Veolia has agreed to purchase a gas-powered power plant in Hungary (Gönyű locality), from the German energy group Uniper, the French utility company announced on Monday, DPA and Reuters report, according to Agerpres.

The transaction will help the unit provide flexible electricity generation capacity, which is crucial as more and more renewable energy capacity is brought online and countries in Europe need flexible capacity to balance their grids, stated Veolia.

“This agreement is exactly in line with our ambitions to develop flexible capacities to complement the stabilization of the electricity grid in Europe,” said Estelle Brachlianoff, Veolia’s CEO.

The purchase agreement was made through Veolia’s Hungarian subsidiary, and the transaction must be approved by regulatory authorities.

By purchasing the 430 megawatt (MW) plant, Veolia’s portfolio reaches 2.4 GW, equivalent to the energy needed for 2.6 million people.