RWE Generation has acquired a 382 megawatt gas-fired combined cycle power plant in King’s Lynn in Norfolk from Centrica.
The power plant will receive reliable, stable capacity payments until 2035 on the basis of a 15-years contract in the capacity market, which starts in October 2020.
Roger Miesen, CEO of RWE Generation, commented on the news: “The acquisition of King’s Lynn power station strengthens our position as one of the largest operators of gas-fired power plants in Europe.
“We also reinforce our engagement in the attractive UK generation market.
“As a key enabler of security of supply, gas plays a key role in the transformation to a low carbon energy system.”
An extensive technical update on the plant was completed in November this year, where the plant has been equipped with a new gas turbine.
The generator, steam turbine and other components have been comprehensively overhauled.
The acquisition of the plant, which has an efficiency of 57 percent, includes RWE taking on more than 30 employees on the site.
The transaction is expected to be completed in the first quarter of 2020, with the price of £105 Million.
Tom Glover, Country Chair for RWE in the UK, added: “We are proud that we were able to succeed in acquiring this asset and the expert staff. King’s Lynn, as a highly flexible and efficient combined cycle power plant, fits perfectly with our existing portfolio of gas and renewable power generation.”
With the acquisition of King’s Lynn the existing RWE gas portfolio in the UK reaches a total of 7.2 gigawatts.
This makes RWE Generation one of the largest operators of gas-fired power stations in the UK.