Power generation company Pacific Energy (ASX:PEA) has announced it will acquire a Victorian power generation plant, NovaPower, for $7.5 million.
The funding will come from the company’s available facilities, and settlement is expected in December this year.
The acquisition of the 10MW gas-fired power station in Victoria increases the group’s contracted and installed capacity to over 300MW.
The company has identified opportunities to enhance power supply at the plant, with gas supply infrastructure in place to supply 20MW of power.
NovaPower was commissioned in 2014 as a high efficiency, low emissions gas-fired power station to generate quick response to electricity demand in peak periods, which was partially funded by the Clean Energy Finance Corporation.
Shares in Pacific Energy (ASX:PEA) are trading 1.8 per cent higher to $0.57.