Alpiq to Sell Budapest CCGT

As part of its strategy of divesting non-core assets, Swiss utility Alpiq said September 22 it plans to sell its Csepel II gas-fired 403-megawatt combined cycle power plant in Budapest to Hungarian state power group MVM.

It has agreed terms with MVM and aims to complete the sale by end-2016, subject to regulatory approvals. Nearly 7% of Hungary’s annual power demand is produced by Csepel II, built in 2000, which also generates heat for district heating and industrial processes. Alpiq acquired the plant in 2002.

An overview of the Csepel II CCGT (Photo credit: Alpiq)

Alpiq also said that, with the opening of up to 49% of its hydropower portfolio to new investors, it plans to reduce its dependency on wholesale prices and decrease its net debt. In addition, it said other opportunities to divest other non-strategic interests will be assessed and implemented.

It has been divesting smaller interests throughout 2016, and in late 2015 sold the 408 MW Bayet CCGT in France to local firm Direct Energie for €45mn.

France's EDF and a consortium of local power companies in western Switzerland, called Eos Holding, jointly hold a majority interest in Alpiq. 

Mark Smedley