Centrica said on 7 May that it had completed the purchase of the 850MW Severn combined-cycle gas turbine power station in South Wales from Calon Energy Group for an enterprise value of approximately £370m.
Why Centrica plc is buying Severn CCGT power station (Severn Power Limited)
Centrica said gas-fired generation will remain critical to system stability through the energy transition, and that the plant fits its existing role managing Severn's route to market. It pointed to revenue from the capacity market, system services for the National Energy System Operator and wholesale power sales, and to nearby data-centre demand.
“Severn is a high-quality asset that strengthens our ability to deliver the dependable power both our customers and our host countries rely upon.”
Deal terms and financing
The deal was struck on a cash-free, debt-free basis and funded entirely from existing cash. Centrica expects earnings per share accretion from the first full year after completion, with a small net loss in 2026 because of transaction costs and lower summer revenues. Its 2026 capital investment is now expected to be about £1.1bn.
Regulatory approvals and timing
Centrica announced the acquisition as completed on signing.
Market context
Severn was commissioned in the fourth quarter of 2010 and Centrica describes it as one of the most efficient gas plants in the UK. The deal takes Centrica's UK and Ireland generation capacity in operation, construction and planning to 4GW.
