Centrica to sell two CCGT power plants in UK

• 7 years ago (2017-06-27)
• David Flin

Europe 1068 Gas 379

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UK-based Centrica has agreed to sell two of its combined cycle gas turbine (CCGT) power stations, Langage and South Humber Bank, to EP UK Investments (EPUK) for £318 million. Both gas-fired plants are operational, and they have a combined capacity of 2.3 GW.

The transaction will be in cash, subject to customary working capital and other completion adjustments. It is also subject to EU merger clearance. The deal is expected to close in the second half of this year.

With the deal, Centrica aims to meet its strategy of shifting investment towards it customer-facing businesses and seek opportunities in flexible peaking units, energy storage, and distributed generation, while reducing focus on large-scale central power generation.

In order to realise this strategy, Centrica established its Distributed Energy and Power business in 2015. Last year, Centrica secured a capacity market agreement for two fast-response gas peaking plants at Brigg and Peterborough, and a battery storage facility in Cumbria. In addition, the company is investing £180 million to develop flexible energy storage and gas-fired generation capacity as part of a 370 MW CCGT project at King’s Lynn in Norfolk, UK.