Vattenfall has signed an agreement to divest its Independent Distribution Network Operator (IDNO) business in the UK, Vattenfall Networks Ltd, to Eclipse Power Limited, owner of another IDNO business - Eclipse Power Networks. Eclipse Power Group is a wholly owned subsidiary of the Octopus Sky Fund, which owns and manages infrastructure across the UK. The sale supports Vattenfall’s purpose to enable fossil freedom and its commitment to financial discipline, enabling the company to optimise resources and further invest in fossil-free energy solutions.
Since being established in 2018, Vattenfall IDNO has grown into a strong and competitive company, developing, owning, and operating electricity networks across Britain that connect homes, businesses, and renewable energy projects to the grid.
In 2024, a total of 20 projects were energised - marking the highest number achieved within a single calendar year. In addition, Vattenfall IDNO also signed a number of new contracts and entered into cooperation with customers from the waste management, renewable energy, AI infrastructure, and heavy industry sectors during the last year.
This transaction represents a valuable opportunity for Vattenfall and the IDNO business. While customers, suppliers, and employees can expect continuity and confidence in ongoing operations, the integration with Eclipse will provide increased opportunities for the IDNO business to scale up, supporting growth and accelerating electrification across the UK.
The sale is expected to be concluded by the end of 2025. Vattenfall’s other UK operations – including onshore and offshore wind, energy trading, and district heating – continue as normal.
Annika Viklund, Senior Vice President and Head of Business Area Distribution at Vattenfall, said:
'Today’s agreement ensures the Independent Distribution Network Operator business can continue to grow and play an important role in further electrification. Vattenfall’s IDNO business has performed extremely well since entering the UK market, which is a testament to the focus and dedication of our colleagues. I want to thank them for all they’ve done and wish them the best as they carry on their good work.'
Spencer Thompson, Chief Executive of Eclipse Power Limited, said:
'The acquisition of Vattenfall’s UK electricity distribution business strengthens Eclipse Power’s position in a competitive market and creates opportunities for further innovation in the industry. Vattenfall is a strong cultural and technical fit for Eclipse Power and brings together highly skilled teams with shared values and a commitment to delivering long term value to clients, partners and employees.
'The acquisition enhances Eclipse Power’s ability to serve customers with high quality network solutions across various sectors in the UK energy market, whilst creating opportunities for growth and people development.'
About Vattenfall
Vattenfall is a leading European energy company, which for more than 100 years has electrified industries, supplied energy to people’s homes and modernised people’s way of living through innovation and collaboration. We work to enable the fossil freedom that drives society forward. We are committed to building a future where everyone can choose fossil free ways to move, make and live. Our goal is net zero emissions in our entire value chain by 2040 at the latest. We employ approximately 20,000 people, have around 12 million customers and operate mainly in Sweden, Germany, the Netherlands, Denmark and the UK. Vattenfall is fully owned by the Swedish state. For more information: Fossil freedom – Vattenfall.
About the Octopus Sky Fund
The Octopus Sky Fund (Octopus Renewables Infrastructure SCSp) is an open-ended evergreen fund, which has raised over £2bn from institutional investors. The fund invests into a globally diversified portfolio of renewable and energy infrastructure assets. The Sky Fund is managed by Octopus Renewables Limited (ORL) via a General Partnership Agreement. Eclipse Power and the associated registered companies within the group are separate legal entities, with an independent management structure.
Source: Vattenfall
