UK: Drax Group has completed its $737 M (£548 M) acquisition of Bluefield Solar Income Fund Limited, adding solar and wind assets to its generation portfolio for the first time.
The transaction brings 0.9 GW of operating and under-construction renewable capacity, together with a gross development pipeline of 2.9 GW that could be built over the next decade.
Combined with Drax’s battery energy storage system and open-cycle gas turbine development sites, the company’s renewable and flexible generation portfolio will have a combined capacity exceeding 3 GW. This is larger than Drax Power Station’s 2.6 GW capacity for the first time.
“This is a transformational moment for Drax. By adding solar and wind to our portfolio for the first time, we are broadening the role we can play in supporting the UK’s energy security and helping to decarbonise the power system,” said Will Gardiner, CEO of Drax Group.
Gardiner added that growing electricity demand will require more renewable power alongside flexible generation and grid support to maintain system security.
Drax expects the acquisition to be supported by strong cash generation from BSIF’s existing operational assets, disciplined capital investment and attractive returns for shareholders.
The company said the deal will strengthen its ability to support the UK’s goals of improving energy security, keeping electricity affordable and accelerating decarbonisation.
Electricity demand in the country is expected to increase as AI, data centres and the electrification of transport and industry continue to develop.
Source: Drax Group
