Tag: Flexgen

Why flexibility has become the UK’s shock absorber

7 August 2026

Opinion

This article has been republished with permission from Enlit World.

Will Gardiner, Drax CEO

Britain’s electricity system has never stood still. Over the past century it has continually reinvented itself to meet the needs of the country it serves.

The first major tasks of energy transformation in the twentieth century included mass electrification and cleaning up power generation – driven by the formation of the National Grid in 1926, the phase out of coal, and the growth of renewable energy.

Today, three major pressures have converged including the continued growth of renewable energy, which is bringing greater intermittency into the electricity system, electricity demand is rising sharply as more sectors electrify and the grid is coming under greater strain as new technologies and infrastructure connect to the network.

These are creating a new defining test: building system flexibility that can respond to more variable supply, volatile demand, and a strained grid. Flexibility is not a nice-to-have. It is the system’s shock absorber.

Essential flexibility

Flexibility operates on both the supply and demand sides of the energy equation, in the form of storage, generation (dispatchable and renewable), smart energy management, and shifting workloads.

Achieving this depends on a range of technologies – including transmission infrastructure, flexible generation assets, long-duration energy storage and battery energy storage systems (BESS), and asset optimisation platforms that help manage electricity demand and supply in real time – each playing an important role in supporting a more resilient grid.

No single technology provides the answer. Together, they help balance intermittent renewable generation, maintain system reliability, improve resilience during periods of high demand and reduce overall system costs.

As energy requirements continue to evolve, flexibility has become just as important as generation itself in ensuring the UK can deliver a secure, reliable and lower-carbon electricity system.

Beyond energy

Getting flexibility right delivers benefits that extend well beyond the energy sector.

Recent geopolitical events – from Russia’s invasion of Ukraine to renewed tensions in the Middle East – have highlighted how quickly international energy markets can become volatile. Energy security and national security are becoming increasingly difficult to separate.

Greater domestic generation and increased system flexibility can help reduce that exposure, improve overall system efficiency, support more stable long-term energy costs, encourage investment and job creation, and strengthen the UK’s industrial competitiveness.

Most importantly, it creates the platform for broader economic modernisation. A flexible and resilient electricity system will help enable the technologies, industries and businesses that will drive the UK’s next chapter of growth.

Powering innovation

Any discussion about the future of the UK’s electricity system quickly turns to artificial intelligence. The UK Government forecasts that the country will need at least 6GW of AI-capable data centre capacity by 2030, which is roughly three times more than today’s capacity.

Data centres’ energy needs constantly fluctuate – sometimes by hundreds of megawatts per minute. As workloads surge, pause and restart, the challenge cannot be met by more power alone, but also needs to account for how that power is managed dynamically.

AI will undoubtedly play an important role in shaping future electricity demand patterns, but it is only one part of a much broader picture.

Reliable electricity underpins almost every area of modern innovation. We often think about breakthroughs in healthcare, advanced manufacturing or artificial intelligence as separate stories. The reality is they are not.

They all have one thing in common: they depend on a resilient, flexible electricity system. From more effective cancer treatments and AI-enabled medical imaging to increasingly automated factories and the data centres powering the digital economy, electricity is what makes those innovations possible.

I’ve always considered energy the silent partner behind economic growth. It may not always be the focus of public attention, but it is fundamental to enabling innovation across every sector. However, flexibility is what will decide whether that partner can keep up.

Without a system that can respond to changing patterns of demand, many of those ambitions simply cannot happen at the same speed, or they come at greater cost.

This changing reality has shaped our own thinking. We’ve been evolving from a predominantly single-technology business into a provider of system flexibility.

Defining test

Today, we’re investing across open cycle gas turbines (OCGTs), BESS and renewable generation. Our recommended offer for Bluefield Solar Income Fund has the potential to add approximately 900MW of solar and wind generation. Combined with our other flexible generation assets, our portfolio could exceed 3GW of power capacity if our offer is accepted.

For me, that’s not simply about growing our portfolio. It’s about ensuring we’re investing in the dynamic capabilities the UK will need to power progress. This is where Drax can play a different role not just producing power but helping the system respond when it matters most.

