Material changes to the UK peak power and capacity markets sector has resulted in 3 major reserve power facilities becoming insolvent.
As a result, 44MW of standby power generator assets are available for sale either in-situ, to take advantage of STOR, FFR and future capacity markets, or piecemeal for removal.
Dan Hurd of Ernst Young, the Administrator commented, “In November 2018 the European Court of Justice ruled payments made under the UK’s Capacity Market as illegal state aid. This has created uncertainly for the energy sector and has meant that the UK will not be running new capacity market auctions or making payments to generators. This had a material impact on the revenues and cashflows of the companies and therefore, due to the lack of liquidity the directors sought the appointment of administrators”.
The Joint Administrators have appointed Hickman Shearer as sole advisors to sell the assets.
Tim Chapman of Hickman Shearer commented, “we have deep experience and expertise in this sector and are now engaged in marketing the assets for sale. This represents an amazing opportunity for operators to acquire 44MW of stand-by power either as a whole or as 2 MW units.”
“It’s rare to find (25) identical Himoinsa MTU powered 2200kVA diesel generator sets, that were only installed in 2017 and with less than 260 hours, for sale. We have already received local and global interest and expect to negotiate sales shortly.”
About Hickman
Shearer Hickman Shearer is a leading independent capital asset valuation, management and used equipment sales company. Established in 1993, we are based in the United Kingdom with network offices across Europe, North America, Africa and Asia.
We provide expertise and professional advice in relation to plant, machinery and equipment, inventory and the built environment. Our clients include global and mid-sized corporations, the public sector, insurers, lenders, investors and their advisors, who harness our deep knowledge and experience to respond to, and resolve, asset related issues.
Our wide ranging skills and expertise support asset rich organisations throughout the life of the business and the asset.