Cruachan Expansion project update
Cruachan Expansion remains a strategic development option for Drax which is closely aligned with the Group’s FlexGen strategy and energy system needs.
The project has been developed significantly by Drax since our acquisition of Scottish Power’s hydro assets in 2019, including gaining the relevant development consents, grid connection agreement land rights, an extensive series of ground investigations and development of the project’s design.
However, due to a significant rise in the capital costs associated with the project we will not be entering the forthcoming Cap & Floor application process while we evaluate the investment case for the project.
We are continuing to engage with DESNZ, Ofgem, and other stakeholders about a policy environment which could sufficiently de-risk and incentivise investment in such projects.
Drax has begun exploring further enhancements to the Cruachan site, which could support both the existing facility and economics of the expansion while continuing to provide essential dispatchable renewable power.
Drax sees a strong future for our hydro assets as part of our FlexGen strategy to meet the energy system’s growing need for dispatchable power – we are investing around £100m in refurbishing both the existing Cruachan Power Station and our Glenlee site in Galloway.
