Drax completes £702m deal with Iberdrola

The firm has bought the Spanish Energy company’s portfolio of flexible, low carbon and renewable assets

The Big Zero report

Drax has completed a deal to buy Iberdrola’s portfolio of flexible, low carbon and renewable assets for the cost of £702 million.

The new power stations will increase Drax’s electricity generation capacity by 60%, giving it enough power to supply the equivalent of more than 8.3 million homes.

The deal adds 2.6GW of new capacity to Drax’s asset portfolio – the package is made up of a 440MW pumped storage hydro plant, two run-of-river hydro sites making up 126MW and a biomass-from-waste facility, all of which are located in Scotland.

The acquisition, which was formally completed on the 31st of December 2018, includes four Combined Cycle Gas Turbine stations in England.

The organisation is now the UK’s fifth largest non-domestic energy supplier.

Will Gardiner, CEO of the Drax Group, said: “We are investing in Great Britain by acquiring this portfolio of flexible, low carbon and renewable generation assets.

“They complement our existing activities by providing very flexible power which not only keeps the lights on for thousands of households but also provides crucial system support services to the grid, maintaining secure supplies and enabling more renewables like wind and solar onto the system.”

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