REG - Drax Group Plc - Capacity Market Agreements

DraxAnnouncement

12/03/2025 07:00

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RNS Number : 2740A  Drax Group PLC  12 March 2025

12 March 2025

Drax Group plc

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

 

Capacity Market Agreements

 

T-4 auction - provisional results for existing assets

Drax confirms that it has provisionally secured agreements to provide a total
of 434MW of capacity (de-rated 402MW) principally from its pumped storage and
hydro assets((1)). The agreements are for the delivery period October 2028 to
September 2029, at a price of £60/kW/year((2)), with income of around £24
million in that period. These are in addition to agreements for existing
assets which extend to September 2028.

 

T-4 auction - provisional results for refurbishing hydro asset

Drax has also provisionally secured an agreement to provide a total of 24MW of
capacity (de-rated 22MW) for the refurbishment of Glenlee((3)). The agreements
are for the delivery period October 2028 to September 2043, at a price of
£60/kW/year((2)), with income of around £20 million in that period.

 

Enquiries:

Drax Investor Relations:

Mark Strafford

mark.strafford@drax.com

+44 (0) 7730 763 949

 

Chris Simpson

Chris.Simpson@drax.com

+44 (0) 7923 257 815

 

Media:

Drax External Communications:

Andy Low

Andrew.Low@drax.com

+44 (0) 7841 068 415

 

Website: www.drax.com (http://www.drax.com/)

 

Notes:

(1)   Cruachan Pumped Storage (units 1 and 2), the Galloway hydro scheme
(Tongland and Kendoon) and three small legacy gas turbines at Drax Power
Station (92MW, de-rated 86MW).

(2)   Capacity Market agreements stated in 2023/24 real-terms, with payments
indexed to UK CPI.

(3)   Glenlee is a hydro scheme within the Galloway hydro scheme. It is
comprised of 2 x 12MW turbines, which will be refurbished as a part of the
works on the site.

END

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