Vattenfall creates new unit to mange electricity networks in UK

Swedish energy group Vattenfall has established a new unit to own and operate electricity networks across the UK.

The newly formed unit, Vattenfall Networks, expects to begin operations next year and will continue to help Vattenfall to expand its investment in the UK electricity market.

British energy regulator Ofgem has already granted an operating licence to Vattenfall Networks.

Vattenfall president and CEO Magnus Hall said: “This is an another important step for Vattenfall in the UK which is an interesting market where we see good opportunities to further grow with our climate smart energy solutions.

“This is in line with our overall strategy to become fossil free in a generation and supporting our customers in reducing their carbon footprint.”

Vattenfall Networks, which intends to function as an Independent Distribution Network Operator (IDNO), will be engaged in building and operating new connections to the existing electricity network in new residential, retail or industrial areas.

To be headed by Vattenfall managing director Stewart Dawson, the new unit will not have any link with Vattenfall’s existing UK sales and generation business.

Vattenfall Business Area Distribution head Annika Viklund said: “Vattenfall has extensive experience in operating electricity networks, including smart meters, and we are now also investing in micro grids and smart street lighting.

“We will use our expertise to develop the British networks business. Vattenfall will offer integrated and climate smart energy solutions to future customers in Great Britain.”

Next year, Vattenfall is planning to operate more than 1GW of wind power in the UK.