Capacity Market Agreements for Existing Coal Units

9 February 2018

Drax Group plc

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

 

Capacity Market Agreements For Existing Coal Units

 

Drax confirms that it has provisionally secured agreements to provide a total of 1,217MW of capacity (de-rated from 1,382MW) from two existing coal units⁽¹⁾. The agreements are for the delivery period October 2021 to September 2022, at a price of £8.40/kW⁽²⁾ and are worth £10 million.

 

Two Open Cycle Gas Turbine (OCGT) projects participated in the auction but exited above the clearing price. Drax expects that these projects will now go on to participate in the next T-4 auction.

 

Enquiries:

Drax Investor Relations: Mark Strafford

+44 (0) 1757 612 491

 

Media:

Drax External Communications: Ali Lewis

+44 (0) 1757 612 165

 

Website: www.drax.com

 

Notes:

(1)   Units 5 and 6, plus three small existing gas turbines, all at Drax Power Station.

(2)   Capacity agreements stated in 2016 real-terms, with payments indexed to UK CPI.

END