Engie has sold its last remaining large-scale fossil fuel power stations in the UK.
The French firm has offloaded its 75 per stake in three plants to private equity firm Energy Capital Partners for £205 million.
Japanese partner Matsui and Co also sold its 25 per cent share in the portfolio, which has a combined capacity of more than 1.8GW.
The deal covered two combined-cycle gas turbine power stations – Saltend in Yorkshire (1,197MW) and Deeside in North Wales (515MW) – as well as the Indian Queens oil-fired peaking plant in Cornwall (129MW).
As part of the transfer, 57 employees have been taken on by the new owner.
The sale is part of Engie’s group strategy to shift away from conventional thermal generation and reduce its exposure to commodify prices, whilst investing in low-carbon and flexible generation and expanding its presence in the retail sector.
“Engie has no remaining transmission-connected thermal generation assets in the UK,” the company told Utility Week in a statement. “We still have an interest in a number of very small embedded combined heat and power assets and district energy schemes.”
The company become the largest new entrant to the UK’s domestic retail market in 15 years when it launched a new household supplier in May.
It is investing £50 million in the refurbishment of its Ffestiniog pumped storage power station in North Wales, through its subsidiary First Hydro, and has acquired a 23.3 per cent stake in the 950 MW Moray East offshore wind project, which secured a strike price of £57.50/MWh in the latest Contracts for Difference auction.