Energy utility Scottish and Southern Energy (SSE), which owns Airtricity, is to acquire the electricity generation assets of Endesa Ireland, the subsidiary of the Spanish energy firm Endesa, in an acquisition and investment package totalling €488m. In addition, Taoiseach Enda Kenny, TD, will be making a “major” jobs announcement this afternoon, according to SSE.
In 2009, Endesa, the Spanish subsidiary of Italy’s Enel SpA, entered the Irish marketplace when it acquired 20pc of certain generation assets from the ESB. Its power generation plants have a total installed capacity of 1,068MW, which is about 12pc of the Irish market’s installed capacity, according to Enel.
As to the terms of the acquisition, Enel said in a statement that SSE will pay €270m, which it said would be subject to an adjustment mechanism at closing and including the value of CO2 emission rights and the company’s fuel reserves.
Enel said that Endesa Ireland’s enterprise value estimated at the closing of the acquisition, which is expected to take place in the third quarter of 2012, will amount to circa €382m.
Endesa Ireland is the owner of power generation plants in Ireland with a total installed capacity of 1,068 MW (about 12% of the Irish market’s installed capacity).
SSE’s investment includes a 460MW combined cycle gas turbine (CCGT) at Great Island in Co Wexford. Construction of the turbine has recently started and it is expected to be commissioned in 2014. The gas-fired power plant will replace the existing 240MW fuel oil unit at the site.
SSE’s takeover of Endesa in Ireland also includes 208MW of operational gas-oil plants, at Tawnaghmore in Co Mayo and at Rhode in Co Offaly.
The company is also planning a number of further development options including planning permission for a CCGT at the existing 620MW fuel-oil Tarbert plant in Co Kerry.
SSE expects to complete the purchase of Endesa Ireland later this summer.
‘Major’ jobs announcement today – SSE
This afternoon in Dublin, An Taoiseach Enda Kenny, TD, and Gregor Alexander, finance director of SSE and its lead director for Ireland, will also be making a "major announcement" related to a significant number of new jobs to be created over the next two years, SSE said this morning.
A spokesperson for the company said that the jobs will be associated with the development of the 460MW Great Island CCGT power plant in Co Wexford, new renewable energy wind farm projects across the island, and the ongoing expansion of SSE’s businesses in Ireland.
Vista of Great Island in Co Wexford where a 460MW combined cycle gas turbine plant will replace the existing 240MW fuel oil unit at the site
Speaking this morning, Alexander said that today’s announcement is part of SSE’s long-term commitment to Ireland to provide a sustainable, secure and competitive supply of energy to power its growing energy supply business, Airtricity.
"The completion of this acquisition and that of Phoenix Supply announced in May will make SSE the third largest energy company across the island with 750,000 customers. It will take SSE’s total investment into the future of Irish energy to over €1.7bn in the last five years, of which half relates to the period since Airtricity became part of SSE in 2008," he said.