Drax Group PLC has announced that it has provisionally secured agreements in the T-4 auction for existing pumped storage and hydro assets, as well as for the refurbishment of Cruachan Power Station units 3 and 4. The company has secured agreements to provide a total of 462MW of capacity from its pumped storage and hydro assets, with income of around £28 million in the delivery period of October 2027 to September 2028. Additionally, Drax has secured agreements for the refurbishment of Cruachan Power Station units 3 and 4, providing a total of 240MW of capacity for the delivery period of October 2027 to September 2042, with income of around £221 million in that period. The capital cost of this development is approximately £80 million.
The agreements are at a price of £65/kW, with payments indexed to UK CPI. The company's existing agreements also extend to September 2027. The pumped storage and hydro assets include Cruachan Pumped Storage (units 1 and 2), the Galloway hydro scheme (Tongland, Kendoon, and Glenlee), and three small legacy gas turbines at Drax Power Station. The refurbishment of units 3 and 4 at Cruachan Power Station will increase its capacity to 480MW.
For further information, Drax Group PLC has provided contact details for investor relations and external communications. The company's website is also available for additional information.
This news highlights Drax Group PLC's successful provisional securing of capacity market agreements for its pumped storage and hydro assets, as well as the refurbishment of Cruachan Power Station units 3 and 4. These agreements are expected to contribute significantly to the company's capacity and income in the coming years.