The UK’s electricity system has continually adapted to meet new challenges over the past century, and effectively managing rising demand, intermittency, and more complex patterns of supply and demand will be no different.

That is why the next phase of our energy transition relies not simply on generating more renewable power, but ensuring we have the flexible infrastructure required to use it effectively.

Drax’s Biggest Deal Marks its Next Transformation

31 July 2026

Opinion

Will Gardiner, Drax CEO

For much of the last century, the key question was where electricity would come from. Now, the energy transition is entering a new phase. Increasingly, the question is not where the power would come from but how we can make the system work better.

Britain is seeing record levels of renewable and intermittent generation, growing electricity demand, increasing electrification and the emergence of AI-driven infrastructure that will require substantial new sources of power. At the same time, the system must remain secure, resilient and affordable. No single technology can deliver security, affordability and decarbonisation alone. The system needs renewables, flexible generation and storage working together. And we need to make the most effective use of every asset on the system.

There is a huge opportunity for the UK to unlock further investment in the energy infrastructure needed while supporting growth across the country. But making that opportunity a reality will require government and industry to work closely together to remove barriers to investment, speed up project delivery and accelerate reform of the grid and connection process. It also means making better use of existing infrastructure and connection capacity to meet rising demand and maintain UK competitiveness.

As Britain’s electricity network becomes more dynamic and decentralised, value increasingly comes from connecting technologies together and ensuring they operate efficiently.

Our ambition is to be at the forefront of that evolution.

Today marks an important milestone for Drax in our strategy to do just that, as we complete the acquisition of Bluefield Solar Income Fund.

The transaction adds around 900MW of operational solar and wind assets, alongside a 2.9GW development pipeline including joint ventures, making it the largest acquisition in our company’s history.

This acquisition is not just another addition to our portfolio; it’s about transforming our business to deliver what the UK energy system needs. I have seen Drax change profoundly over the last decade. Each time, the reason has been the same- Britains energy system has changed, and Drax has changed with it. When Drax Power Station was built, Britain needed reliable, dispatchable power to support economic growth and an expanding industrial economy. As climate change became an increasingly urgent challenge, we transformed Western Europe’s largest coal fired power station into Britain’s largest single source of renewable electricity, helping deliver a significant reduction in the UK’s reliance on fossil fuels while maintaining security of supply.

I am proud of Drax’s history, but I’m even more excited about what is coming next.

We are building a portfolio that combines biomass, hydro, pumped storage, battery storage, flexible gas generation, solar power, wind and market optimisation capabilities.

Today’s acquisition is a critical milestone in that strategy. It adds a substantial portfolio of operational solar and wind assets and a significant development pipeline, strengthening our renewable generation business at a time when the country needs more clean power. Combined with our existing flexible generation and battery portfolio, these assets strengthen our ability to support the electricity system during periods of both high renewable output and high demand.

With BESS and OCGT development sites included, our renewable generation business and flexible generation assets combined will have a power capacity of over 3GW – larger than Drax Power Station’s 2.6GW for the first time.

Earlier this year, we also completed the acquisition of Flexitricity, reflecting our belief that technology, optimisation and market participation will become increasingly important components of a successful energy business.

The thread running through this announcement is not just the acquisition of new assets, but that Drax is building a more diverse business built for what Britain needs.

Today’s acquisition helps us build the kind of company that can meet the challenge of energy security, affordability and sustainability. The opportunity ahead is not simply to generate more electricity, but to deliver more value from every megawatt. That is the future of energy — and it is where Drax intends to lead.

Drax completes ‘transformational’ £548 million acquisition of solar and wind assets

News

Drax Group plc is pleased to announce that it has completed the acquisition of renewable energy company Bluefield Solar Income Fund Limited (BSIF). The deal is transformative for Drax, adding solar and wind assets to our generation portfolio for the first time.

The deal provides Drax with 0.9GW of operating and under construction solar and wind assets, as well as a gross development pipeline of 2.9GW which could be constructed across the next decade. When combined with Drax’s BESS and OCGT development sites, our renewable generation business and flexible generation assets will have a larger combined power capacity of over 3GW than Drax Power Station’s 2.6GW for the first time.

