Drax secures two agreements for coal units

Drax secures two agreements for coal units

The power giant Drax has secured two provisional agreements to provide power from two coal power units, worth a combined £10 million, which will provide a total of 1,217 Megawatts of capacity.

The provisionally secured agreements will deliver power between October 2021 and September 2022 at a price of £8.40 per Kilowatt.

Two Open Cycle Gas Turbine (OCGT) projects also took part in the auction but exited before the clearing price.

Drax suggested that it forecasts the projects to continue to participate in the next T-4 auction.

This comes after analysis from Aurora Energy Research suggested coal generation would double in the early 2020s, due to the carbon price freeze announced in the 2017 Autumn Budget.

Leave a Comment

Your email address will not be published. Required fields are marked *