The share price of Britain’s biggest power station operator has jumped to a five-month high after the European commission approved subsidies for its conversion to burn wood pellets instead of coal. Drax was awarded a renewable energy subsidy contract by the government in 2014 to switch the third unit of its coal power station in North Yorkshire over to biomass. That prompted a state-aid investigation by the commission, which was concerned the estimates of the plant’s performance were too generous and Drax would be overcompensated. On Monday the investigation cleared the subsidy, which sees a guaranteed price paid for electricity generated by the plant. The commission said its analysis found the support would “not result in overcompensation” and would not unduly distort the wood market that will supply the plant with 2.4m tonnes of pellets a year.
Guardian 19th Dec 2016 read more »