UK Cuts Drax Subsidies and Enforces Stricter Sustainability Standards

The government halves financial support for the biomass power station, mandates 100% sustainable wood use, and limits its role in electricity generation.

The UK government has announced a new agreement with Drax, halving subsidies for the biomass power station from 2027 to 2031, saving consumers an estimated £170 million annually.
Drax will transition to generating electricity only when necessary, reducing its operational time to 22-27% and prioritizing wind and solar energy when available.
The agreement requires Drax to use 100% sustainable wood sources, up from the current 70%, with penalties for non-compliance and a ban on using wood from primary and old-growth forests.
Critics, including environmental groups, argue that subsidizing biomass burning is environmentally harmful, while proponents highlight its role in energy security and system cost savings compared to fossil fuels.
The government is also exploring technologies like carbon capture to decarbonize biomass and meet its goal of a net-zero electricity grid by 2030.