Centrus advises UK Power Networks Services on the acquisition of United Utilities on-site generation portfolio from SDCL Energy Efficiency Income Trust PLC

Transaction Overview

• UK Power Networks Services, the private networks business of UK Power Networks Group, acquired a portfolio of solar, wind and hydro renewable assets comprising 69 MW of renewable generation assets across 70 sites from SDCL Energy Efficiency Income Trust PLC (“SEEIT”).
• The portfolio has a long-term PPA with United Utilities for onsite consumption as well as an export PPA arrangement for excess generation.
• UK Power Networks Services has a long history of successfully managing large asset portfolios for clients with critical national infrastructure. They are active in the water and renewables sector and see this portfolio as a natural fit with their existing portfolio.

Centrus’ Role

Centrus arranged a bilateral transaction between UK Power Networks Services and SDCL, acting as financial advisor to UK Power Networks Services.

The UK Power Networks Group and Centrus have a long-standing relationship and Centrus has advised them across a range of financing transactions. Centrus’ role included:

• Identifying strategic acquisition opportunities for UK Power Networks Services and arranging a bilateral transaction with SEEIT.
• Developing a robust bespoke renewables portfolio financial model which underpinned the valuation to achieve a transaction structure and price that brought the parties together.
• Supporting commercial negotiations from drafting of NBO to financial close.
• Supporting with coordination of stakeholders and the due diligence process towards a successful close in an efficient and timely manner.

“Our vision is to deliver sustainable, reliable energy and we see this renewables portfolio as a natural fit. Our long-term objective is to grow our technology and geographic footprint in the renewables sector.

Centrus supported us in identifying the opportunity to invest in this strategic asset portfolio which supports the growth of our client led electrical services business in the North of England. 

We have been building our capacity in this sector in recent years and recently delivered one of the largest solar car ports in the UK. This acquisition has been carefully negotiated to achieve a good price and is another example of us investing in large portfolios of key renewable UK assets.” 

David Mitchell, Director – UK Power Networks Services

“We are delighted to support UK Power Networks Services on this strategic renewable energy investment and to have brought the two parties together for this bilateral transaction. This represents a significant step on our journey to expand Centrus’s position in the renewables market – connecting strategic utility clients and their liquidity to opportunities with major asset owners.”

Adam MacDonald, Managing Director – Centrus

For more information, please contact Adam MacDonald, Managing Director at Centrus.

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