Drax has agreed to acquire Flexitricity, an Edinburgh-based optimiser of flexible energy assets, from energy transition investor Quinbrook in a deal valuing the business at £36 million.
The FTSE-listed group, which produces sustainable biomass, said the acquisition is expected to complete in Q1 2026, but will remain conditional on regulatory approvals and processes.
Flexitricity, founded in 2004, helps owners of flexible energy assets optimise and sell their power into wholesale, balancing and ancillary markets.
It uses its own controls platform and works with both grid-scale and behind-the-meter assets, including battery energy storage systems (BESS), gas peakers, renewables and demand-side response.
The business currently manages more than 900MW of operational assets and employs around 85 people, who are expected to join the group once the deal completes.
The deal will expand Drax’s FlexGen business and support its ambition to develop a gigawatt-scale pipeline of BESS opportunities, combining ownership of physical assets with the ability to optimise third-party infrastructure.
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The company already provides a route to market for around 2,000 embedded third-party renewable assets, representing roughly 800MW of capacity through its Drax Energy Solutions unit.
It expects the acquisition to generate returns “significantly in excess” of its weighted average cost of capital.
The Yorkshire-headquartered energy giant currently has a market cap of over £2 billion.
Its share price has risen by just under 43% in the past 12 months to 888.5p.
“We are pleased to announce the acquisition of Flexitricity,” said Drax Group CEO, Will Gardiner.
“We are ambitious about growing and developing our FlexGen business and Flexitricity’s technology and team are a strong strategic fit for us.
“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 as a part of our FlexGen business, while continuing to provide energy security to the UK power system and delivering new energy services for our customers.
“I would also like to welcome Flexitricity’s employees to the group and its customers who we look forward to working with and continuing to serve following completion of the acquisition.”
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