Eclipse Power Group is set to acquire Vattenfall Networks Ltd, with the deal set to create one of the UK’s largest independent network distribution operators.
The deal, which is expected to complete by the end of 2025, will bring together two specialist IDNO teams to scale delivery of power connections for housing, renewables and data centres across the UK. On completion, the combined business is expected to rank among the country’s leading IDNOs by scope and capability.
The company, a wholly owned subsidiary of the Octopus Sky Fund, owns and manages electricity connection infrastructure nationwide. It said the deal is intended to support investment in net zero assets and streamline grid connections for developers and businesses at a time when bottlenecks are delaying major schemes.
Spencer Thompson, CEO at Eclipse Power, noted, “Eclipse stands for simplicity in electricity connections. The acquisition of Vattenfall’s UK distribution business demonstrates our continued confidence in the IDNO model and in the energy infrastructure investment landscape.
“As the market evolves, larger IDNOs play a vital role alongside local DNOs, ensuring resilience, shared capabilities and long-term sustainability.
“Vattenfall is a strong cultural and technical fit for Eclipse, and we’re proud to bring together two highly skilled teams with strong IDNO expertise, which allows us to turbocharge renewable initiatives, provide greater consumer value and get critical infrastructure projects moving again.”
Vattenfall Networks entered the UK market as an IDNO with a focus on adopting and operating new distribution assets. It was operated separately from the wider Vattenfall, which remains a major player in the power sector globally – and is one of the largest operators in UK offshore wind.
Stewart Dawson, Managing Director of Vattenfall Networks Ltd, commented, “Vattenfall’s IDNO business has performed strongly since entering the UK market. Eclipse’s strength, innovative culture, and commitment to fossil-free solutions make it the ideal environment for us to continue to thrive. This acquisition ensures we can continue to set new standards in UK power connections and deliver outstanding services to UK energy customers.”
IDNOs design, build and adopt new distribution networks, competing with distribution network operators on ‘contestable’ connections while operating under Ofgem regulation. Proponents argue that a larger balance sheet and shared expertise can speed up delivery, particularly for complex, high-load projects such as data centres and renewable generation where flexible connection solutions are required.
Eclipse said the enlarged group would extend its distribution and transmission expertise to offer more flexible and cost-effective connections. The firm pointed to the industry context of long queues for capacity and the need for faster routes to connect low-carbon projects.
The transaction is expected to be completed by the end of 2025. No financial terms were disclosed. The companies said the combined entity would focus on simplifying customer journeys for connections and accelerating investment in enabling infrastructure.
