About Carron Energy

2003

Carron Energy was formed by Alex Lambie, Chief Executive, and Shezad Abedi, Advisory Board Member, in 2003 to take advantage of the then numerous distressed power assets in the UK.

Carron Energy Limited was backed by Rutland Fund Partners a UK private equity firm specialising in turnaround and recovery acquisitions.

2004

The company’s first acquisition in 2004 was Uskmouth Power Company, a 360MW coal-fired power station near Newport in South Wales. Initially Alstom Power Services provided technical support for the repair of the plant and for operations and maintenance. Michael Reynolds and Mirza Beg were invited to join the Company as non-executive directors.

Uskmouth Power makes a valuable contribution to electricity supply in the UK and its location in South Wales means it helps the National Grid with system security as few generators are located in this part of the country. The plant’s life was extended by around 25 years with its refurbishment in 1998 and it is one of the cleanest of its kind in the UK.

Uskmouth was one of the most successful turnaround exercises in the power sector in the UK. At acquisition the plant had serious technical difficulties and was in the hands of the receivers having failed to operate when it came back from its refurbishment, and upon sale it was one of the most reliable and efficient plants in the UK.

uskmouth power

2005

In July 2005 Carron Energy announced plans to build Severn Power, an 850MW gas-fired power station on the Uskmouth site, at a cost of £400 million, creating of 600 jobs during the two-year construction phase and 85 permanent jobs upon completion.

2006

In April 2006, Carron Energy, owners of Uskmouth Power and Severn Power announced that Deutsche Bank Strategic Value Partners and Trafalgar Asset Managers had purchased interests in Uskmouth and Severn Power from Rutland Partners, in a transaction worth £170 million.

In May 2006, Carron Energy submitted formal plans for Severn Power.

In September 2006, Carron Energy launched Haven Power, an electricity supply business for commercial and industrial customers.

2007

In 2007 Carron Energy took over the operations and maintenance of Uskmouth Power from Alstom.

In August 2007 Severn Power received formal planning permission. 

Also in August 2007 Carron Energy announced the acquisition of NEL Power Group, which marked the foundation of Carron Engineering and Construction (CEC), a division of Carron Energy, to provide engineering, management and construction services to the energy industry.

In October 2007, Carron Energy reflected its focus on operation and development in Wales, by re-branding as Welsh Power.  This was supported by local MPs and the Welsh Assembly.

2008

In March 2008 Welsh Power mandated The Royal Bank of Scotland as lead together with ING and Calyon to lead arrange and underwrite up to £550m debt financing in support of the development of the Severn Power project in South Wales.

Also in March 2008, Siemens was appointed as EPC (Engineering, Procurement and Construction) and O&M (Operations and Maintenance) contractor.  In August 2008, piling started on the Severn Power site.

In August 2008, Welsh Power announced plans to develop Wyre Power, an 875MW CCGT (combined-cycle gas turbine) power plant, with an investment of some £600 million.  The announcement comes as Welsh Power has secured a 35 acre tract of brown field land for the development in a deal with NPL Estates.  Formal plans are expected to be submitted in summer 2009.

In September 2008, through its specialist sub-50MW generation subsidiary, Welsh Power submitted plans for the development of Nevis Power, a 49.9 MW 100% green power plant, to Newport City Council.  The company plans to build the plant on a 10-acre brown-field site at Newport Docks, a designated area for industrial works, with an investment of more than £140 million.

Nevis Power, designed to be ultra-efficient, will use pure biomass fuels comprising a mix of primarily wood chip and energy crops. This sustainable fuel will provide a zero carbon eco footprint for the project which will be capable of supplying electricity to around 50,000  homes.

2009

In March 2009 Welsh Power disposed of Severn Power, and its engineering business Carron Engineering & Construction (CEC), in a transaction with Danish energy company, DONG Energy.

Haven Power, Welsh Power’s business to business electricity retail business was acquired by Drax Power Group Limited.

Formal plans for the development of Wyre Power are expected to be submitted in August 2009.