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Drax targets Iberdrola power assets in UK

The Cruachan Dam. Author: Tom Parnell. Licence: Creative Commons, Attribution-ShareAlike 2.0 Generic (CC BY-SA 2.0)

September 24 (Renewables Now) - UK power generator Drax Group Plc (LON:DRX) is holding talks to buy a local portfolio of pumped storage, renewable hydro and gas-fired generation assets from a subsidiary of Iberdrola SA (BME:IBE).

Drax announced this in a bourse statement in a response to recent press speculation. It said that discussions are preliminary in nature and that any potential deal would be fully debt funded and subject to shareholder clearance.

The Telegraph reported over the weekend that Drax is looking to buy “a string of power units” from Iberdrola’s ScottishPower in a drive to lower its reliance on coal and biomass subsidies. According to the report though, the deal that is being discussed would include small-scale biomass assets as well.

Information on ScottishPower’s website shows that it currently operates the 440-MW Cruachan pumped storage facility, and the 109-MW Galloway and 17-MW Lanark hydroelectric plants. The company also has 2,000 MW of Combined Cycle Gas Turbine (CCGT) capacity across four sites and 1,600 MW of renewables capacity.

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Browse all articles from Ivan Shumkov

Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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