Drax has completed its £702m acquisition of gas, pumped storage and hydro assets from Scottish Power parent company Iberdrola.
The deal was announced in October but faced a hurdle when the Capacity Market was suspended. Drax and Iberdrola then agreed a risk share arrangement to mitigate exposure to uncertainty about Capacity Market payments – with around £150m at stake under original deal terms.
The acquisition adds 2.6GW to Drax’s capacity while diversifying its biomass-heavy operation.
Most (2GW) of the assets are gas-fired power stations, plus the 440MW Cruachan pumped storage hydro plant in Argyll, and 126MW of run-of-river hydro locations at Galloway and Lanark. It also includes the Daldowie treatment plant, which turns wastewater sludge into biomass fuel pellets.