ScottishPower’s portfolio of pumped storage, hydro and gas-fired generation has been acquired by Drax from Iberdrola, subject to Drax shareholder approval, it was announced on Tuesday 16 October.
The £702mn acquisition consists of 440MW of pumped storage hydro, run-of-river hydro locations at Galloway and Lanark of 126MW, four Combined Cycle Gas Turbine stations with a combined capacity of 2,000MW and a biomass-from-waste facility. It is expected that the portfolio will generate EBITDA of £90-110mn, from gross profits of £155-£175mn.
Drax CEO Will Gardiner said: “As the system transitions towards renewable technologies, the demand for flexible, secure energy sources is set to grow.” ScottishPower said the sale means it is the UK’s first integrated energy company to completely switch from coal and gas generation to wind power.