The combined value of the deal is £36 million, or about $48.2 million. The deal is expected to close in the first quarter of 2026, subject to regulatory approvals. Scotland-based Flexitricity, the UK’s first demand aggregator, has been actively managing over 900 megawatts (MW) of operational assets. These assets can be gas peakers, battery energy storage systems (BESS), demand-side response and renewable energy sources.
Founded in 2004, Flexitricity has become a recognised leader in optimising distributed energy resources and providing trusted market access. The firm currently has three additional, siting-ready BESS sites across Scotland and northern England. Together, they hold an astounding combined capacity of 260 MW. This acquisition is a key part of Drax’s strategy to build on its FlexGen business and grow its global leadership in providing flexible, innovative energy solutions.
Drax Group CEO Will Gardiner expressed confidence in the acquisition, stating, “We are pleased to announce the acquisition of Flexitricity. We are ambitious about growing and developing our FlexGen business and Flexitricity’s technology and team are a strong strategic fit for us.”
The integration of Flexitricity’s roughly 85 employees into Drax is expected to enhance the company’s capabilities in managing flexible energy assets. Flexitricity operates the most advanced artificial intelligence and machine learning software on its proprietary platform. Gardiner explained that this technology has been a major factor in Drax’s recent growth strategy.
“Adding Flexitricity’s expertise and capability, which uses AI and advanced machine learning software, delivered via their proprietary platform, supports our options for growth, particularly in our plans for a GW-scale BESS portfolio as a part of our FlexGen business, while continuing to provide energy security to the UK power system and delivering new energy services for our customers.” – Will Gardiner, Drax Group CEO
The acquisition is projected to yield returns significantly above Drax’s weighted average cost of capital, further solidifying the company’s position in the competitive energy market. With this move, Drax is betting on positioning itself for a cleaner, more flexible energy future while helping to strengthen the UK’s energy security.