Drax had thought it was favourite to get two ‘contracts for difference’, designed to encourage investment in renewables
It is hard to keep up with the twists in the tale of Drax’s attempts to win fixed-price government subsidies to help convert two of its dirty coal-fired units to run on biomass pellets.
Short version: the company thought it was nailed-on favourite to get two so-called contracts for difference, which are designed to encourage investment in renewables by guaranteeing prices on generated electricity for 15 years. It applied for two units and they were ranked joint first in the provisional ranking of projects last year.