Vattenfall sells UK electricity distribution business to Eclipse Power
Investing.com -- Vattenfall has signed an agreement to sell its UK Independent Distribution Network Operator (IDNO) business to Eclipse Power Limited, a subsidiary of the Octopus Sky Fund.
The sale of Vattenfall Networks Ltd, which is expected to be completed by the end of 2025, aligns with Vattenfall’s strategy to enable fossil freedom and maintain financial discipline. This move will allow the company to optimize resources and increase investments in fossil-free energy solutions.
Established in 2018, Vattenfall’s IDNO business has developed into a competitive company that develops, owns, and operates electricity networks connecting homes, businesses, and renewable energy projects to the grid across Britain.
The IDNO business achieved a milestone in 2024 by energizing 20 projects, the highest number in a single calendar year. During the same period, it secured new contracts and partnerships with customers from various sectors including waste management, renewable energy, AI infrastructure, and heavy industry.
According to Vattenfall, the integration with Eclipse will provide greater opportunities for the IDNO business to scale up, supporting growth and accelerating electrification across the UK. Customers, suppliers, and employees can expect continuity in ongoing operations.
Annika Viklund, Senior Vice President and Head of Business Area Distribution at Vattenfall, said: "Today’s agreement ensures the Independent Distribution Network Operator business can continue to grow and play an important role in further electrification. Vattenfall’s IDNO business has performed extremely well since entering the UK market, which is a testament to the focus and dedication of our colleagues. I want to thank them for all they’ve done and wish them the best as they carry on their good work."
Spencer Thompson, Chief Executive of Eclipse Power Limited, noted that the acquisition strengthens Eclipse Power’s position in a competitive market and creates opportunities for further innovation in the industry.
Vattenfall’s other UK operations, including onshore and offshore wind, energy trading, and district heating, will continue to operate as normal.
