Vattenfall’s German arm has sold a 25 per cent stake in a Rostock hard coal fired power plant to RheinEnergie of Cologne, with effect from 1 February.
The power station on the Baltic Sea has an installed power capacity of 533 MW and also provides district heating to the Rostock municipal utility.
A statement issued by Berlin-based Vattenfall Europe jointly with RWE and RheinEnergie seen by Reuters said RheinEnergie was also acquiring the 24.6 per cent share in Rostock currently held by RWE and the remaining 50.4 per cent would remain with rival utility EnBW.
The statement put the value of Vattenfall’s part of the transaction in the “low three-digit million euro range”. Vattenfall Europe has long said while German coal and nuclear power production and retail energy remain its key markets, it needs to divest minority shareholdings.
Both Vattenfall and RWE are on savings drives after disappointing profits while smaller operators such as RheinEnergie are seeking generation assets to back their power distribution activities.
A spokeswoman for RWE said the transaction was in line with portfolio optimization efforts and placed its value also in the low three-digit million region.
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