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(Alliance News) - Drax Group PLC said Monday it has secured agreements to provide a total of 2,562 megawatts of capacity from the T-3 auction.
The capacity will come from the company's existing gas, pumped storage and hydro assets.
The capacity market agreements cover the period from October 2022 to September 2023, priced at GBP6.44 per kilowatt, which is worth a total of GBP15 million.
The power generation firm said it did not accept agreements for its two coal units, and will now look at options for these particular assets, which will involve discussions with National Grid PLC, the UK energy regulator Ofgem and the UK Government.
"A new-build CCGT at Damhead Creek and four new-build Open Cycle Gas Turbine projects participated in the auction but exited above the clearing price and did not accept agreements," Drax added.
The company will now look towards the T-4 auction, expected to take place in March, which covers the delivery period from October 2023. Drax noted it does not expect to sign a capacity agreement for its coal assets in the T-4 auction.
Shares in Drax were 3.0% higher in London on Monday morning at 280.20 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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