E.ON to sell over 2,200MW of generation capacities to Electrabel and EnBW
E.ON and Electrabel, a Belgian energy company owned by the France-based GDF Suez Group, have signed a memorandum of understanding (MoU) for a substantial swap of generation capacity. Under the MoU, E.ON will sell around 1,700MW of generating capacity and power procurement rights in Germany to Electrabel in return for the same amount of capacity and power procurement rights in Belgium. An MoU has been signed with EnBW on the sale of E.ON's stakes in the Lippendorf lignite-fired power station (446MW) and Bexbach hard coal-fired power plant (79MW). On completion of the transaction, E.ON will acquire from Electrabel, the Langerlo coal-fired power station (556MW) and the Vilvoorde gas-fired power station (385MW) plus an aggregate of approximately 770MW of power procurement rights from the Doel-1, Doel-2 and Tihange-1 nuclear power stations with delivery points in Belgium and the Netherlands. In return, Electrabel will acquire from E.ON stakes in the Farge (350MW) and Zolling (449MW) coal-fired power stations. Electrabel will also acquire 50MW combined-cycle gas turbines and a 50% stake in a 20MW biomass generating unit, both of which are located at the Zolling power station. The agreement also includes the Jansen power plant group consisting of the Reisach pump storage hydro plant (99MW), the Trausnitz hydroelectric plant (1.8MW), and the Tanzmuhle power plant comprising a pump storage unit (28MW) and a hydroelectric unit (3.3MW). In addition, Electrabel will acquire an aggregate of approximately 700MW of power procurement rights from the Krummel, Grundremmingen and Unterweser nuclear power stations. The signing of final agreements and the completion of the transactions are expected in the first half of 2009. Both transactions are subject to approval by antitrust authorities and the relevant internal bodies.