Alpiq Generation owns and operates two coal-fired power plants, Kladno and Zlín, located in Czech Republic.
Image: Alpiq will sell two Czech coal-fired power plants. Photo: courtesy of Alpiq Holding AG.
Swiss company Alpiq has signed an agreement to sell its two coal-fired power plants in the Czech Republic to Sev.en Energy Group for nearly €280m ($307.15m).
Under the terms of deal, Alpiq agreed to sell its Alpiq Generation (CZ) to Sev.en Zeta (CZ), which is a part of Sev.en Energy Group.
Alpiq Generation owns and operates two coal-fired power plants, Kladno and Zlín, located in Czech Republic.
The 516MW Kladno coal-fired power plant, which was commissioned in 2000, has been wholly-owned by the Alpiq Group since 2002.
The Zlín thermal power plant has an electrical capacity of 64MW and a thermal capacity of 376MW. It is equipped to deliver electrical energy, process heating and district heating. The power plant was acquired by Alpiq in 2005.
The power plant sale to strengthen the business model of Alpiq
The sale of two Czech coal-fired power plants forms a part of Alpiq’s effort to strengthen its business model amid an increasingly decarbonised, digitalised and decentralised energy world.
Alpiq said in a statement: “After a structured process, the Alpiq Board of Directors decided to sell the two power plants because all three criteria defined for the sale, price, transaction security and contractual conditions, are fulfilled and the transaction generates the optimal value for Alpiq.”
Subject to the usual conditions for closure, particularly the approval of the Czech competition authorities, the sale is planned to be completed during the second half of this year.
Alpiq intends to use the sale proceeds to further develop its growth areas and further optimise its balance sheet. It expects the sale to reduce the carbon emissions of Alpiq’s power plant portfolio by more than 60%.
The acquisition is part of Sev.en Energy Group’s efforts to continue developing the acquired assets and provide stable heat and electricity supply to the customers.
Sev.en Energy CEO Luboš Pavlas said: “The strategic transition between conventional energy and modern energy generating capacities is an opportunity for us.
“We want to be a part of this change in the position of those who ensure the stability and safety of supply while deploying new modern solutions. The acquisition of the Czech coal-fired power plants of Alpiq exactly fits within this strategy.”