Vattenfall has announced it has entered into an agreement to sell its UK electricity distribution subsidiary, Vattenfall Networks Ltd, to Eclipse Power Limited, a company also operating in the independent electricity distribution sector. This transaction aligns with the Swedish group’s strategy to refocus investments on fossil-free energy while reinforcing its financial discipline.
Vattenfall Networks Ltd operated as an Independent Distribution Network Operator (IDNO), a designation that allows the development, operation, and ownership of electricity networks as alternatives to the national grid. Since its creation in 2018, the company has experienced rapid growth, connecting homes, businesses, and renewable energy projects across the United Kingdom.
High-performing activity transferred to a structured player
The year 2024 marked a record for Vattenfall IDNO, with 20 energised projects completed – the highest annual number since the company’s inception. Simultaneously, new contracts were signed across a variety of sectors including waste management, artificial intelligence infrastructure, renewable energy, and heavy industry.
Eclipse Power Group, the parent company of Eclipse Power Networks, is a wholly owned subsidiary of Octopus Sky Fund, a fund active in managing energy infrastructure across the UK. The integration of Vattenfall Networks Ltd into its portfolio is expected to accelerate the IDNO’s growth and support the UK’s electrification efforts.
Operational continuity and development potential
The transaction is expected to close by the end of 2025. Vattenfall’s other UK operations – including onshore and offshore wind, energy trading, and district heating – remain unaffected and will continue as usual.
Annika Viklund, Senior Vice President and Head of Business Area Distribution at Vattenfall, praised the performance of the business since its launch and stressed the importance of maintaining continuity within a new group capable of supporting its future development.
Spencer Thompson, Chief Executive Officer of Eclipse Power Limited, stated that the acquisition strengthens Eclipse’s position in a competitive market while enabling the implementation of innovative solutions for industrial, commercial, and residential clients.
