Drax has seen success in yesterday’s Capacity Market auction, securing contracts which extend support for the Cruachan pumped storage project and the hydro projects in Scotland. It has also won long term contracts for three of the four small gas peakers it has under option. Any development of these remains subject to the Group’s decarbonisation plans. The market clearing prices were broadly in line with previous years. There is some speculation that prices will be stronger in future rounds as coal and nuclear capacity exits the market. As things stand this is useful additional income for the projects bringing an additional £10m of revenue to the pumped storage and hydro assets during the delivery period.
