29th Sep 2008 08:00
29 September 2008 Centrica plc agrees to acquire Solar Technologies Centrica plc, the owner of British Gas, today announced that it has acquiredSolar Technologies Group Limited ("Solar Technologies") for £2.8 million in cash(including the repayment of debt). The acquisition will enable British Gas toinstall solar photovoltaic (PV) technology(1) in the UK and will build on itsaim of becoming the leading provider of low carbon energy services. Solar Technologies is one of the UK's leading installers of integrated solar PVand renewable energy technology solutions. It is also one of British Gas'technology contractors for Phase 2 of the Low Carbon Buildings Programme (LCBP)and is responsible for many of the major PV installations in the UK, includinglandmark installations such as London's City Hall. The acquisition of Solar Technologies is in line with British Gas's strategy ofinvesting in low-carbon technologies. The company aims to build a portfolio oftechnologies that will enable it to meet customer, property and existing systemneeds with solutions that enable the generation of cheap, reliable andlow-carbon energy. In January this year British Gas announced an equity investment in, anddevelopment and distribution agreement with, Ceres Power Holdings plc to developcombined heat and power systems for residential properties based on solid oxidefuel cell technology. More recently, it signed a Memorandum of Understandingwith Disenco Energy plc that will see both companies collaborating in thedevelopment of micro-combined heat and power appliances for larger homes andcommercial properties. The government aims to have reduced UK domestic CO(2) emissions by 26 to 32% by2020 and a binding target of 15% of all energy coming from renewable sources bythe same year and these smaller scale renewable technologies have a significantrole to play in helping to achieve these aims. Through its Services business,British Gas has unparalleled national installation and servicing capabilities,which will enable it to maximise the opportunity that low carbon technologiespresent. Recent changes in building planning approval systems and building regulationswill further encourage the use of renewable energy in new buildings across thecountry. Gearoid Lane, Managing Director of British Gas New Energy, said: "Thisacquisition is an important step in British Gas putting in place a range ofrenewable and low carbon energy technologies for our residential, business andpublic sector customers. These technologies will become increasingly importantas the UK implements policies to meet its stretching renewable energy and carbonemissions targets. And with British Gas's energy experts supporting millions ofBritain's homes and business, we are uniquely positioned to deliver." The European Photovoltaic Industry Association believes that photovoltaic energycould provide 12 per cent of European electricity demand by 2020. Early in 2007, the Department for Trade and Industry set up the LCBP Phase 2,which allocated £48 million to be spent on five renewable energy technologies by2009. The technologies attract a 50 per cent capital cost grant, the mainrecipients of which are public sector organisations, with a cap at 50kW systemsper building and a total of £1 million grant per organisation. British Gas is aframework supplier for the programme. - ends - Notes to editors Centrica plc is making the acquisition through its wholly-owned subsidiary, GBGas Holdings Limited. (1 )Solar photovoltaic technology describes the conversion of sunlight intoelectrical energy through thin layers of semi-conductor material. The output isdetermined by the brightness of natural light available and by the area andefficiency of panels. EnquiriesInvestor relations: 01753 494900Media relations: 0845 072 8001 Copyright Business Wire 2008Related Shares:
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