Centrica Buys 850-MW Severn Gas Power Plant for £370 Million

Centrica has acquired the 850-MW Severn gas-fired power station in Wales for £370 million, expanding its flexible generation capacity amid rising power demand.

(P&GJ) — Centrica has acquired the 850-MW Severn combined-cycle gas turbine (CCGT) power station in South Wales from Calon Energy Group for approximately £370 million ($490 million), expanding its gas-fired generation portfolio in the UK and Ireland.

The Severn facility, commissioned in 2010, is one of the UK’s larger and more efficient gas-fired power stations and is positioned near growing electricity demand centers, including planned data center developments in South Wales.

The acquisition increases Centrica’s total electricity generation capacity across the UK and Ireland to about 4 GW, including projects currently under development and construction.

Centrica said Severn is expected to provide long-term revenue through the UK capacity market, wholesale electricity sales and grid balancing services.

CEO Chris O’Shea said reliable and flexible gas-fired generation will continue playing a key role in maintaining grid stability during the energy transition, particularly as older assets retire and power demand rises.

The company said the acquisition supports its broader infrastructure investment strategy as demand for dispatchable generation and energy reliability continues increasing.

Centrica plans to fund the transaction entirely through existing cash resources.