The acquisition will increase the role Drax plays in supporting the UK’s goals of strengthening energy security, keeping power affordable and accelerating decarbonisation. Drax expects the deal to be backed by strong cash generation from BSIF’s existing operational portfolio, disciplined capital investment and attractive returns for Drax shareholders.

Drax Group CEO, Will Gardiner, said: “This is a transformational moment for Drax. By adding solar and wind to our portfolio for the first time, we are broadening the role we can play in supporting the UK’s energy security and helping to decarbonise the power system.

“As demand for electricity grows, the UK will need more renewable power, alongside the flexible generation and system support needed to keep the grid secure. This acquisition strengthens our platform for growth and will help us deliver long-term value for our shareholders.

“We’re proud to have been at the heart of Britain’s energy system for sixty years, and we’re investing in and evolving our business now to ensure we continue to deliver what the country needs for decades to come.”

Demand for electricity in the UK is expected to grow significantly in the years ahead, driven by new technologies such as AI and data centres, as well as the electrification of transport and industry. Drax believes the addition of solar and wind assets will strengthen its ability to support UK energy security, help decarbonise the power system and create long-term value for the business.

ENDS

Notes to editors

On 1 June 2026, the boards of Bluefield Solar Income Fund and Drax announced that they had reached agreement on an all-cash acquisition of BSIF by Drax, subject to BSIF shareholder approval. Following shareholder approval and completion of the court hearing today, the acquisition has now been approved and is effective from 31 July 2026. 

Media contact

Aidan Kerr
E: [email protected]
T: 07849090368

About Drax

Drax’s purpose is to enable a zero carbon, lower cost energy future. Our strategic aims are to be a UK leader in flexible, renewable generation and a global leader in sustainable biomass pellet production.

Our operations

Drax owns and operates a portfolio of flexible, low-carbon and renewable UK power assets – biomass, hydro, solar, wind, pumped storage and OCGT generation – which provide power and system support services to the electricity grid.

We are the UK’s largest source of renewable power by output, and Drax Power Station is the UK’s largest single source of renewable electricity by output.

Through our pellet production facilities in North America, Drax is a leading integrated producer of sustainable biomass.

Drax supplies renewable electricity to UK industrial and commercial customers, offering a range of energy-related services including energy optimisation, as well as electric vehicle strategy and management.

Website: www.drax.com

Balancing the grid: why optimisation matters more than ever

15 June 2026

Opinion

As more wind and solar power come online, the energy system is becoming more complex to manage. Supply is less predictable, demand is changing, and the need to balance both in real time is greater than ever.

In this discussion, Ross McKenzie brings together Drax CEO Will Gardiner, Chief Commercial Officer Paul Sheffield and Flexitricity CEO Andy Lowe to explore how optimisation is helping to meet that challenge.

Together, they unpack what optimisation means in practice, why it matters now, and how it can make energy systems more flexible, resilient and cost effective.

Watch the video here:

Betting on batteries: addressing intermittent inefficiencies at scale

2 June 2026

Opinion

This article has been republished with permission from ESS News.

As shockwaves from the Iran war continue to ripple through global oil and gas markets, countries across Europe have experienced soaring energy prices. Here in the UK, the average consumer’s power bill price cap has already spiked 18% per year, while businesses are experiencing increases of up to 80%.

At the same time, Spain has been largely insulated from the same supply chain disruptions. Over the last six years, it has invested heavily in renewables – predominantly wind and solar – reducing the influence of fossil generators on its electricity price by 75% since 2019. Many renewables also offer a differentiated source of domestically produced power, which reinforces energy independence and security while hedging against single-source supply chain shocks.

This is yet another proof point that weather-dependent renewables are grid gamechangers, but it’s important to acknowledge that they cannot address all of the challenges we are trying to solve in the UK. We need to keep investing in the wider system.

