Drax and Double Drax Part 2
Following the controversial selection of recipients for the first round of enhanced subsidy packages under the Contracts for Differences scheme for new renewable generation and the apparent largesse of the government in the level of the awards made.
Together with Drax’s legal challenge to missing out on the promised £1.3bn subsidy and the decision by the High Court to render DECC’s decision as inadmissible, it comes as little surprise that DECC have announced that Drax’s application for a third unit’s conversion to biomass has been granted after all.
The furore hasn’t ended though, DECC are now pursuing an appeal of the High Court’s decision even though they have now backtracked on their initial decision and even then any award needs to be ratified by the EU and their rules of state aid.
Whilst this permission has been forthcoming for the five offshore wind projects that were originally awarded the subsidy there remains a question mark over Drax’s and biomass’ ratification.
A right royal mess this is turning out to be.