JLL advises Mersey Reactive Power Limited on the sale of their 200MVAr shunt reactor in UK

JLL’s Energy and Infrastructure Advisory team acted as exclusive sell-side M&A advisor to Mersey Reactive Power Limited, a joint-partnership between PeakGen Net Zero Energy Development Limited and Eden Rock Group Limited on the sale of their 200MVAr shunt reactor. The asset benefits from a High Voltage pathfinder contract, a long-term index-linked contract with National Grid ESO, to stabilise regional voltage through the management of reactive power absorption.

Following a competitive process, the opportunity was awarded to the Downing Renewables & Infrastructure Trust (DORE). This represents one of the first shunt reactor transactions in Europe and is the only non-TSO operator to hold a transmission license and is the first time Ofgem has approved the transfer of this licence between two parties. The asset supports the UK’s energy transition towards net zero by providing essential grid services including voltage management and grid stability, which are critical to the future success of decarbonisation.

Ian Graves, Executive of Mersey Reactive Power Limited, said: “This transaction highlights the relevance of stability services as a tangible investment case in and of itself within the UK market. As well as paving the way for a more liquid sector going forward as the CATO model of private transmission network operators grows in GB.” 

Max Stirling, Director, Energy & Infrastructure Advisory, EMEA, JLL, added: “We are thrilled to have closed this first-of-kind transaction on behalf of Mersey Reactive Power Limited. This deal highlights the opportunity within the UK market for private sector participants to support a critical function of National Grid ESO’s stability services, and contribute to accelerating the UK’s energy transition, through the high voltage pathfinder auction.”