Sweden-headed energy utility major Vattenfall AB has announced that it signed an agreement to divest its Independent Distribution Network Operator (IDNO) business in the UK, Vattenfall Networks Ltd, to Eclipse Power Ltd, owner of another IDNO business - Eclipse Power Networks.
Eclipse Power Group is a wholly owned subsidiary of the Octopus Sky Fund, which owns and manages infrastructure across the UK.
The acquisition of Vattenfall’s UK electricity distribution business strengthens Eclipse Power’s position in a competitive market and creates opportunities for further innovation in the industry. Vattenfall is a strong cultural and technical fit for Eclipse Power and brings together highly skilled teams with shared values and a commitment to delivering long-term value to clients, partners, and employees. The acquisition enhances Eclipse Power’s ability to serve customers with high-quality network solutions across various sectors in the UK energy market, whilst creating opportunities for growth and people development, said Spencer Thompson, Chief Executive of Eclipse Power.
Optimise resources
The sale supports Vattenfall’s purpose to enable fossil freedom and its commitment to financial discipline, enabling the company to optimise resources and further invest in fossil-free energy solutions.
Since its establishment in 2018, Vattenfall IDNO has grown into a strong and competitive company, developing, owning, and operating electricity networks across Britain that connect homes, businesses, and renewable energy projects to the grid.
In 2024, a total of 20 projects were energised – marking the highest number achieved within a single calendar year.
In addition, Vattenfall IDNO also signed several new contracts and entered into cooperation with customers from the waste management, renewable energy, AI infrastructure, and heavy industry sectors during the last year.
This transaction represents a valuable opportunity for Vattenfall and the IDNO business.
While customers, suppliers, and employees can expect continuity and confidence in ongoing operations, the integration with Eclipse will provide increased opportunities for the IDNO business to scale up, supporting growth and accelerating electrification across the UK.
Today’s agreement ensures the Independent Distribution Network Operator business can continue to grow and play an important role in further electrification. Vattenfall’s IDNO business has performed extremely well since entering the UK market, which is a testament to the focus and dedication of our colleagues. I want to thank them for all they’ve done and wish them the best as they carry on their good work, said Annika Viklund, SVP and Head of Business Area Distribution at Vattenfall.
The transaction, the value of which has not been disclosed, is expected to be concluded by the end of 2025. Vattenfall’s other UK operations – including onshore and offshore wind, energy trading, and district heating – continue as normal.
