Business
Acquisition of the Severn CCGT for c.£370 million
Centrica plc has acquired the Severn Combined-Cycle Gas Turbine power station for approximately £370 million, increasing its flexible generation portfolio to 4GW. The 850MW Severn plant, commissioned in 2010, is a highly efficient UK CCGT capable of providing flexible power generation and system services, with expected average capacity market payments of £35 million annually until 2030 and annual EBITDA of £30-£60 million from 2027. This acquisition, funded by existing cash resources, is expected to be EPS accretive from the first full year post-completion and aligns with Centrica's financial framework, with capital investment in 2026 projected at around £1.1 billion. Disclaimer*
About this update from Centrica Plc
[{"type":"text","content":"\n\nCentrica plc\n7 May 2026\nAcquisition of the Severn CCGT for c.£370 million\nCentrica plc (the \"Company\", \"Centrica\") today announces the completion of a significant addition to its flexible generation portfolio with the acquisition1 of the Severn Combined-Cycle Gas Turbine (\"CCGT\") power station (\"Severn\") from the Calon Energy Group for an enterprise value of approximately £370 million, increasing the Centrica Power portfolio to 4GW, including 1GW of assets currently in planning and construction.\nCommissioned in Q4 2010 with an operating capacity of 850MW2, Severn is one of the most efficient CCGTs in the UK, located in South Wales. It is one of a small number of strategic UK CCGTs capable of delivering flexible power generation at scale.\nSevern's scale and flexibility allows it to capture a diverse range of revenue streams, including the capacity market, provision of critical system services to the National Energy System Operator and the sale of power to the wholesale market. Severn is strategically positioned near growing sources of power demand, including data centre developments in South Wales, supporting long term utilisation and revenue visibility. Severn is expected to deliver average capacity market payments of £35 million p.a. until 2030, and annual EBITDA of £30 - £60 million from 2027, with EPS accretion from the first full year following completion3.\nNatural gas fired generation will continue to play a critical role in maintaining system stability through the UK's energy transition, providing firm and dispatchable power and ensuring security of supply. Severn represents an excellent fit with Centrica's current portfolio and strategy, building on Centrica Energy's existing role managing the plant's route to market, offering the scope to deliver incremental returns through optimisation, and underpinned by supportive market dynamics.\nChris O'Shea, Group Chief Executive of Centrica plc, said:\n\"We are delighted to add the Severn power station and its talented team to Centrica, which brings our total UK and Ireland electricity generation capacity in planning, construction and operation to 4GW. The importance of reliable, flexible generation to balance the system continues to increase, keeping energy supplies secure and affordable as the energy transition progresses. Severn will play an important role in...