UK’s largest independent distributed energy supplier sold for £216m
Sembcorp Industries is buying the business and assets of Solihull-based UK Power Reserve (UKPR), the UK’s largest flexible distributed energy generator.
UKPR’s distributed energy generating assets are spread across 32 locations in England and Wales and comprise 533 MW in operation with a further 480 MW in construction and development expected to come online by 2019. The power is managed from an in-house designed control centre in Solihull that acts as a virtual power station and the company has 75 staff.
The deal gives Sembcorp an additional capacity of over 1GW in the UK, where it currently supplies 210MW of power to industrial firms on Teesside. The £12bn company supplies 12GW of power around the world, including thermal power plants, renewable wind and solar power assets, as well as biomass and energy-from-waste facilities. It is also a leader in offshore and marine engineering.
UKPR’s assets include 120MW of rapid response battery storage, one of the biggest portfolios in Europe, and the company has over 800MW of thermal energy from 40 sources, mostly from Cummings Power Generation. The company was set up in 2010 with backing from finance houses Inflexion and Equistone Partners and founder Tim Emrich is stepping down as CEO.
“This is an exciting new chapter for UKPR – Sembcorp’s investment underlines not only the value of the UK’s distributed energy market, but also the strong position that UKPR has built up,” he said. “The next phase of development is already well underway and integration with Sembcorp opens up huge possibilities for the future.”
The deal gives Sembcorp an important foothold in distributed energy generation – the fastest growing sector in the UK power market as it seeks planning approval to develop two combined cycle gas turbine units of up to 1.7GW at Wilton in Teeside.
“UKPR and Sembcorp’s existing Teesside business will form a strong integrated energy business in the UK, combining centralised services at Wilton with multiple flexible assets across the country along with expertise across the full spectrum of UK energy markets,” said Nomi Ahmad, Head of Sembcorp’s UK utilities business. “UKPR complements our existing operations on Teesside superbly and set us firmly on track for further growth in the UK.”
Sam Wither, UKPR’s current Chief Commercial Officer, is taking over as head of UKPR. “Sembcorp’s coming on board as UKPR’s key shareholder is a vote of confidence in our company and team,” he said. “Moving ahead, UKPR looks forward to growing as part of the Sembcorp Group’s integrated energy business in the UK. We will also look to continue the close working relationships we have built with our existing commercial partners over the years.”