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(Alliance News) - Drax Group PLC on Thursday said it has secured agreements to provide power to the UK from existing pumped storage and hydro assets, as well as from new gas turbine projects.
The electrical power station operator based in Selby, England said that as part of the agreements, it will provide a total of 617 megawatts of capacity from its pumped storage and hydro assets. The agreements will be for a delivery period between October 2024 and September 2025 at a price of GBP18 per kilowatt, and are worth GBP10 million throughout the delivery period.
In addition, Drax has signed 15-year agreements for three new 299 megawatts open cycle gas turbine projects at sites in England and Wales. These agreements are set to be for a delivery period between October 2024 and September 2039 at a price of GBP18 per kilowatts, and are worth GBP230 million during the delivery period.
"These assets are intended to operate for short periods of time to meet specific system support needs. As the UK transitions towards a net zero economy, it will become increasingly dependent on wind generation and as such, fast response system support technologies such as these open cycle gas turbines are increasingly important to the energy system as a means to enable more wind to run more often and more securely," said Drax.
The operator added the total capital cost of the projects is between GBP80 million and GBP90 million each, with a build time of around two years. It will now evaluate options for the projects, including their potential sale.
Shares in Drax were down 0.7% at 369.80 pence in London on Thursday.
By Zoe Wickens; zoewickens@alliancenews.com
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