Sale of 2,566MW Generation business to Drax Smart Generation, subsidiary of Drax Group, for £702m cash
Major strategic restructuring – first vertically integrated UK energy company to exit coal and gas generation
ScottishPower investing £5.2bn in UK - pipeline of renewables to more than double existing 2GW capacity
100% of electricity to be generated from clean wind power
£5.2bn 4-year plan to invest in renewables and smart grids to make electricity cleaner and cheaper for Britain
ScottishPower has become the first integrated energy company in the UK to shift completely from coal and gas generation to wind power, after completing the sale of its traditional generation business to Drax for £702 million.
Ignacio Galán, Chairman and Chief Executive of Iberdrola, said:
“Energy companies must be part of the solution to climate change. Iberdrola is acting now to cut carbon emissions 30% by 2020 and be carbon neutral by 2050. The sale of these generation assets is consistent with our strategy.”
Keith Anderson, Chief Executive of ScottishPower, said:
“This is a pivotal shift for ScottishPower as we realise a long-term ambition. 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.
“Every working day we are investing over £4m to deliver cleaner, smarter power for customers. From today we can focus solely on making energy generation cheaper, cutting carbon quicker, building smart grids and connecting customers to renewable electric future for transportation and heating.”
In the last decade ScottishPower has closed all of its coal plants, and with the sale of the remaining gas and hydro stations, the company now generates 100% of its electricity from wind power. Currently ScottishPower has 2,700 megawatts (MW) of wind power capacity operating or under construction in the UK, and a pipeline of future projects capable of generating more than 3,000 MW.
ScottishPower is investing £5.2 billion to 2022, with a focus on, renewable energy, enhanced grid networks and smart technology for customers.
In offshore wind alone in the UK, ScottishPower has a pipeline of 2,900 MW beyond the 714 MW under construction at East Anglia ONE. The company is closely following the proposals by the Crown Estate and Crown Estate Scotland, with ambitions to secure additional development areas in the next round of offshore wind leases throughout the UK.
The sale forms part of Iberdrola’s €3 billion global asset rotation plan, which was announced to the market in February 2018 as part of the company’s strategic outlook, setting out core business objectives to 2022. The rotation of assets is designed to complement growth plans, and support a commitment to carbon reduction. Globally Iberdrola aims to reduce emissions by 30% by 2020, and 50% by 2030 compared to 2007 and be carbon neutral by 2050.
Notes to Editors:
- The generation assets (totalling 2,566MW) included in the sale are:
- Damhead Creek (805 MW CCGT in Kent),
- Rye House (715MW CCGT in Hertfordshire)
- Shoreham (420 MW CCGT in Brighton)
- Blackburn Mill (60MW CCGT Blackburn)
- Cruachan (440 MW pumped storage in Argyll & Bute)
- Lanark (17 MW Hydro Scheme in Lanarkshire)
- Galloway (109 MW Hydro Scheme in South West Scotland)
- Daldowie Fuel Plant
- ScottishPower retains the Hatfield Gas Storage asset and Avonmouth development site.
- The transaction is conditional upon the approval by Drax’s shareholders.
Simon McMillan: 07753622257
Paul Ferguson: 0141 614 4535