Centrica announced n 7 May acquisition of the Severn Combined-Cycle Gas Turbine 2×425 MW power station in South Wales from Calon Energy Group for approximately £370 million. This is a major addition to Centrica’s flexible generation portfolio bringing the company’s total UK and Ireland electricity generation capacity to 4 GW, including 1 GW of assets currently in planning and construction. Centrica will fund the acquisition of Severn entirely from existing cash resources, on a cash-free, debt-free basis.
Commissioned in Q4 2010 with an operating capacity of 850 MW, Severn is considered to be one of the most efficient CCGTs in the UK. It is one of a small number of strategic UK CCGTs capable of delivering flexible power generation at scale. Its scale and flexibility allow it to capture a diverse range of revenue streams, including the capacity market, provision of critical system services to the National Energy System Operator and the sale of power to the wholesale market; and it is strategically positioned near growing sources of power demand, including data centre developments in South Wales.
Chris O’Shea, group chief executive of Centrica: “The importance of reliable, flexible generation to balance the system continues to increase, keeping energy supplies secure and affordable as the energy transition progresses. Severn will play an important role in supporting that journey.”
He continued: “The importance of reliable, flexible generation to balance the system continues to increase, keeping energy supplies secure and affordable as the energy transition progresses. Severn will play an important role in supporting that journey. With the delivery of replacement capacity being impacted by grid access, rising costs and supply chain constraints, alongside the closure of aging gas assets towards the end of the decade, the need for assets like Severn will increase.”
