The Future Of Drax Power Station
This first paragraph from the Wikipedia entry for Drax power station gives a factual description of the power station.
Drax power station is a large biomass power station in Drax, North Yorkshire, England. It has a 2.6 GW capacity for biomass and had a 1.29 GW capacity for coal that was retired in 2021. Its name comes from the nearby village of Drax. It is situated on the River Ouse between Selby and Goole. Its generating capacity of 3,906 megawatts (MW), which includes the shut down coal units, is the highest of any power station in the United Kingdom, providing about 6% of the United Kingdom’s electricity supply.
This second extract from Wikipedia gives details of its current biomass contract and subsidy.
Drax’s subsidy scheme was scheduled to end in 2027, with Drax arguing for an extension to 2030. In February 2025, the UK government extended its operation from 2027 to 2031, but at a reduced 27% maximum load factor using 100% sustainable wood, so it would run “less than half as often as it currently does”, generally only at times of high electricity demand. Drax was given a contract for difference at £113/MWh in 2012 pounds, CPI inflation linked so about £155/MWh in 2025.
Note.
- Rishi Sunak’s Government extended the contract.
- It will now run on 100% sustainable wood, which includes sources like sawmill residues, forest thinnings and certain agricultural products.
- It has a similar type of contract to wind farms and energy storage.
I asked Google AI,”Does Drax Power Station Provide Grid Stability?, and received this answer.
Yes, Drax Power Station—along with its affiliated hydro assets—provides critical grid stability to the UK. As the UK’s power grid shifts toward intermittent renewables like wind and solar, Drax’s dispatchable generation and specialized system support services help maintain a secure electricity network.
The key stability services provided by the Drax portfolio include:
Inertia: Drax’s large spinning turbines and pumped hydro facilities provide vital inertia to the grid. This acts like a shock absorber, helping to control changes in frequency (maintaining 50Hz) and preventing power cuts.
Reactive Power: The facilities help manage voltage support and move power efficiently across different parts of the network.
Dispatchable Power: Unlike weather-dependent generation, Drax’s biomass and hydro plants can be ramped up or down on demand, providing firm capacity and flexible response to real-time grid needs.
Pumped Storage Support: Through its subsidiary Cruachan Power Station in Scotland, Drax operates a pumped hydro storage plant that actively balances supply and demand and holds specialized stability contracts with the National Grid Electricity System Operator (ESO).
So if you love or loathe the power station, it does a lot more than burn biomass to generate electricity.
Drax Power Station And Eastern Green Link Two
The Eastern Green Link Two web site is here.
This is the sub-heading
Eastern Green Link 2 (known as EGL2) is one of the most significant strategic energy infrastructure developments the UK has seen in recent years, connecting the north of Scotland to Yorkshire via the sea.
These two initial paragraphs gives more details.
EGL2 is a 505km electricity superhighway which will enable the transfer of power from Scotland to England (and vice versa) via a subsea cable. This two-gigawatt high voltage direct current (HVDC) cable is connecting Peterhead in Aberdeenshire and Drax in North Yorkshire and once operational, will carry enough electricity to power two million homes.
EGL2 will scale up the UK’s capacity to transport home-produced clean energy, predominantly from offshore wind, from where it is generated to where there is demand. By doing so it will increase the security, resilience, and stability of the UK’s transmission network.
EGL2 is the second of a planned seven interconnectors between Scotland and the South.
The first was the Western HVDC Link between Hunterston in Scotland and Flintshire Bridge in Wales, which became operational in 2013.
EGL2 will go between Peterhead in Scotland and Drax power station.
So electricity from Scotland will be able to replace up to two GW of the biomass, that Drax power station currently uses as fuel.
Drax And Solar Power
This Google Map shows Drax power station.
If Drax wanted to add solar power to the site, I’m sure it would be possible.
- There is plenty of space.
- There is a substantial connection to the electricity grid.
After the purchase of Bluefield Solar Income Fund, Drax probably are well-placed to develop as much solar-power as they need.
