RNS Number: 1217G
Drax Group plc
(“Drax” or the “Company”; Symbol:DRX)
Drax is pleased to announce that commissioning of Hirwaun Power Station is now complete and Drax has assumed commercial control from the developer Metlen Energy & Metals. Hirwaun, which is located in South Wales, is the first of three 299MW Open Cycle Gas Turbine (OCGT) plants which Drax is developing in England and Wales.
Drax Group CEO, Will Gardiner, said: “The successful commissioning of our first OCGT plant is a landmark moment for Drax.
“The energy transition is creating opportunities for us to invest and grow our business in line with the country’s energy needs. Alongside our OCGT developments, we have made initial investments in Battery Energy Storage Systems (BESS), which we see as an attractive market. We are continuing to explore options to invest in flexible and renewable energy, supporting energy security, creating value for stakeholders and attractive returns for shareholders in line with our capital allocation policy.”
The three OCGTs combined will provide capacity of c.900MW when fully commissioned and be remunerated via a combination of peak power generation, system support services, and long-term index-linked Capacity Market agreements. These Capacity Market agreements extend to 2039 and are worth over £260 million in revenue.
The sites benefit from a low fixed cost base with operation and dispatch managed centrally by Drax and day-to-day management of the sites by Siemens Energy.
Power generation and system support capabilities
The flexibility of OCGTs allows them to switch on and off quickly to meet periods of high demand, which supports the increased use of intermittent renewables across the UK system, supporting energy security, with a reduced dependence on fossil fuels and a reduction in net carbon emissions.
In addition, the OCGTs have been built with a clutch mechanism between the turbine and generator, allowing for them to operate as a Synchronous Compensator, which can provide additional non-generation services, such as inertia and voltage control, without engaging the gas turbine.
With the evolution of the UK market, continued roll out of renewables and an increased focus on energy security, Drax believe that demand for and value of these types of services will increase.
Featured image credit: Metlen Energy and Minerals
Enquiries:
Drax Investor Relations:
Mark Strafford
[email protected]
+44 (0) 7730 763 949
Media:
Drax External Communications:
Aidan Kerr
[email protected]
+44 (0) 7849 090 368
Website: www.drax.com
