British solar container power station subsidy announcement

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DRAX power station''s state subsidies will be halved once the current arrangement expires in April 2027, the UK government announced on

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British solar container power station subsidy announcement

6 FAQs about [British solar container power station subsidy announcement]

What will the new biomass subsidy mean for the UK?

The UK government recently announced the heads of terms of a new subsidy for large-scale biomass generation at Drax Power Station from 2027-31. From April 2027, the new subsidy package should see subsidies fall to around £1.2mn per day, with generation falling by 55% to provide just 1.8% of UK electricity supply in 2030.

What will the new UK electricity subsidy package mean for the UK?

From April 2027, the new subsidy package should see subsidies fall to around £1.2mn per day, with generation falling by 55% to provide just 1.8% of UK electricity supply in 2030. Emissions will fall to around 5.8 MtCO2e annually, though Drax will remain the UK’s largest emitting power station.

When will Drax Power Station's state subsidies be halved?

DRAX power station’s state subsidies will be halved once the current arrangement expires in April 2027, the UK government announced on Monday. The wood-fired electricity generator in North Yorkshire, England, will receive subsidies until 2031.

Will the UK government support biomass generators in 2027 to 2031?

In February 2025 the UK government announced a decision on the level of future support for biomass generators for 2027 to 2031. This report assesses the impact of the new reduced subsidy package on large-scale biomass generators, as well as the benefits to consumers.

Will the UK halve Drax subsidies in 2027?

The UK government is to halve the level of subsidies paid to Drax for its biomass power plant in Selby, North Yorkshire, from 2027. This is the date when the current support mechanism ends. Stricter sustainable sourcing requirements for the plant’s feedstock of wood pellets are also to be implemented.

Will a new subsidy save £170m from electricity bills?

The government claims the new subsidy arrangement will save £170m (US$210.9m) from electricity bills compared to the cost of investing in new gas power plants.

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