The US company AES is to buy Drax power station from National Power for $3 billion. AES already has interests in five generating plants in the UK.
The 4000 MWe coal-fired power plant supplies power to England and Wales. The sale is a condition imposed on National Power in return for approval of the generator's purchase of Midlands Electricity.
Under the terms of the deal, an AES subsidiary will acquire the shares of a newly formed company, National Power Drax Ltd, into which the station's assets have been transferred. In addition, the company will enter into a number of contracts with National Power including one for supply of a portion of its coal requirements.
The sale of Drax will reduce National Power's UK generating capacity to around 14 000 MWe. The company's global capacity will be around 36 000 MWe.