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Drax Power Station: Subsidies

Asked by Vikki SladeLiberal DemocratDepartment for Energy Security and Net ZeroTabled Answered 4 March 2025UIN 33334

The question

To ask the Secretary of State for Energy Security and Net Zero, if he will make an assessment of the potential merits of pausing the current government subsidies for Drax’s power generation until the Public Accounts Committee reports on its inquiry on Government support for biomass.

Answered by Michael Shanks

The Government has agreed new Heads of Terms with Drax for short term support from 2027 to 2031. It halves the subsidy paid to Drax, strengthens the sustainability arrangements to require 100% sustainable biomass, and reduces Drax’s generation so that it only operates when absolutely necessary on the system.

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