Centrica Sells Two Power Stations

UK vertically-integrated energy company Centrica has agreed to sell its operational Langage and South Humber Bank combined-cycle gas turbine (CCGT) power stations, with a combined capacity of 2.3 GW, to EP UK Investments for £318mn ($401mn) in cash, it said June 21. The deal is subject to customary working capital and other completion adjustments; and to European Union regulatory approval.

EPUK’s parent company, EPH, is Europe’s seventh largest power generator and owns the Eggborough and Lynemouth Power stations in the UK. It also owns a string of coal-fired plant in central and eastern Europe and the Eustream pipeline, the EU's largest transit system.

Centrica said the sale was consistent with its strategy to shift investment towards its customer-facing businesses and to seek opportunities in flexible peaking units, electricity storage and distributed generation.  

In December 2016 Centrica was awarded capacity market agreements for two fast-response gas peaking plants at Brigg and Peterborough, which use reciprocating motors and so are less efficient; and a battery storage facility in Cumbria. Also including the 370-MW CCGT project at King’s Lynn A, Centrica is investing £180mn in new flexible energy storage and gas-fired generation capacity.

In May 2016 Centrica bought the international distributed energy specialist Ener-g Cogen; and also Danish energy supply and asset management firm Neas.

William Powell