Alpiq divests UK demand response business

Swiss utility Alpiq has completed the sale of UK Power aggregator Flexitricity to investment firm Quinbrook as part of its strategy to withdraw from the UK demand response management market, the utility said today.

Alpiq acquired Flexitricity in April 2014. Flexitricity's virtual power plant stands around 500MW, with assets owned by a variety of customers including NHS hospitals, universities, local authorities, district heating schemes, supermarkets and manufacturers.

The aggregator completed its first trade as a virtual lead party (VLP) in the UK's balancing market in April.

VLPs have been allowed to participate in the balancing mechanism since a rule change in December 2019. Before that, independent aggregators could only participate if they had a supply licence.

The divestment proceeds are estimated at 18mn Swiss francs ($19.7mn).

By Cristina Pinto