Centrica has this morning announced it has completed a £370million deal to buy the Severn Combined-Cycle Gas Turbine power station from the Calon Energy Group.
The acquisition marks a significant addition to Centrica's power portfolio, bringing it to 4GW, including 1GW of assets currently in planning and construction.
With an operating capacity of 850MW2, Severn is one of the most efficient CCGTs in the UK and is one of a small number of strategic UK CCGTs capable of delivering flexible power generation at scale.
Severn's scale and flexibility allows it to capture a diverse range of revenue streams, including the capacity market, provision of critical system services to the National Energy System Operator and the sale of power to the wholesale market.
Severn is expected to deliver average capacity market payments of £35million per annum until 2030, and annual EBITDA of £30million - £60million from 2027.
Chris O'Shea, Group Chief Executive of Centrica plc, said: "We are delighted to add the Severn power station and its talented team to Centrica, which brings our total UK and Ireland electricity generation capacity in planning, construction and operation to 4GW.
"The importance of reliable, flexible generation to balance the system continues to increase, keeping energy supplies secure and affordable as the energy transition progresses.
"Severn will play an important role in supporting that journey. With the delivery of replacement capacity being impacted by grid access, rising costs and supply chain constraints, alongside the closure of aging gas assets towards the end of the decade, the need for assets like Severn will increase.
"Severn is a high‑quality asset that strengthens our ability to deliver the dependable power both our customers and our host countries rely upon.
"With our substantial experience operating critical energy infrastructure, we're confident we can maximise long‑term value - supporting energy security, driving attractive returns, and creating real benefits for households, businesses and our shareholders."
Centrica will fund the acquisition of Severn entirely from existing cash resources, on a cash-free, debt-free basis.
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