Energy bill savings promised as Drax subsidies cut The contribution to energy bills from a government deal with a biomass electricity provider will fall in the coming years as subsidies are cut under a new agreement.
He added: "Under this proposed agreement, Drax can step in to increase generation when there is not enough electricity, helping to avoid the need to burn more gas or import power from Europe, and when there is too much electricity on the UK grid, Drax can turn down and help to balance the system.
"Analysis from Baringa indicates the proposed agreement will result in a £1.6-3.1 billion reduction in electricity system costs, versus the construction of new fossil fuel power stations, and Government has concluded today that Drax offers the lowest cost option for bill payers during this period.".
"The size, flexibility and location of the power station makes it important for UK energy security and the proposed agreement helps protect the jobs and skills of today and the future, creating options for billions of pounds of investment in growth across Britain, including the development of large-scale carbon removals and data centres.
Group chief executive Will Gardiner said: "The Government's low-carbon dispatchable CfD framework for biomass, announced today, is an investment in UK energy security, which will result in a net saving for consumers and support the delivery of Clean Power 2030.
