(Bloomberg) -- National Grid Plc agreed to sell its Electricity System Operator to the UK for an enterprise value of £630 million ($828 million), according to a statement from the government.
The deal is part of Britain’s efforts to achieve its clean energy goals as it links new generation to the grid. The ESO helps balance the power network across the UK.
Electricity and gas network planning are “to be brought under one roof, as the new independent National Energy System Operator launches to achieve the clean energy transition,” the Department for Energy Security and Net Zero said in the statement.
The new organization is set to begin work Oct. 1. It will chaired by former E.ON UK Chief Executive Officer Paul Golby, with Fintan Slye, currently the director of the ESO, serving as its CEO.
Britain is working at pace to reach its target of net zero on the power grid by the end of the decade, ramping up the roll-out of renewables. Grid expansion is also key to the UK’s energy transition, allowing wind power to be transported to demand centers.
The National Energy System Operator will help with planning for electricity and gas networks, in an effort to streamline the process and instill more investor confidence. The government has commissioned it to provide advice due later this year on what is needed to reach the 2030 target.
The transaction value is a “fair market price,” Citigroup Inc. analyst Jenny Ping said in a note.
©2024 Bloomberg L.P.
