Centrica to sell two power stations for £318m

British Gas parent Centrica has agreed to sell its operational Langage and South Humber Park combined cycle gas turbine power stations to EP UK Investments for £318m in cash.

The sale of the power stations, which have a combined capacity of 2.3 gigawatt, is subject to EU merger clearance and is expected to complete in the second half of the year.

The deal is consistent with Centrica's strategy to shift investment towards its customer-facing businesses and to seek opportunities in flexible peaking units, energy storage and distributed generation, while reducing its focus on large-scale central power generation.

Centrica is investing £180m in new flexible energy storage and gas-fired generation capacity.