance and proactive support, unnecessary downtime is minimized, ensuring the plant remains available for key trading periods in the Capacity Market.
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Stakeholder Confidence:
Terra Firma and Close Leasing benefited from a proven O&M partnership that expedited project completion and funding release.
