E.ON and GDF Suez Swap Europe Generation Capacity

30 July 2009 (Last Updated July 30th, 2009 18:30)

GDF Suez and E.ON have signed the final part of an agreement to swap about 1,700MW of generation capacity across Europe, E.ON announced. When the transaction is complete, Electrabel and Group GDF Suez will acquire 860MW of conventional power plants from E.ON and about 132MW hydro-electr

GDF Suez and E.ON have signed the final part of an agreement to swap about 1,700MW of generation capacity across Europe, E.ON announced.

When the transaction is complete, Electrabel and Group GDF Suez will acquire 860MW of conventional power plants from E.ON and about 132MW hydro-electrical capacity.

In addition, Electrabel will acquire electricity generated from 700MW capacity by drawing rights from nuclear power plants in Germany.

In return, E.ON will acquire the Langerlo coal and biomass-fired power plant (556MW) and the Vilvoorde gas-fired power plant (385MW) plus electricity generated out of a capacity of 770MW in the form of drawing rights from nuclear power plants with delivery points in Belgium and the Netherlands, the company said.

E.ON CEO Wulf Bernotat described the agreement as a ‘milestone’ in implementing its commitment to the European Commission to reduce generation capacity in Germany.

"For E.ON, the swap with Electrabel also marks the successful entry into Belgium’s power generation market. With a market share of 9%, we have directly become No. 3 in Belgium,” said Bernotat.