Drax has delivered full year results ahead of expectations with a year of record generation representing 6% of UK power and 11% of UK renewable generation. The recent progress in flexible generation with acquisitions and tolling agreements of battery energy storage systems fits well with the Flexitricity acquisition and we see the GW scale target as both achievable and able to add considerable value. The company continues to develop options for a 1.2GW data centre with an initial 100MW target from 2027. The balance sheet has strengthened and the £3bn cash generation target to 2031 gives Drax the firepower to take advantage of these and opportunities beyond.
