Drax completes £548m acquisition of solar and wind assets
The deal provides Drax with 0.9GW of operating and under construction solar and wind assets, as well as a gross development pipeline of 2.9GW which could be constructed across the next decade. When combined with Drax’s BESS and OCGT development sites, our renewable generation business and flexible generation assets will have a larger combined power capacity of over 3GW than Drax Power Station’s 2.6GW for the first time.
The acquisition will increase the role Drax plays in supporting the UK’s goals of strengthening energy security, keeping power affordable and accelerating decarbonisation. Drax expects the deal to be backed by strong cash generation from BSIF’s existing operational portfolio, disciplined capital investment, and attractive returns for Drax shareholders.
Drax Group CEO, Will Gardiner, said: “This is a transformational moment for Drax. By adding solar and wind to our portfolio for the first time, we are broadening the role we can play in supporting the UK’s energy security and helping to decarbonise the power system.
“As demand for electricity grows, the UK will need more renewable power, alongside the flexible generation and system support needed to keep the grid secure. This acquisition strengthens our platform for growth and will help us deliver long-term value for our shareholders.
“We’re proud to have been at the heart of Britain’s energy system for sixty years, and we’re investing in and evolving our business now to ensure we continue to deliver what the country needs for decades to come.”
Demand for electricity in the UK is expected to grow significantly in the years ahead, driven by new technologies such as AI and data centres, as well as the electrification of transport and industry. Drax believes the addition of solar and wind assets will strengthen its ability to support UK energy security, help decarbonise the power system and create long-term value for the business.
