Scottish Power switches to 100% wind power with £702m asset sale

PA

Scottish Power has become the first UK energy company to switch completely to wind power after selling its last remaining gas plant to Drax Group.

Drax announced a deal on Tuesday to acquire a portfolio of Scottish Power’s assets for £702 million.

The sale means Scottish Power will now generate 100% of electricity with clean wind power.

To view this content, you'll need to update your privacy settings.
Please click here to do so.

“This is a pivotal shift for Scottish Power as we realise a long-term ambition,” said chief executive Keith Anderson.

“We are leaving carbon generation behind for a renewable future powered by cheaper green energy. We have closed coal, sold gas and built enough wind to power 1.2 million homes.”

Scottish Power reiterated its commitment to invest £5.2 billion over the next four years in renewables, advanced grid networks and smart technology.

The acquired portfolio includes pumped storage, hydro and gas-fired generation assets.

Confirmation of the deal comes as Drax seeks to diversify beyond coal ahead of the 2025 national deadline to phase out the most carbon-intensive form of power generation.

To view this content, you'll need to update your privacy settings.
Please click here to do so.

Drax chief executive Will Gardiner 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. 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 new assets are expected, based on recent power and commodity prices, to generate earnings of between £90 million and £110 million in 2019.

The acquisition is expected to be completed on December 31 2018, pending the approval of Drax’s shareholders and competition authorities.