Centrica buys energy management firm for £170m

Centrica is to buy a Danish energy management company for DKK1.6 billion (£170m). The energy giant said Neas Energy’s business model complements its current marketing and trading activities, “providing expertise […]

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By Priyanka Shrestha

Centrica is to buy a Danish energy management company for DKK1.6 billion (£170m).

The energy giant said Neas Energy’s business model complements its current marketing and trading activities, “providing expertise in short term power trading and asset management in North West Europe”.

Centrica’s trading arm currently focuses on longer term gas and power trading in the UK and Europe.

Neas provides its services in six European countries, with customers owning a total of 2,500 individual decentralised assets including wind farms, solar plants and combined heat and power plants.

They have an installed total capacity of around 8,600MW.

In addition, the Danish firm provides risk and supply management and energy use optimisation for wholesale electricity customers and smaller suppliers that do not have trading capabilities of their own.

Centrica CEO Iain Conn said: “Our new strategy recognises that the energy landscape is rapidly changing, with a trend away from large centralised power generation to decentralised technologies – much of it intermittent renewable generation.

“Neas has developed a business model and capabilities that are able to capitalise on this trend and combined with Centrica’s existing strengths, this acquisition will allow us to accelerate our energy marketing and trading growth strategy and serve renewable and distributed energy customers at a wholesale level across Europe.”

Earlier this week Centrica confirmed it will cut 3,000 jobs this year in a bid to reduce costs.