Scottish Power goes with the wind as Drax Group completes takeover of portfolio

Drax Group has completed its £702m takeover of power plants from Scottish Power as the company moves towards ending its coal-based production before 2025.

The deal, which was first announced in October, sees Drax take control of the Cruachan pumped storage hydro facility and a plant which turns waste into biomass.

The plants have helped Scotland move towards a low-carbon future.

The sale means that Scottish Power’s Spanish parent company Iberdrola abandons all but its wind power generators in Britain.

“Drax Group plc is pleased to announce that it has completed the acquisition of Scottish Power’s portfolio of pumped storage, hydro and gas-fired generation,” Drax said earlier today.

In October, Drax chief executive Will Gardiner said: “It’s a critical time in the UK power sector. As the system transitions towards renewable technologies, the demand for flexible, secure energy sources is set to grow.

“We believe there is a compelling logic in our move to add further flexible sources of power to our offering, accelerating our strategic vision to deliver a lower-carbon, lower-cost energy future for the UK.

“This acquisition makes great financial and strategic sense, delivering material value to our shareholders through long-term earnings and attractive returns.”

At the time Scottish Power chief executive Keith Anderson said in a statement: “This is a pivotal shift for Scottish Power as we realise a long-term ambition. We are leaving carbon generation behind for a renewable future powered by cheaper green energy.”