LONDON (Alliance News) - Power station owner Drax Group PLC Thursday said that the UK government has provisionally ranked its two projects as the highest amongst qualifying projects for early fixed price long-term contracts, to support the development of low carbon electricity generation.
Drax said that the ranking is an important step in the investment contract award process.
The government introduced "Contracts for Difference" through the electricity market reform package.
Earlier this month, the Government announced that 16 projects, including both Drax units, had met the minimum threshold evaluation criteria for investment contracts under the Final Investment Decision Enabling for Renewables process, and set a budget cap from 2015 to 2021.
"We will now participate in the next stages of this process, which will conclude with the award of Investment Contracts in spring 2014," said Chief Executive Dorothy Thompson in a statement.
Drax shares were trading 3.4% higher at 797.50 pence per share before midday Thursday.
By Rowena Harris-Doughty; email@example.com; @rharrisdoughty
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