Pennon buys three renewable power projects in £85m deal

11th Jul 2023 07:09

(Sharecast News) - Utilities firm Pennon Group announced the acquisition of three new renewable energy generation projects on Tuesday, as part of its long-term sustainable growth strategy.

The FTSE 250 company said the three projects, located in Buckinghamshire, Aberdeenshire, and Cumbria, were expected to generate more than 95 GWh of electricity annually from solar photovoltaic (PV) sources.

It said that, coupled with the recently-acquired Dunfermline project and existing internal generation, would significantly increase Pennon's self-generation capacity, bringing it to around 40%, and closer to its target of generating 50% of its electricity usage.

"The acquisition and expected build costs for the three projects total £85m," the Pennon board said in its statement.

"It is anticipated the projects will commence generation during 2025.

"The acquisition of these projects will provide attractive commercial returns, whilst also benefiting the group by increasing energy security and resilience through reducing exposure to future volatility in wholesale power markets."

Reporting by Josh White for Sharecast.com.