Centrica to sell two CCGT power plants to EPUK for £318m
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 £318m.
Both gas-fired plants are currently operational and have a combined capacity to produce 2.3GW of power.
The planned transaction will be done in cash, subject to customary working capital and other completion adjustments.
It is also subject to EU merger clearance and expected to close during the second half of this year.
With the deal, Centrica aims to meet its strategy of shifting investment towards its 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 to bring together expertise from across the company to provide large energy users with distributed power solutions, and combine this with its existing generation capabilities.
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, UK.
In addition, the company is investing £180m to develop new flexible energy storage and gas-fired generation capacity as part of a 370MW CCGT project at King’s Lynn in Norfolk, UK.
In a separate development, Centrica has installed four million smart meters on its customers’ homes.
The installation was performed as part of the UK Government mandate and is expected to help Centrica achieve the goal of offering smart meters to all its customers by 2020.