In response to increased pressure on European gas markets and concerns about UK supply of electricity this winter, the UK Government has asked Drax to extend the life of its two coal-fired units to March 2023.
As a result, Drax has agreed with National Grid to provide a “winter contingency” service to the UK power system from October 2022 until the end of March 2023. The units will not generate commercially for the duration of the agreement and will only operate if and when instructed to do so by National Grid. Under the terms of the agreement, Drax will be paid a fee for the service and compensated for costs incurred with operating the coal-fired units.
Drax ended commercial operations on its two remaining coal-fired generation units in March 2021, and formal closure was planned for September 2022.