Vattenfall Divests UK Electricity Distribution Arm to Eclipse Power, Strengthens Focus on Fossil-Free Investments

Vattenfall Divests UK Electricity Distribution Arm to Eclipse Power, Strengthens Focus on Fossil-Free Investments

(IN BRIEF) Vattenfall has agreed to sell its UK Independent Distribution Network Operator business, Vattenfall Networks Ltd, to Eclipse Power Limited, part of the Octopus Sky Fund. Since its launch in 2018, Vattenfall IDNO has become a key operator in electricity distribution, connecting homes, businesses, and renewable projects to the grid. The sale enables Vattenfall to deepen investment in fossil-free energy while allowing Eclipse to expand its market influence and accelerate electrification across the UK. With all stakeholders set to experience operational continuity, the sale is expected to complete by the end of 2025. Vattenfall’s other UK activities will continue unaffected.

(PRESS RELEASE) STOCKHOLM, 18-Nov-2025 — /EuropaWire/ — Vattenfall has entered into an agreement to sell its Independent Distribution Network Operator (IDNO) business in the UK, Vattenfall Networks Ltd, to Eclipse Power Limited. Eclipse Power, operated under the Octopus Sky Fund umbrella, already owns a separate IDNO entity—Eclipse Power Networks—and specialises in managing infrastructure throughout the United Kingdom. This strategic move supports Vattenfall’s mission to drive fossil freedom while ensuring prudent financial stewardship, allowing the company to allocate more capital toward renewable and emissions-free energy initiatives.

Founded in 2018, Vattenfall’s UK IDNO unit quickly established itself as a competitive force in the energy distribution space, designing, owning, and managing electrical networks that connect residential and commercial developments—as well as renewable energy sites—to the national grid. Vattenfall IDNO achieved a milestone in 2024 by energising 20 new projects, the highest annual total since its inception. Over the past year, the business also secured new contracts and entered partnerships with clients in sectors such as AI infrastructure, renewable generation, heavy industry, and waste management.

The acquisition represents a mutually beneficial opportunity that preserves business continuity for customers, staff, and suppliers while offering significant growth potential under Eclipse’s expanded platform. The integration will reinforce Eclipse’s presence in the IDNO market and accelerate distributed electrification solutions across the UK.

The transaction is expected to close by the end of 2025. Vattenfall will continue operating its other UK energy activities—spanning onshore and offshore wind power, district heating infrastructure, and energy trading services—without disruption.

Annika Viklund, Senior Vice President and Head of Business Area Distribution at Vattenfall, highlighted the significance of the move:
“Today’s agreement ensures the IDNO business can further scale its vital role in electrification. Our colleagues have built a strong, high-performing business in a competitive market, and I thank them for their dedication and commitment in achieving this success.”

Echoing this sentiment, Spencer Thompson, Chief Executive of Eclipse Power Limited, commented:
“This acquisition enhances Eclipse Power’s capacity in a fast-evolving market. Vattenfall’s expertise and culture aligns well with ours, allowing us to deliver more innovation and long-term value to our customers, partners, and employees.”

For more information, please contact:
Tim Dunford, Director, UK Media Relations, T: +44 (0)7785 552 666, tim.dunford@vattenfall.com
Vattenfall Press Office, T: +46 8 739 50 10, press@vattenfall.com

SOURCE: Vattenfall