Centrica have today announced the acquisition of the Severn Combined-Cycle Gas Turbine (CCGT) power station in South Wales from Calon Energy Group for approximately £370 million. This is a major addition to Centrica’s flexible generation portfolio bringing the company’s total UK and Ireland electricity generation capacity to 4GW, including 1GW of assets currently in planning and construction – enough to power up to 6 million homes.
Commissioned in Q4 2010 with an operating capacity of 850MW, Severn is one of the most efficient CCGTs in the UK, located in South Wales. It is one of a small number of strategic UK CCGTs capable of delivering flexible power generation at scale.
Severn’s scale and flexibility allows it to capture a diverse range of revenue streams, including the capacity market, provision of critical system services to the National Energy System Operator and the sale of power to the wholesale market. Severn is strategically positioned near growing sources of power demand, including data centre developments in South Wales, supporting long term utilisation and revenue visibility. Severn is expected to deliver average capacity market payments of £35 million p.a. until 2030, and annual EBITDA of £30 – £60 million from 2027, with EPS accretion from the first full year following completion.
Chris O’Shea, Group Chief Executive of Centrica plc, said, “The importance of reliable, flexible generation to balance the system continues to increase, keeping energy supplies secure and affordable as the energy transition progresses. Severn will play an important role in supporting that journey. With the delivery of replacement capacity being impacted by grid access, rising costs and supply chain constraints, alongside the closure of aging gas assets towards the end of the decade, the need for assets like Severn will increase.”
The acquisition of Severn is aligned to Centrica’s rigorous financial framework and capital allocation policy, with a further £0.4 billion now committed since our 2025 preliminary results announcement to the Company’s investment programme. Accordingly, capital investment in 2026 is expected to be around £1.1 billion.
Centrica will fund the acquisition of Severn entirely from existing cash resources, on a cash-free, debt-free basis.
