Drax provisionally secures £37m of capacity agreements

Drax said on Monday that it has provisionally secured agreements to provide a total of 2,562MW of capacity from its existing gas, pumped storage and hydro assets in the latest T-4 capacity auction.

The FTSE 250 company said the agreements are for the delivery period from October 2023 to September 2024, at a price of £15.97 per kilowatt, and are worth £37m in the period.

It said the new arrangements were in addition to existing agreements, which extend to September 2023.

Drax said it did not accept an agreement for the 60MW combined cycle gas turbine (CCGT) at Blackburn Mill.

“A new-build CCGT at Damhead Creek and four new-build open cycle gas turbine projects participated in the auction but exited above the clearing price and did not accept agreements,” the company’s board said in its statement.