Drax is set to acquire Edinburgh-based utility company Flexitricity in a £42 million deal that the energy giant said will support its plans to build a gigawatt‑scale pipeline of battery energy storage system opportunities.

The acquisition, which will see Flextricity’s 85 staff join Drax, is expected to close over the first quarter of 2026, with Flexitricity valued at £36 million, plus an estimated net working capital and cash adjustment of £6 million. Investment manager Quinbrook said it is offloading the business after helping Flexitricity double its portfolio capacity and launch major new growth initiatives since acquiring the firm in 2020. 

“Flexitricity was and remains today the true pioneer of flexible energy solutions in the UK market,” said Brian Restall, CEO of Quinbrook.  

“Given the UK’s ambitious net zero goals, we believed that our growth investment into the business represented an opportunity to create value for our investors, which we have succeeded in doing with this sale to Drax.”

Flexitricity’s platform manages flexible energy assets and connects them to markets where they can earn revenue, such as wholesale trading and grid‑balancing services, working with both large grid‑connected sites and on‑site systems.

Drax said that the Scottish company already provides demand response services to more than 900MW of operational assets, primarily for battery storage systems, small gas plants, and renewables, while Drax itself supports around 2,000 third‑party renewable assets with a route to market, totting up to around 800MW.

Recommended reading

• Hydrogen “Bottleneck” Jeopardising Billions in Clean Energy
• Investors shift focus to energy demand in AI market
• AI Council looks to energy grid reform to power growth zones

Building on Flexitricity’s platform, which uses AI and machine learning capabilities, Drax said it can ramp up plans to develop a gigawatt-scale pipeline of battery energy storage system (BESS) projects, covering both its own sites and third‑party assets that need optimisation and market access.

“We are ambitious about growing and developing our FlexGen business and Flexitricity’s technology and team are a strong strategic fit for us,” said Will Gardiner, Drax Group CEO.

“I would also like to welcome Flexitricity’s employees to the Group and its customers who we look forward to working with and continuing to serve following completion of the acquisition.”