A better near-term pricing environment should result in better captured prices for Drax across the board and we have factored in an increase in our assumptions for FY23 and FY24. This follows our revised assumptions on capacity market pricing published earlier in the week. Our low base case valuation rises to 748p from 724p and if we include biomass expansion this rises to 902p from 846p. We now see this central case valuation as most relevant in assessing the company and our forecasts are based on this assumption. We still see valuations above £10 being achievable with new investment in BECCS and expansion at Cruachan.
