Warwick Emanuel PR: Press release
Scottish and Southern Energy plc to Acquire Uskmouth Power Station
13 August 2009
Scottish and Southern Energy plc (“SSE”) has entered into an agreement with Welsh Power Group Limited to acquire Uskmouth Power Company Limited, the owner and operator of the 363MW (megawatt) Uskmouth coal-fired power station in Newport for a total cash consideration of £27m (including cash and working capital balances).
SSE is the leading generator of renewable energy in the UK, and the parent company of Welsh energy supplier SWALEC. This acquisition takes its generation portfolio past 11,000MW for the first time.
Uskmouth represents a substantial, well-located site with a good, established infrastructure and a highly skilled workforce. It currently employs over one hundred people, who will join SSE. The company intends to examine a range of options to ensure Uskmouth is an important part of its electricity generation portfolio. This will include examining opportunities to develop low carbon generation assets alongside the existing generation assets.
Uskmouth comprises three independent 121 megawatt coal-fired power generating units. This makes the power station’s generating capacity very flexible and enables its output to be more easily traded in energy markets. Over the past 10 years it has benefited from significant capital investment, including the installation of flue gas desulphurisation equipment to improve environmental performance.
The acquisition of Uskmouth is another significant step up in SSE’s growing presence in Wales and is a key part of its energy strategy plan. In May 2009, SSE acquired Abernedd Power Company from BP and announced it had applied for consent to construct and operate a new combined cycle gas turbine power station of up to 870MW on its brownfield site at Baglan Bay in South Wales. SSE has enjoyed a long presence in Wales through its highly successful energy supply brand SWALEC which supplies over one million Welsh customers with the energy they need. Additionally, SSE owns a growing metering business with many sites in south Wales and has recently completed the installation of over one hundred high tech smart meters to households in St Athan in the Vale of Glamorgan in a long term energy efficiency project. In total SSE employs almost two thousand people in south Wales and is actively involved in the local communities through a variety of grass-root sponsorships.
SSE’s Energy Supply Director Alistair Phillips-Davies said: “The acquisition of Uskmouth Power Station demonstrates SSE’s continuing commitment to invest in the Welsh economy. It is generally accepted that the UK’s coal-fired power stations still have a crucial role to play in keeping the lights on and Uskmouth has the flexibility to help meet demand for power for many years to come. We are very much committed to developing new and sustainable sources of electricity. Our target is to reduce the carbon intensity of our power generation by 50% between 2006 and 2020.
“Uskmouth has a role to play in these plans since it has the on-site benefit of an opportunity to develop low carbon generation. We intend to examine a range of options to ensure Uskmouth remains an important part of our electricity generation portfolio in the coming years. We look forward to welcoming Uskmouth to be part of our continuing successful economic growth story here in Wales.”
