Financial adviser appointed on £1.2bn Trafford CCGT

Carlton Power has mandated Macquarie Capital to raise equity and debt for the 1.8GW UK power plant project.

UK developer Carlton Power has appointed Macquarie Capital its sole financial adviser on raising debt and equity for its 1.8 gigawatt (GW) Trafford Power combined cycle gas turbine (CCGT) power station project.

The plant, located in Greater Manchester, UK, is budgeted at £1.2 billion (€1.5 billion; $1.99 billion). It will incorporate CCGT technology with greater efficiency and flexibility than the country’s existing gas-fired power stations, Carton Power said in a statement.

The developer plans to enter the facility into the UK’s Government Capacity Market Auction to be held in December. The Capacity Market will offer payment support for 15 years to new built power plants provided they can be turned on to supply electricity in times of stress on the grid.

Macquarie will be approaching equity investors and debt providers to help garner financing for the project prior to the auction.

“The upcoming Capacity Market Auction is an important milestone for the UK energy sector and we believe that Carlton is extremely well positioned given its proven track record,” said mark Dooley, head of development capital at Macquarie Capital.

The scheme, which offers all capacity providers predictable revenue from capacity payments, got the green light from the European Commission last July. It comes at a time when the UK is reforming its electricity market to help deliver low-carbon, reliable electricity as a number of its ageing nuclear and coal plants go offline over the next decade.