Singaporean industrial firm Sembcorp has reached an agreement to acquire UK Power Reserve (UKPR), a UK-based flexible energy generator.
The £216 million deal will see Sembcorp take control of UKPR’s operating capacity and development pipeline, and is in line with the firm’s new strategy to build an integrated energy business in the UK and grow its merchant energy capabilities.
UKPR owns and operates a portfolio of highly flexible distributed energy generation projects across 32 locations in England and Wales, with 533 MW in operation and a further 480 MW in construction and under development. The portfolio consists mainly of small-scale, fast-ramping power generation assets and rapid response batteries connected at the distribution level close to customer load.
Under the deal, Sembcorp will acquire 100 per cent of UKPR’s holding company, Repono Holdco 1 (Repono), from private equity investors Inflexion and Equistone, (which each hold a 42.5 per cent stake) and from members of UKPR management (who own a 15 per cent stake).
Sembcorp was selected as the buyer for the deal, following a competitive process initiated by UKPR’s shareholders.
“Markets, customers and stakeholders are looking for 21st century energy solutions that are more sustainable, flexible and competitive,” said Neil McGregor, Group President & CEO of Sembcorp. “Our belief is that we can achieve this by transforming our business model to provide a full spectrum of energy solutions with the right mix of capabilities and technologies.
“The acquisition of UK’s largest flexible distributed energy generator is an important step in this direction. It will transform our UK business from a centralised utilities provider on Teesside, into an integrated energy business with operations across the country.