A high-renewables grid: managing variability with flexibility

Not only do weather-dependent renewables support energy security, but they’re now cost competitive with fossil fuels. However, because intermittent renewables are dependent on external forces like wind and sunshine, they need complementary sources of flexibility to keep supply and demand balanced in real time to address:

  • Oversupply and curtailment. When the sun is shining and the wind is blowing at full force, energy generation sometimes exceeds demand and/or grid capacity limitations. As a result, the UK spends more than £1 billion annually on curtailment, where the government pays generators to reduce or turn off output during these periods.
  • Undersupply and “Dunkelflaute” risk. The weather patterns that hinder wind and solar often offset each other, but sometimes both can falter at the same time. This occurrence – referred to via the German term “Dunkelflaute” – is more likely to occur in the winter, resulting in supply drops right when demand to heat and power homes is at its highest.
  • Day-to-day swings. In a typical day, intermittent renewables have periods of high and low production. At the same time, demand also has high and low periods. These supply low points often correlate with periods of high demand; for example, as solar generation falls away with the sunset, at-home lighting and appliance usage ramps up. This can result in grid strain and higher energy prices during the times when power is needed most but renewables are less available.

The “Duck Curve” is an industry term that refers to the shape created by the peaks and troughs of contrasting energy demand and intermittent renewable energy supply. The chart above visualizes the typical “duck” shape: a high morning peak (the tail), a deep midday dip (the belly) caused by record solar, and a steep evening ramp (the neck) as the sun sets and household demand spikes.

From national security to data security, the UK relies on consistent access to responsible, affordable power. Managing these swings is an integration challenge – not a reason to slow renewables. It’s a reason to accelerate the tools that make a high-renewables grid work to solve inefficiencies and unpredictability that can undermine the system, particularly during times of stress.

Balancing – not compensating for – intermittent volatility

Baseload generation is another key ingredient to stabilise the grid, helping to compensate for these supply swings. While this foundational support has traditionally been supplied through fossil fuels like coal, the UK has moved to more responsible alternatives like natural gas and sustainable biomass to anchor grid fluctuations.

Baseload generation supports grid stability, and weather dependent renewables are also essential but together they still cannot directly address when clean power is produced at the “wrong” time or the “wrong” place. This is where energy storage steps in.

Energy storage, including batteries, pumped hydro, thermal, and chemical solutions, complements intermittent power generation. These technologies can capture excess clean energy when generation is high and deploy it when supply is low, balancing supply and demand and helping flatten the duck curve. Energy storage solutions can extend the benefits of clean power generation and supply, meeting peak demand even when they’re not actively generating power, all while reducing reliance on baseload generation.

The UK plans to double its energy storage by 2030, and Drax is investing in new battery storage projects in the UK accordingly. Building from Drax’s existing long-term hydro storage assets, the company is investing in new projects in the UK to bolster its battery storage portfolio and improve energy security.

Looking to the future, long-duration energy storage (LDES) batteries also have a key role to play. Current economic and market structures favour lithium-ion-based short-term batteries, but it’s only a matter of time until long-term battery technologies become more efficient and affordable, and the rate of adoption is expected to grow exponentially as a result.

Recent geopolitical conflicts have reiterated the importance of a diversified, balanced energy system. Nations that adapt toward a system built on flexible generation and storage – designed to deliver reliability, affordability, and sustainability while insulating against future shocks – will have a clear advantage, both today and in years to come. We believe there is no better time than now to bet on batteries as part of the UK’s evolution to a more flexible energy system.

Why the energy transition demands a new playbook

1 June 2026

Opinion

During the last bank holiday weekend, as Britain basked in the sunshine, the national grid quietly made history. Demand plummeted to an all-time low of just 12.6GW – roughly the average daily demand of the Philippines. This was nearly four times less than we consumed on a cold, dark Thursday evening in January when the nation cranked up the heating and turned on the kettle. 

Seasonal demand swings are nothing new, and for decades have proved a rule that traditional, dispatchable assets like Drax Power Station are the backbone of our energy security. But in this week of warm weather and unprecedented low demand, solar has generated as much as half of the power Britain consumed – an unthinkable achievement ten years ago.  

Intermittent wind and solar, battery storage, electric vehicles and AI are changing our energy system profoundly and in real time. How government, the system operator and companies like Drax manage this change can be measured not in the millions but in the billions of pounds of difference to the British economy every year.  

