01 Apr 2008

Siemens to Build a £450 Million New Power Station in South Wales for Severn Power

United Kingdom, 2008-Apr-01

Severn Power Limited has signed contracts with Siemens for the design, engineering, construction, commissioning, testing and completion, operation and management of the 850MW Severn Power Combined Cycle gas turbine plant at Uskmouth near Newport in South Wales. This follows the award of planning permission for the project by DBERR (The Department for Business, Enterprise and Regulatory Reform) in August 2007, and the announcement on 4 March 2008 that Welsh Power Group Limited has mandated three banks, Calyon, ING and The Royal Bank of Scotland, to lead arrange and underwrite up to £550m debt financing in support of the Severn Power development.


Alex Lambie, Chief Executive of Welsh Power, owners of Severn Power said: “We are delighted to have concluded these critical negotiations. We are looking forward to commencing construction, and are confident that Siemens’ expertise will bring Severn Power on line on schedule in 2010.


“There have been concerns raised that the UK will be unable to build new plant, to meet the generation shortfall resulting from older plant retiring, due to the global demand for turbines. The Severn Power project will play an important role in delivering efficient and competitive energy for GB customers in the coming years.


“Severn Power will create more than 650 skilled jobs, provide vital electricity generation for South Wales, and contribute to the Welsh Assembly’s aim of energy self-sufficiency for Wales.”


Jens-Peter Saul, managing Director of Siemens Power Generation said: We are delighted and proud to be Severn Powers selected partner for the construction, operation and maintenance of the power station. With this contract, Siemens has underlined its position as a market leader in the UK power station market and will for the first time in our UK history, also operate a power station in the UK.”


Site works have already commenced, to prepare the site for building and to create environmental landscaping features that are an integral part of the development. Severn Power is due to start commercial operation in 2010 following a 30 month construction period and four months of commissioning.

About Severn Power Limited:
Severn Power Limited is a wholly owned subsidiary of Welsh Power, a private power company who also own Uskmouth Power (a 360MW coal-fired station). Welsh Power is a private power company, building a multi-asset European energy business though a buy-and-build strategy.

Contact:

Anne Keogh, Siemens plc: Tel: 01276 696312, email: anne.keogh@siemens.com
Kerry Milton, Siemens plc : Tel : 01276 696338, email : kerry.milton@siemens.com

Laura Matthews, PR Advisor, Welsh Power, Tel: 01633 292700


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