Drax is the subsidy show that goes on and on | Nils Pratley

Government cranks handle again for group owning Yorkshire power plant because cheaper generating capacity not in placeUK halves subsidies for Drax and says it must use 100% sustainable woodSurprise, surprise, a mighty ?7bn of subsidies since 2012 have not been enough to get Drax to stand on its own feet. More bungs are required to keep the wood fires burning at the enormous power plant in North Yorkshire - this time an estimated ?1.8bn from 2027-31.The energy minister Michael Shanks at least sounded embarrassed. He railed against the "unacceptably large profits" Drax has made, said past subsidy arrangements "did not deliver a good enough deal for bill payers" and vowed that that the definition of a "sustainable" wood pellet would be tightened. But the bottom line is that the government has agreed to crank the subsidy handle once again, just at a slower rate. Continue reading...