Power increase

Scottish and Southern Energy (SSE) is acquiring Uskmouth Power Company Limited, the owner and operator of a 363MW coal-fired power station near

, S

.

The agreement was made with Welsh Power Group Limited for a total cash consideration of £27m, including cash and working capital balances.

The acquisition takes SSE’s total electricity generation portfolio past 11,000MW for the first time.

Uskmouth comprises three power-generating units, each with 121MW of capacity. The power station dates from the 1960s and was substantially refurbished in 2000, including installation of flue gas desulphurisation (FGD) equipment fitted. It routinely operates on a two-shift basis to help meet shorter-term power requirements. The 100 or so employees at the company will join SSE.

SSE is considering changes at the site such as developing new lower-carbon generation assets alongside the existing generation assets.

‘It is generally accepted that the UK’s current portfolio of coal-fired power stations still have a crucial role to play in keeping the country’s lights on and Uskmouth has the flexibility to help meet demand for power over the next few years,’ said Ian Marchant, chief executive of SSE. ‘We are still focusing on our target of reducing the carbon intensity of our power generation by 50 per cent between 2006 and 2020, and Uskmouth will have a role to play in this, since it also provides an opportunity to develop a new lower-carbon generation asset on the site.

'We intend to examine a range of options, but each one will ensure Uskmouth remains an important part of our electricity generation portfolio in the coming years.’

In May 2009, SSE acquired Abernedd Power Company Limited from BP, and is awaiting the outcome of Abernedd’s application for consent to construct and operate a new combined-cycle gas turbine (CCGT) power station of up to 870MW on its brownfield site at

in

.