Two French gas power plants set to go on the market

US private equity giant KKR & Co LP is mulling a potential sale of two French gas-fired power plants.
Pont-sur-Sambre gas power plant
Les Echos reports that KKR has mandated a financial firm to study options for the Toul and Pont-sur-Sambre plants, which they purchased in 2014 from Australian utility Verbund.

Les Echos quotes Antonio Haya, CEO of the company that operates the plants, as saying that “we are looking at whether the market has an appetite (for these plants).” He said an alternative option would be to raise some 100 million euros of debt for the plants, which was not possible at the time of purchase because of the plants’ difficult financial situation back then.”

The gas-fired power plants have a combined capacity of 825 MW and last year had core earnings of about EUR10m.

The plants are mainly used to cover consumption peaks in winter, benefiting from France’s new capacity market which rewards back-up power, as well as from long outages of EDF’s nuclear reactors in the past year.à‚ 

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