Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  Drax Group Plc    DRX   GB00B1VNSX38

DRAX GROUP PLC (DRX)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

British power capacity auction fails to attract gas projects

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/09/2018 | 03:02pm CET

LONDON (Reuters) - Britain's latest auction for back-up electricity cleared well below expectations but without many new gas projects securing agreements which are thought to be needed to help bridge the gap when coal and nuclear plants come offline next decade.

Thursday's auction for 2021/22 supply cleared at 8.40 pounds ($11.71) per kilowatt (kW) per year, National Grid's website showed, well below the 15 to 25 pounds range which analysts had forecast.

In December 2016, a similar auction for supply four years in advance (2020/21) cleared at 22.50 pounds/kW/year.

Out of the 50.4 GW of capacity agreements awarded, 48.4 GW was existing capacity and interconnectors. Medium and large-sized new gas projects exited the auction above the clearing price.

"The auctions for the next three years will depend entirely on the government's view on how quickly and uniformly they want their targeted new gas build of 3-7.5 GW to be built to plug the gap from coal closures by 2025," said analysts at Bernstein.

Britain began capacity auctions in 2014, looking to head off future power shortages as coal plants close and as low electricity prices dissuade investors from building new capacity.

Plant owners are paid to make available back-up power at short notice.

Some 8.3 GW of existing coal capacity withdrew from the auction, National Grid data showed.

Bernstein analysts said around half of that could close down by October 2019 as the plants have no capacity market agreements after that time.

WINNERS AND LOSERS

The 470-megawatt North Killingholme gas-fired power station project being developed by C.GEN Killingholme Ltd, failed to secure an agreement, the auction results showed.

SSE (>> Scottish and Southern Energy) secured agreements for almost 3.4 GW of gas-fired and embedded power generation plants and a 806 megawatt hydro electric and pumped storage plant.

However, it did not secure agreements for a proposed new-build combined cycle gas turbine plant, Keadby 2.

It also did not get one for its coal-fired power station Fiddler's Ferry but says there is no immediate impact as three of the four units there have agreements for supply until 2019.

"SSE will consult with major stakeholders and make a final decision about the future of Fiddler’s Ferry beyond the station’s capacity contract commitments, which run to September 2019," the company said in a statement.

Drax Group (>> Drax Group Plc) said it secured capacity market agreements to provide more than 1.2 GW of capacity from its two existing coal units at its Yorkshire coal and biomass plant.

Drax said two new open-cycle gas turbine (OCGT) projects participated in the auction but exited above the clearing price.

Drax expects these projects to participate in the next auction for supply four years ahead.

EDF Energy said it got one-year agreements for 2021-2022 for nuclear power plants Dungeness B, Sizewell B, Hinkley Point B, Heysham 1, Heysham 2, Hartlepool, Torness and Hunterston B and its West Burton B CCGT plant.

A record amount of capacity, almost 10 percent, was secured by interconnectors which transport power to and from Britain and Europe.

Three existing power links, connecting Britain with France, the Netherlands and Northern Ireland won a total of around 2.4 GW.

Three links yet to be built - one connecting Britain with Belgium and two new links with France including Eurotunnel Group’s Eleclink - won contracts totalling 2.2 GW.

(Additional reporting by Swati Verma, Vijaykumar Vedala and Susanna Twidale; editing by Alexander Smith and Jason Neely)

By Nina Chestney

Valeurs citées dans l'article
ChangeLast1st jan.
ELECTRICITÉ DE FRANCE -3.34% 10.43 Real-time Quote.-2.78%
NATIONAL GRID PLC 0.08% 748 Delayed Quote.-15.34%
SCOTTISH AND SOUTHERN ENERGY 0.96% 1213 Delayed Quote.-9.96%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on DRAX GROUP PLC
01:36aDRAX : 21 February 2018 - Britain now produces enough renewable electricity to p..
PU
02/20DRAX : 20 February 2018 - Notice of Preliminary Results announcement, presentati..
PU
02/14DRAX : 14 February 2018 - Brothers claim top prizes at apprenticeship awards
PU
02/13DRAX : 13 February 2018 - Northern Powerhouse Minister and Selby MP visit Drax t..
PU
02/09British power capacity auction fails to attract gas projects
RE
02/09DRAX : Capacity Market Agreements for Existing Coal Units
PU
02/03DRAX : 3 February 2018 - Drax Power CEO Andy Koss responds to Skipton to Colne r..
PU
02/01DRAX : 1 February 2018 - Drax Power CEO Andy Koss responds to ‘Educating t..
PU
01/17DRAX : British power producer Drax to complete fourth biomass unit in second hal..
RE
01/17DRAX : 17 January 2018 - Fourth biomass unit conversion
PU
More news
News from SeekingAlpha
2017Drax Group (DRXGF) Investor Presentation - Slideshow 
2016Semi Year SNAPS - Stocks, Knocks, And Shocks At Half Year 2016 
2016New Year NAPS - Top Stocks For 2016 And A Few Revelations 
2015DRAX GROUP : An Asymmetric Bet On A Significantly Undervalued Utility 
Financials ( GBP)
Sales 2017 3 616 M
EBIT 2017 36,8 M
Net income 2017 -35,8 M
Debt 2017 466 M
Yield 2017 5,28%
P/E ratio 2017 -
P/E ratio 2018 28,61
EV / Sales 2017 0,39x
EV / Sales 2018 0,36x
Capitalization 949 M
Chart DRAX GROUP PLC
Duration : Period :
Drax Group Plc Technical Analysis Chart | DRX | GB00B1VNSX38 | 4-Traders
Technical analysis trends DRAX GROUP PLC
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 12
Average target price 3,48  GBP
Spread / Average Target 49%
EPS Revisions
Managers
NameTitle
Dwight Daniel William Gardiner Chief Executive Officer & Executive Director
Philip Gotsall Cox Chairman
Den G. Jones Chief Financial Officer
Andrew Koss Director
David Clive Lindsell Senior Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
DRAX GROUP PLC-15.00%1 324
NTPC LTD-7.60%20 815
ZHEJIANG ZHENENG ELECTRIC POWER CO LTD3.38%11 813
UNIPER SE-8.38%11 009
ELECTRIC POWER DEVELOPMENT CO., LTD.-9.43%4 807
YUNIPRO PAO--.--%3 008