UK Government Signs Contract With Drax
“We are pleased to have agreed to this new contract with the UK Government, which will support UK energy security into the 2030s and deliver a net saving for consumers compared to alternative sources of dispatchable generation,” the company states.
Drax will have an annual 6TWh generation collar. Under the agreement, Drax Power Station can step in to increase generation when there isn’t enough electricity, potentially avoiding the need to burn more gas or import power from Europe. When there’s too much electricity, Drax can turn down and help to balance the system.
The agreement includes enhanced biomass sustainability requirements, including ensuring that all biomass used at Drax Power Station is sustainably sourced and substantiated through monitoring, reporting, and verification requirements, including enhanced auditing of the biomass supply chain.
However, the contract means the annual demand for pellet fuel by the four Drax units will be significantly lower than it has been, by perhaps a few million tonnes.
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