Capacity Market Agreements

Drax Group PLC

28 February 2024

 

28 February 2024

Drax Group plc

("Drax" or the "Company"; Symbol: DRX)

Capacity Market Agreements

T-4 auction - provisional results for existing pumped storage and hydro assets

Drax confirms that it has provisionally secured agreements to provide a total of 462MW of capacity (de-rated 432MW) principally from its pumped storage and hydro assets⁽¹⁾. The agreements are for the delivery period October 2027 to September 2028, at a price of £65/kW⁽²⁾, with income of around £28 million in that period. These are in addition to existing agreements which extend to September 2027.

T-4 auction - provisional results for refurbishing pumped storage

Drax has also provisionally secured agreements to provide a total of 240MW of capacity (de-rated 226MW) for the refurbishment of Cruachan Power Station units 3 and 4⁽³⁾. The agreements are for the delivery period October 2027 to September 2042, at a price of £65/kW⁽²⁾, with income of around £221 million in that period.

The capital cost of this development is approximately £80 million.

Enquiries:

Drax Investor Relations: Mark Strafford

[phone]

Media:

Drax External Communications: Aidan Kerr

[phone]

Website: www.drax.com

Notes:

(1)   Cruachan Pumped Storage (units 1 and 2), the Galloway hydro scheme (Tongland, Kendoon and Glenlee) and three small legacy gas turbines at Drax Power Station (96MW, de-rated 91MW).

(2)   Capacity Market agreements stated in 2022/23 real-terms, with payments indexed to UK CPI.

(3)   Cruachan Power Station is a 440MW power station currently comprised of four units - 2 x 120MW (units 1 and 2) and 2 x 100MW (units 3 and 4). The refurbishment of units 3 and 4 will increase its capacity to 480MW (4 x 120MW units).

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