A Singapore-based energy group has reached an agreement to buy a flexible distributed energy generator in the UK.

The £216 million deal, which involves Sembcorp Industries acquiring Solihull-based UK Power Reserve (UKPR), gives the former company an additional capacity of more than 1GW in the UK.

It currently supplies energy and services to industrial firms on Teesside, where the firm has 210MW of generating capacity at Wilton International Industrial site, comprising of combined heat and power, steam power and renewable generation.

Sembcorp is also seeking UK planning approval to develop two combined cycle gas turbine units of up to 1,700MW at Wilton.

UKPR’s flexible distributed energy generating assets across England and Wales includes projects with a capacity of 533MW in operation and a further 480MW in construction and development expected to come online by 2019.

Nomi Ahmad, Head of Sembcorp’s UK utilities business said: “UKPR and Sembcorp’s existing Teesside business will form a strong integrated energy business in the UK, combining centralised services at Wilton and multiple flexible assets across the country along with expertise across the full spectrum of UK energy markets.”