Sembcorp is to acquire distributed power specialist UK Power Reserve (UKPR) for £216 million.
UKPR’s generating and storage fleet is spread across 32 locations in England and Wales. It has 533MW in operation with a further 480MW in construction and development expected to come online by 2019. They include gas and diesel power generation units and 120MW of battery storage.
Sembcorp UK has 210MW of generation capacity at Wilton International industrial site in Teesside to service energy-intensive industrial and commercial customers. It is also seeking planning approval to develop two CCGT units of up to 1,700MW at Wilton. That project is under examination at National Infrastructure Planning.
Sembcorp said the acquisition would give it an important foothold in distributed energy generation – the fastest growing sector in the UK power market – and also strengthen its UK merchant energy capabilities. Nomi Ahmad, head of Sembcorp’s UK utilities business, said the acquisition: “deepens our presence in the UK considerably and provides major opportunities for further expansion. ”
Sam Wither, UKPR’s current chief commercial officer, who is taking over from Emrich as head of UKPR, said: “Moving ahead, UKPR looks forward to growing as part of the Sembcorp Group’s integrated energy business in the UK. We will also look to continue the close working relationships we have built with our existing commercial partners over the years.”