23 December 2019

Centrica to sell King's Lynn gas fired power station

Centrica to sell King's Lynn gas fired power station

Centrica plc has agreed to sell its 382 MW King's Lynn combined cycle gas turbine (CCGT) power station to RWE Generation for £105 million, based on a valuation date of 31 December 2019. The transaction is expected to complete in the first quarter of 2020.

The transaction forms part of the non-core asset disposal programme announced in February this year. It is also consistent with Centrica's strategy to reposition towards the customer, and as part of this from central to distributed generation, as the company focuses on becoming a leading international Energy Services and Solutions provider.

The new King's Lynn CCGT was commissioned on 18 November 2019 following a major replant by Siemens, including the installation of a new gas turbine. The power station is designed for maximum efficiency and flexibility, supporting the transition to a low carbon energy system which is increasingly reliant on intermittent renewables.

The power station has a 15-year Capacity Market agreement which starts in October 2020 and is capable of producing enough power to meet the needs of 400,000 households, almost all the homes in Norfolk.