Bluefield Solar Income Agrees To PS548 Million Cash Offer From Drax
The title of this post is the same as this article from A J Bell.
These two paragraphs give more details of the deal.
Bluefield Solar Income Fund Ltd on Monday said it had agreed to a £548 million cash offer from Drax Group PLC, which implies an enterprise value of £1.08 billion.
The solar-power focused investment firm has received a bid from Drax Smart Generation Holdco Ltd, which is wholly-owned by Selby, North Yorkshire-based electricity generator Drax. Both firms are members of the FTSE250 index.
I see this deal, to be very much like Centrica’s purchase of the Grain LNG Terminal, which I wrote about in Investment in Grain LNG.
I asked Google AI,”How Do Drax And Centrica Compare Financially?”, and received this answer.
Centrica and Drax have contrasting financial profiles:
Centrica operates on a much larger scale as a diversified retail and energy supply giant, generating £22.4 billion in annual revenue, while Drax is primarily an electricity generator focused on biomass, generating £5.4 billion.
Both companies face challenges from lower global energy prices.
I asked Google AI,”How Do Drax And Centrica Compare On Engineering And Research?”, and received this answer.
Drax and Centrica approach engineering and research from opposite ends of the energy sector: Drax is a mega-scale renewable generator focused on heavy industrial decarbonization, while Centrica focuses on consumer technology, smart energy networks, and servicing.
In addition, now that Centrica has bought the Grain LNG Terminal, Centrica seems to do a lot of LNG trading and storage and they appear to be moving into the bunkering of low-carbon fuels for shipping and have added a second site to Grain, with the acquisition of Severn power station at Newport.
Drax haven’t laid out their plans in detail yet.
These to paragraphs from Drax give a few hints.
Drax sees the purchase supporting growth in the UK renewables market, complementing its existing assets and facilitating £2 billion in incremental investment which Drax has planned for ‘flexible’ energy between 2025 and 2031.
Bluefield generated earnings before interest, tax, depreciation and amortisation of about £130 million in financial 2025, Drax noted, and has the potential ‘to grow Drax’s Ebitda from renewables, offering greater predictability and visibility of cash flows from a large operational portfolio’. This will reduce Drax’s earnings risk from grid connection delays, Drax added.
The last sentence seems to hint, that the deal comes with good connections to the grid, which given what you read about the problems of connecting must be a good thing.
Why Are Drax Building Open Cycle Gas Turbine Power Stations?
I asked Google AI, this question and received this answer.
Drax is building Open Cycle Gas Turbine (OCGT) power stations to provide rapid-response, back-up electricity when weather-dependent renewables (like wind and solar) cannot meet grid demand. This flexible generation stabilizes the UK grid, secures energy supplies, and supports the transition to a lower-carbon energy system.
Drax’s strategic move into OCGT is driven by several key factors:
Fast Start Capabilities: OCGT plants act like giant jet engines. They can go from a cold start to full power output in less than 20 minutes, making them ideal for meeting sudden spikes in electricity demand.
Back-up for Intermittent Renewables: Because output from wind and solar fluctuates with the weather, OCGT stations fill the generation gaps, ensuring continuous energy security without relying on older, dirtier coal power.
System Stability (Synchronous Compensation): Drax has equipped its new OCGTs (such as the Hirwaun Power Station) with a special clutch mechanism.
This allows the turbines to disconnect from the generator so the plants can act as “synchronous compensators.” In this mode, they provide crucial grid stabilization services—like inertia and voltage control—without burning gas.
Meeting Capacity Market Needs: These facilities primarily operate only during times of peak stress or low renewable output (e.g., 500 to 1,500 hours a year), providing a cost-effective support mechanism for the wider electricity system.
This Google Map shows Hirwaun Power Station.
Note.
- Hirwaun Power Station is indicated by the red arrow.
- Hirwaun Power Station is a 399 MW Open Cycle Gas Turbine Power Station.
- The A 465 is the Heads of the Valleys Road.
- Solar farms can be seen between the buildings.
Could Drax see commercial advantages to put the two systems together?
The Anonymous Widower 