Drax, a global renewable energy company, has announced the acquisition of UK flexibility energy optimizer Flexitricity.
Flexitricity offers flexible energy asset owners route-to-market (RTM) and optimization services through its proprietary AI-based control platform. This allows owners to benefit from the wholesale markets for energy, balancing and ancillary services.
According to the company’s announcement, Drax expects the Flexitricity platform to help the company develop a gigawatt-scale pipeline of battery energy storage system (BESS) infrastructure. The pipeline includes both physical assets and the ability to optimize third-party assets.
This will be achieved through RTM, floor and toll structures. As it looks now, the Drax Energy Solutions activities supplies RTM for approximately 2,000 integrated third-party renewable energy sources.
Drax Group Chief Commercial Officer, Paul Sheffield, said:
“As we continue to develop our pipeline of gigawatt-scale BESS capabilities, in addition to our other flexible generation assets, we can improve our system support, further strengthen security of supply and deliver renewable energy to our customers 24/7.”
Flexitricity provides network-scale on- and behind-the-meter solutions and demand response services for more than 900 MW of operational assets. This mainly includes BESS, gas peaks, renewables and demand response.
“The completion of the acquisition provides Drax with AI-enabled optimization capabilities that will improve the way we manage and monetize flexible generation and storage assets,” Sheffield added.
The purchase of Flexitricity was first reported in January this yearannouncing that the optimizer had been sold by Quinbrook, a global investment manager.
At the time, UK government approval was required to complete the full takeover, as well as an assessment from energy regulator Ofgem.
Under Quinbrook’s tenure, Flexitricity’s portfolio of renewable assets doubled from 540 MW to nearly 1.3 GW of distributed capacity. Quinbrook initially bought Flexitricity for £15.2 million (US$20 million) and sold it for £42 million (US$55 million).
Upon the acquisition, Sheffield concluded that the company would continue to explore investments in flexible and renewable energy, expanding the business and creating value.
