Vattenfall is considering divestment of its heat networks and its UK independent electricity distribution network operator (IDNO) business.
The company has district heating operations in Sweden and the Netherlands, as well as the UK, providing heat to homes and businesses that together are the equivalent of over half a million households . It recently sold Heat Berlin, Vattenfall is now looking into the remainder of its district heating portfolio.
Vattenfall Heat UK has customers in London, Bristol and Midlothian in Scotland, supplying the equivalent of over 6,000 households, as well as a pipeline of further opportunities. Vattenfall IDNO, the IDNO electricity distribution business, has energised over 50 grid connections for large commercial projects.
Jenny Curtis, Managing Director of Vattenfall Heat UK, said: “District heating and electrification are fast-moving growth markets and are essential to help meet the UK’s net zero ambitions. There is a significant opportunity for investment in long term, regulated, sustainable infrastructure for the right owner.
“Our commitment to our customers, partners, and employees remains unchanged while the assessment of future ownership options takes place, and we will continue to grow both Vattenfall Heat UK and Vattenfall IDNO in line with existing business plans.”
Vattenfall said that given the large capital investments required, it had to prioritise its projects carefully.
Alexander van Ofwegen, Senior Vice President and Head of Business Area Customers & Solutions, which includes the heat operations, said, “Vattenfall continuously prioritises and weighs investment opportunities to contribute to the energy transition in the best way. There is no doubt that there is a sustainable future for district heating in all three markets and for the electricity distribution business in the UK.”
“Our assessed businesses will continue to operate as normal, working alongside our partners in all our markets. This process of assessing the most suitable ownership will take time, and we will provide a further update if there is news to share.”