For Alkane, the acquisition offers an opportunity to take advantage of National Grid’s Short Term Operating Reserve (STOR) market.
“The acquisition will add 49MW of power response generating capacity to Alkane’s portfolio of generating assets, placing the company in a strong position in the market where participants are paid premium rates during the year when called upon by the National Grid to meet temporary supply shortages,” said a statement from M&A specialists, Wragge Lawrence Graham & Co, who secured the deal.
Alkane chief executive Neil O’Brien, added: “These three companies are important additions to our nine existing power response sites offering attractive rates of return and with some significant long term contracted revenues.”
Carron Energy, part of the Welsh Power Group, sold its 14MW Darent Power, 25MW Leven Power and Rhymney Power companies as part of a restructuring which will see it move more towards the development and running of ‘new build’ assets, Carron Energy’s chairman Alex Lambie said.