Drax buys energy asset optimiser Flexitricity for GBP36 million

(Alliance News) - Drax Group PLC on Wednesday said it has agreed to acquire Edinburgh-based energy asset optimiser Flexitricity Ltd from infrastructure investor Quinbrook in a GBP36 million deal, with completion expected in the first quarter of 2026.

The Selby, North Yorkshire-based electricity generator said the transaction is subject to customary closing adjustments and regulatory approvals. Drax expects the acquisition to deliver returns "significantly in excess" its weighted average cost of capital.

Founded in 2004, Flexitricity provides optimisation and route-to-market services for flexible energy assets through a proprietary controls platform. The business enables asset owners to participate in wholesale energy, balancing and ancillary services markets, offering both front-of-meter and behind-the-meter solutions.

Flexitricity currently provides demand response and optimisation services to around 900 megawatts of operational assets.

Drax said the acquisition will support its plans to develop a gigawatt-scale pipeline of battery energy storage system opportunities, combining owned physical assets with the optimisation of third-party assets through route-to-market, floor and tolling arrangements.

Drax Chief Executive Officer Will Gardiner said the acquisition is a "strong strategic fit".

"Adding Flexitricity's expertise and capability which uses AI and advanced machine learning software, delivered via their proprietary platform, supports our options for growth, particularly in our plans for a GW scale BESS portfolio," Gardiner said.

Drax shares were up 1.3% at 891.00 pence in London on Wednesday morning.

By Eva Castanedo, Alliance News reporter

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