At Drax our mission has always been to deliver what the country needs. For over sixty years, our assets have provided secure electricity to millions of the UK’s households and businesses. When climate change became a national imperative, we did what many thought impossible and transformed Western Europe’s largest coal fired power station into Britain’s largest single source of renewable electricity. Today, we are once more investing to deliver in the national interest. 

Our recommended offer for Bluefield Solar Income Fund is a key moment for our business and its next phase. This would be the largest deal in our history, and with BESS and OCGT development sites included, our renewable generation business and flexible generation assets combined will have a larger power capacity of over 3GW than Drax Power Station’s 2.6GW for the first time.

Potentially adding around 900MW of solar and wind with another 2.9GW pipeline of development, including JVs, into the Drax portfolio could mean we are able to keep the lights on whether it is a baking hot bank holiday or a damp and dreary January. And critically the cost of power generated by solar and wind is not impacted by the ongoing situation in the Strait of Hormuz. 

We’re building a diverse portfolio of hydro, batteries, gas, and now potentially wind and solar alongside a trading capability that will enable us to help deliver the UK’s energy security efficiently and affordably. We’re proud to have been at the heart of Britain’s energy system for sixty years, and we’re investing in and evolving our business now to ensure we continue to deliver what the country needs for decades to come. 

Please find the full announcement of the recommended acquisition of BSIF through the following link: https://polaris.brighterir.com/public/drax_group/news/rns/story/r7kk2zw

Commissioning of First OCGT Plant

29 May 2026

News

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

How biomass delivers system stability in an uncertain energy landscape

14 May 2026

Opinion

This article first appeared in Bioenergy Insight.

The energy landscape has fundamentally shifted over the past five years. What began as a singular focus on decarbonisation has evolved into a more complex challenge balancing climate goals with energy security, reliability and the explosive growth in power demand from artificial intelligence and data centres. For Ross McKenzie, chief sustainability officer at Drax Group, this transformation has reinforced a central thesis: that sustainable energy systems require more than just weather-dependent renewables to succeed.

‘A resilient energy mix is one that can absorb shocks without compromising reliability, affordability or sustainability,’ McKenzie explains. ‘In practice, that means balancing three complementary technology groups rather than betting everything on a single approach.’

Those three pillars, according to McKenzie, are weatherdependent renewables like wind and solar; flexible, dispatchable generation including sustainable biomass; and energy storage across multiple technologies from batteries to pumped hydro.

It’s a framework that positions biomass as a strategic asset for grid stability, rather than just a carbon-neutral fuel source. This perspective is gaining traction as power systems grapple with the reliability challenges of high renewable penetration.

The flexibility imperative

Wind and solar now comprise 35-40% of UK electricity generation and around 17% in the US, with further growth expected. However, their weather-dependent nature creates what McKenzie describes as ‘structural challenges’ during extended low-wind, low-solar periods.

‘Biomass is often assessed through the lens of carbon, land-use and deforestation, and that is an important part of the picture,’ he says. ‘But its system value is also significant. As a firm, flexible renewable source it can generate when wind and solar cannot.’

This dispatchability distinguishes biomass from other renewable sources in crucial ways. Unlike wind turbines that idle when the wind drops or solar panels that produce nothing after sunset, biomass plants can ramp up or down on demand, operating across both baseload and peak requirements to maintain grid balance.

‘As grids incorporate more intermittent renewables, extended low-wind and low-solar periods become a structural challenge,’ McKenzie notes. ‘Sustainable biomass can operate across baseload and peak demand to help keep the system balanced and secure, without adding fossil carbon to the atmosphere.’

This capability becomes increasingly valuable as renewable penetration grows. The more wind and solar capacity connects to the grid, the more critical becomes the need for flexible backup generation that can respond quickly when conditions change.

Geopolitics reshapes the conversation

‘Recent geopolitical disruption and supply chain volatility have reinforced the importance of energy security and affordability alongside decarbonisation,’ McKenzie continues. ‘That has sharpened the focus on the risks of overdependence on any single fuel source, and on the value of resilient, diversified systems.’

The result is a more nuanced policy conversation that recognises biomass not only for its decarbonisation potential but as what McKenzie calls ‘a strategic asset that can provide firm capacity and support system stability.’

