By Mark Williamson Group Business Correspondent
ENERGY giant Drax has underlined its willingness to invest heavily in
developing the portfolio it acquired in Scotland through a £700 million deal.
The head of the company’s generating arm, Andy Koss, said Drax was very
pleased with the performance of the assets concerned. These include a giant
reservoir-based pumped storage system in Argyll, the Lanark and Galloway
hydro-electric facilities on rivers in South West Scotland, and a biomass
fuel plant near Glasgow.
He said the company sees enough potential in the Cruachan pumped storage
facility for it to be prepared to make the massive investment required to
achieve a big increase in capacity at the plant, with the right official
support.
The plans under consideration include one which would involve developing a
new reservoir and turbine hall. The cost would probably run into hundreds
of millions of pounds.
Mr Koss noted Drax directors believe pumped storage could play a key role
in supporting the development of wind power in Scotland while helping
maintain the security of power supplies.
Cruachan can generate enough energy to power 90,000 homes, based on moving
water between a reservoir in the hills and Loch Awe, which lies about 450
yards below.
Excess wind power could be used to pump water from Loch Awe up to the
reservoir.
Power generated at Cruachan could be used to make up for variations in the
amount of energy produced by windfarms.
Mr Koss noted that assets such as pumped storage facilities and run of
river hydro schemes can operate for decades.
Drax generated £36m underlying profit in the six months to June from the
operations acquired from ScottishPower. They include four gas-fired power
stations in England.
It said the integration process is going well. Some 250 Scottish Power
staff members have transferred to Drax.
ScottishPower is focusing its investment on renewable energy generating
facilities and transmission networks.
Drax believes gas fired-plants can play an important role in ensuring
enough energy is available in the UK irrespective of weather conditions.
The group has invested heavily in adapting the giant coal-fired plant in
Yorkshire from which it takes its name to run on wood pellets. The use of
coal is set to be phased out by 2025.
It achieved £138m underlying earnings in the first half, up 35%, from £102m
last time.
0 Comments