Mon, 10 Feb 2025

Mon, 10 Feb 2025 Subsidies halved for controversial Drax power station

The government has agreed a new subsidy arrangement with the controversial wood-burning Drax power station in north Yorkshire.

* The government has agreed a new funding arrangement with Drax power station that will cut subsidies in half.
* Drax currently receives nearly £1 billion per year in subsidies, which is predicted to fall to £470m under the new deal.
* The agreement will run from 2027 to 2031 and will see Drax used only as a backup to cheaper renewable sources of power.
* When there's lots of wind and solar, Drax won't run at all, reducing its emissions.
* A "clawback mechanism" in the new arrangement is designed to stop Drax making excessive profits if electricity prices rise steeply.
* The new deal requires 100% of wood pellets burned by Drax to be "sustainably sourced", with a ban on material from primary and old-growth forests.
* Critics, including Greenpeace, have called the deal a "dirty compromise" and argue that it does not go far enough in reducing emissions.
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