In the UK and Europe, this translates into clearer emphasis on diversified low-carbon generation combining both intermittent and dispatchable sources. In the US, biomass discussions increasingly focus on strengthening domestic supply chains and supporting allies through energy exports.

‘Overall, policymakers are prioritising systems that can absorb shocks and maintain stability and predictable costs,’ McKenzie says. ‘Which elevates the role of technologies that deliver both flexibility and security.’

For Drax specifically, this shift validates its North American biomass supply chain strategy. ‘That diversification supports more stable fuel costs for Drax Power Station in the UK than a system reliant on more volatile international gas markets, while continuing to support sustainability objectives,’ McKenzie explains.

The AI factor

The emergence of AI and data centres as major electricity consumers adds another dimension to energy planning. Hyperscale companies increasingly seek 24/7 clean power solutions to meet ambitious sustainability commitments whilst ensuring uninterrupted operations.

‘Many major tech companies have set ambitious clean energy targets and are increasingly looking for firm, dispatchable generation to complement wind and solar.’

This demand profile strengthens the case for balanced generation portfolios that combine weatherdependent renewables with flexible sources and storage. Unlike traditional industrial consumers that might adjust operations based on electricity availability, data centres require constant power supply regardless of weather conditions.

‘That strengthens the case for a balanced portfolio combining renewables with flexible generation and storage to deliver reliable power when the country needs it,’ McKenzie notes.

System thinking

Drax’s approach reflects what McKenzie describes as ‘system thinking’ — viewing different technologies as complementary rather than competing assets. The company operates biomass, hydro, pumped hydro storage and is investing in battery storage, seeing each technology as contributing different capabilities to overall system stability.

‘Each contributes at different timescales providing firm capacity, flexibility and fast response, so the overall portfolio can balance variability, respond to demand in real time and support grid stability as intermittent renewable generation increases.’

This portfolio approach addresses what McKenzie characterises as the energy trilemma: delivering reliability, affordability and decarbonisation simultaneously rather than trading one objective against another.

‘In practice, energy systems must deliver reliability, affordability and decarbonisation together,’ he says. ‘A resilient approach is to build a diversified portfolio of assets so the system can manage variability and remain secure, even during periods of geopolitical disruption or supply chain volatility.’

The BECCS dimension

Looking forward, McKenzie sees Bioenergy with Carbon Capture and Storage (BECCS) as potentially transformative for biomass’s role in energy systems. BECCS combines renewable electricity generation with permanent carbon removal — a dual function that could position biomass at the centre of net-zero strategies.

‘As net zero pathways become more defined, it is increasingly clear that carbon removals, including BECCS and other biogenic solutions, can play an important role for addressing residual emissions from hard-toabate sectors,’ he says.

The UK appears wellpositioned to develop BECCS at scale, given existing biomass infrastructure and access to carbon dioxide storage capacity in the North Sea. However, McKenzie emphasises that realising this potential requires coordinated infrastructure development.

‘The UK has many of the right ingredients to progress BECCS,’ he says. ‘Realising that potential at scale will depend on turning ambition into delivery, through CO2 transport and storage networks, investable market frameworks and long-term policy support.’

If those enabling conditions come together, McKenzie sees BECCS moving ‘from a promising option to a core part of the UK’s infrastructure toolkit — supporting energy security while delivering durable carbon removals.’

Balancing act

Ultimately, McKenzie’s vision for biomass reflects broader changes in how energy systems are conceived and managed. The focus has shifted from individual technologies competing for market share to integrated systems delivering multiple objectives simultaneously.

‘The objective is not a trade-off, but a balanced system that delivers immediate security of supply while staying aligned with a credible long-term pathway to net-zero,’ he concludes.

The UK’s energy trilemma requires more than price reform

27 April 2026

Opinion

This article first appeared in Energy Voice. 

The UK Government’s move to explore breaking the link between gas and electricity prices reflects a growing recognition that the current system is exposing consumers and businesses to unnecessary volatility. While reducing exposure to gas-driven pricing is an important step, it will not single-handedly remove the UK’s vulnerability to global markets if the system remains unbalanced. 

Historically, the UK has prioritised generation sources that offer ample supply and low cost, such as coal and gas. While coal has been phased out, and renewables like wind, solar, and biomass play a larger role than ever, the UK has become increasingly dependent on gas generation as a source of energy security. 

