Drax has signed a deal to purchase Flexitricity Limited, a UK optimiser of flexible energy assets, from Quinbrook.

The transaction values the Edinburgh-based business at £36 million, subject to customary closing adjustments. Completion is expected in the first quarter of 2026 and remains contingent on regulatory approvals and processes.

The acquisition is expected to deliver returns significantly above Drax's weighted average cost of capital (WACC).

Founded in 2004, Flexitricity provides optimisation and route-to-market services for owners of flexible energy assets through its proprietary controls platform, enabling participation in the wholesale, balancing and ancillary services markets. The company delivers both front-of and behind-the-meter solutions for grid-scale assets and demand response, overseeing more than 900MW of operational capacity, predominantly battery energy storage systems (BESS), gas peakers, renewables and demand-side response.

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Drax said Flexitricity's scalable technology will support its plans to develop a gigawatt-scale pipeline of BESS opportunities, combining ownership of physical assets with optimisation of third-party assets using route-to-market, floor and tolling structures. The Group already provides a route to market for about 2,000 embedded third-party renewable assets with roughly 800MW of capacity via its Drax Energy Solutions arm.

Flexitricity employs around 85 people at its Edinburgh base, all of whom will join Drax upon completion.

Drax Group CEO, Will Gardiner, said: "We are pleased to announce the acquisition of Flexitricity. We are ambitious about growing and developing our FlexGen business and Flexitricity's technology and team are a strong strategic fit for us.

"Adding Flexitricity's expertise and capability which uses AI and advanced machine learning software, delivered via their proprietary platform, supports our options for growth, particularly in our plans for a GW scale BESS portfolio as a part of our FlexGen business, while continuing to provide energy security to the UK power system and delivering new energy services for our customers.

"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."

Quinbrook is a UK-based global investment manager focused on the energy transition. Regulatory clearances include processes under Ofgem and the National Security and Investment Act 2021. Drax previously outlined its ambition to build a GW scale BESS pipeline on 11 December 2025.