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In the News

Should the Drax Power Station subsidy be cut

Graham Watson

24th February 2023

It's remarkable that Drax power station, which has seen its profits double, to £731m in 2022 from £398m the previous year, is still in receipt of huge government subsidies.

However, it earned £837m in subsidies in 2020, £885m in 2021 and £617m in 2022 - so the notion that it's able to increase its dividend by 11.7% to 21p per share it frankly somewhat galling. At the moment, Drax is being subsidised to use biomass, something that doesn't seem to be as environmentally-friendly as it was first purported to be.


Drax Power Station is a large coal and biomass-fired power station located in North Yorkshire, England. It is one of the largest power stations in Europe and the largest single-site renewable generator in the UK, with a total generating capacity of 3,960 megawatts (MW).

The station was built in the 1970s and was originally designed to burn coal. However, in recent years, Drax has been converting its units to burn biomass, including wood pellets and other renewable materials, in an effort to reduce its carbon emissions. This conversion has been part of Drax's strategy to transition to a more sustainable and environmentally friendly energy source.

The Drax Power Station has played a significant role in the UK's energy sector for many years, providing electricity to millions of homes and businesses across the country. However, as the world shifts towards cleaner forms of energy, the future of the power station remains uncertain.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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