3i takes on Russell to find European power plays

Russell, who was sacked from ScottishPower in January last year, has taken on a one-day-a-week role of industrialist in residence with the FTSE 100 investment group, which will see him working across Europe identifying, evaluating and executing investment opportunities in the energy sector.

3i said the appointment was a major step forward in its ambition to become the leading private equity player in the European gas and power market.

The London-based firm has an established Aberdeen-based presence in the sector, but has recently been making investments further downstream, such as in Belgian renewable energy company Electrawinds, in which it invested 30 million (20m) in December, and Indian power transmission and distribution equipment group Vijai Electricals, for which it paid more than $25m (12.8m) for a minority stake.

Russell said he believed the market was ripe for 3i to continue the drive.

He said: "Europe is seeing major changes in its power market, be it from the effect of liberalisation, the spread of regulation, some of the big mergers with forced divestments, or climate change and the renewables drive. All of that is creating opportunities for 3i to extend its investment in the power sector in Europe.

"My role is to help them develop that side of the business."

Graeme Sword, head of 3i's oil, gas and power team, said Russell's profile, experience and connections in the gas and power industry "will be invaluable in enhancing the dynamics of our team and enabling us to further realise our ambitions of becoming the leading private equity player in the European market".

Russell, a chartered accountant by trade, worked at ScottishPower for 12 years, initially as finance director before being appointed chief executive in 2001.

More recently he has taken on a range of non-executive roles, including joining the board of Johnston Press in January.

Last month he was also announced as the chairman of Remploy, an organisation that helps thousands of disabled people into employment. He has been made a CBE for his work in the voluntary sector.

Russell, who holds a further four non-executive roles, said he believed there was room for another couple of part-time roles.

His latest job could see his schedule filled, with the 54-year-old likely to take on several chairmanships with companies he advises 3i to invest in.