Drax Group has taken commercial control of the 299 MW Hirwaun Power Station in South Wales, the first of three open-cycle gas turbine (OCGT) plants. The fleet, totaling nearly 900 MW, will provide peak power and system support services under Capacity Market agreements through 2039 worth over £260 million.
Drax Group, a British energy company with a portfolio spanning biomass, hydro, and flexible thermal generation, has assumed commercial control of the 299 MW Hirwaun Open Cycle Gas Turbine (OCGT) plant in South Wales. The asset, transferred from developer Metlen Energy & Metals following completion of commissioning, is the first of three near-identical units the company is deploying across England and Wales.
Once all three plants are fully operational, Drax’s OCGT fleet will offer approximately 900 MW of rapid-response capacity. Revenue is underpinned by long-term Capacity Market agreements extending to 2039, collectively worth more than £260 million, the company said in a statement. Central dispatch is managed by Drax, while day-to-day operations and maintenance are handled by Siemens Energy under a service arrangement, contributing to a low fixed-cost base.
Each unit features a clutch mechanism between turbine and generator, enabling synchronous compensator operation without burning gas. In this mode, the plant provides inertia and voltage control, grid services that are increasingly valuable as intermittent renewable penetration rises. The fast-start capability also allows the fleet to meet demand spikes quickly, reducing reliance on carbon-intensive baseload generation and supporting UK energy security.
For investors and energy market participants, the rollout strengthens Drax’s foothold in the growing flexible-generation and ancillary-services segment. The Capacity Market contracts offer revenue visibility through the late 2030s, while the synchronous compensator functionality opens an additional income stream from system-operator contracts. As coal retirements continue and the share of wind and solar expands, assets that can deliver both peaking power and stability services are poised to play a more strategic role in the UK’s evolving electricity market.
About GlobeNewsInfo
GlobeNewsInfo.com is a business news platform providing latest updates on global business developments, projects, and contract opportunities across diverse sectors and regions. The platform is designed to serve as a trusted source of information for companies, investors, and professionals worldwide.