Recently, the energy debate in the UK has become unhelpfully polarised between those who believe we are either too dependent on gas or not dependent enough. While both arguments have merit, they miss the point entirely. The global energy transition has unlocked new technologies that make balancing the trilemma – affordability, security, and sustainability – possible for the first time. 

There are four main ways the UK benefits from these new technologies: 

  • Energy security and sovereignty: A growing number of generation technologies are scaling, meaning Britain can diversify its portfolio to produce and store a greater share of its power domestically, reinforcing energy independence. This in turn helps to protect consumers from geopolitical price shocks. 
  • Technological innovation and modernisation: Technologies like AI are expected to transform industries from healthcare to defence, finance and energy. Those able to power this demand stand to disproportionately benefit from them as they scale. 
  • Economic benefits and growth: Reliable, affordable energy is increasingly critical to attracting investment across sectors such as data centres and manufacturing, and a diversified system also helps stabilise prices. 
  • Environmental survival and sustainability: Decarbonising the system remains essential. By shifting to a mix of low-impact generation technologies, the UK can reduce emissions while maintaining reliability. 

Acknowledging the challenges 

The path ahead is exciting but also filled with obstacles, some known and many not. Political and economic uncertainty remains a key barrier to a balanced energy system. Investment decisions depend on confidence that projects will deliver stable returns. Volatility in inflation, regulation and policy increases risk and slows investment. 

As policymakers consider reforms to electricity pricing and market structures, clarity and predictability will be crucial. Signals that point towards more stable, contract-based approaches to generation can help unlock investment, but only if they are consistent and long-term. 

In the UK, where energy prices are among the highest in the world, limited energy storage and dependence on gas means shocks to oil and gas markets can spike energy costs. For example, since the war in Ukraine first choked off gas supplies to Europe, the UK has spent an additional £90 billion on gas – approximately £2,000 per adult.  

Closer to home, another influence can stall vital energy projects: community concerns. Companies should listen carefully to community leaders, communicate project benefits and stages clearly and consistently, and follow through on commitments to foster trust. Community support is essential to reach a final investment decision; if trust can’t be established in enough areas, it becomes difficult to meet future market needs.  

Another barrier is increased competition. While AI offers a potential pathway to a bright future, that same promise also lures away finite investable cash from vital industries including the energy sector. At the same time, supply chain constraints are increasing costs and delaying delivery. 

Compelling opportunities for the energy industry 

At the same time, there are clear opportunities for our industry to build an energy system that works for our future. 

The AI arms race hinges on access to power, with both the private and public sectors racing to secure supply. A growing mandate for companies to BYOP (bring your own power) provides increased autonomy for hyperscalers to choose how they provide the electricity for AI, and it offers a path forward that doesn’t require taxpayers to shoulder the financial burden. This private sector demand is already accelerating investment in new generation.  

It’s also becoming increasingly clear that nations need to fortify their energy security. Access to stable power is a game-changing differentiator to attract future economic opportunity, and strong energy independence and resilience can insulate against market swings – like those from international conflicts. 

Wind, solar, hydro, sustainable biomass, and geothermal diversify national energy portfolios, supporting reliability and price stability during supply chain disruptions. They can often be produced and/or stored domestically as well, further limiting exposure. 

Identifying responsible solutions 

To reach the full potential of these defining opportunities, the UK needs the right mix of technologies. A more balanced system – combining different technologies that can provide both low-carbon and reliable, dispatchable power – will be essential to making this work in practice. 

This includes weather-dependent renewables, such as wind and solar; flexible generation, such as open-cycle gas turbines (OCGTs) and biomass, to manage intermittency; and battery storage to manage peaks in demand and improve system stability. 

Market reforms can support this transition, but they will only succeed if they are matched by a system that is built for resilience, not just efficiency. 

As Ed Miliband set out, expanding clean, domestically produced power will be central to building a more secure energy system. It offers greater stability, control and a path to energy sovereignty. 

Making this a reality will depend on how the system is designed – combining renewables with flexible and dispatchable generation to ensure reliability. The direction is clear; the challenge now is delivery.