Drax to buy Scottish Power gas and hydro assets for £0.7 billion
16 Oct 2018
Drax Group is awaiting shareholder approval for its proposed £0.7 billion-plus cash acquisition of Scottish Power’s extensive portfolio of pumped storage, hydro and gas-fired generation assets.
The portfolio consists of Cruachan pumped storage hydro (440 MW), run-of-river hydro locations at Galloway and Lanark (126 MW), four CCGT(2) stations: Damhead Creek (805 MW), Rye House (715 MW), Shoreham (420 MW) and Blackburn Mill (60MW), and a biomass-from-waste facility (Daldowie).
Chief executive officer of Drax Group, Will Gardiner commented on the announcement in a statement.
He said: “I am excited by the opportunity to acquire this unique and complementary portfolio of flexible, low-carbon and renewable generation assets. It’s a critical time in the UK power sector.
There is a compelling logic in our move to add further flexible sources of power, accelerating our strategic vision [of] a lower-carbon, lower-cost energy future
Will Gardiner, CEO, Drax Group
"As the system transitions towards renewable technologies, the demand for flexible, secure energy sources is set to grow. We believe there is a compelling logic in our move to add further flexible sources of power to our offering, accelerating our strategic vision to deliver a lower-carbon, lower-cost energy future for the UK.”
The sale by Scottish Power’s parent company Ibedrola marks a wholesale move to renewables by the utility operator but also marks its move from hydro power to focus on wind power.
