Drax is planning to reignite its spark by snapping up a package of Scottish Power’s assets as the power-generation giant races to break its addiction to coal and biomass subsidies. The owner of the North Yorkshire site is understood to be in talks to buy a string of power units from the Big Six company which include gas-fired power, hydro power and small-scale biomass. Both companies declined to comment. Scottish Power, which also runs transmission lines and network grids, is reaping the benefit of its bet on wind power which is already driving growth for Spanish parent Iberdrola as it looks to expand into the US market. Drax is scrambling to avoid an earnings cliff-edge from the mid-2020s after backing biomass to secure its place in a low-carbon energy system. The Government’s ban on coal-fired power will force the group to shut its remaining coal generation units from 2025. Two years later the lucrative subsidy deal for the coal units it converted to biomass will end. Drax raked in £730m pounds in biomass subsidies last year, but reported earnings of just £229m from its power-generation business and a pre-tax loss of £183m for the group.
Telegraph 22nd Sept 2018 read more »