January 2 (Renewables Now) - Drax Group Plc (LON:DRX) said today it has completed the acquisition of the 2,566-MW UK traditional generation portfolio of Iberdrola-owned Scottish Power Ltd for GBP 702 million (USD 891m/EUR 779m) in cash.
The transaction includes Scottish Power Generation Group and its fully-owned unit SMW. In terms of generation sources, it concerns four combined cycle gas turbine (CCGT) plants, a 440-MW pumped storage hydro facility and two run-of-river hydro stations. The deal also covers the Daldowie biomass-from-waste facility.
ScottishPower, part of Spanish electric utility Iberdrola SA (BME:IBE), agreed in mid-October to sell its traditional generation assets to Drax in order to focus solely on wind power. The two parties had to renegotiate the terms of the deal and add a risk-sharing mechanism to it after the suspension of the capacity market scheme in the UK.
(GBP 1.0 = USD 1.269/EUR 1.110)