Low-carbon generation

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The Drax debacle undermines EMR

The Drax debacle undermines EMR

UK energy took another step towards becoming uninvestable this week with the government’s surprise decision to drop one of Drax’s two biomass units off the list for an early support contract (see p15). It was such an unexpected blow that Drax is considering legal action against the government. In one day, the decision wiped 13.5 per cent – £400 million – off the company’s valuation.

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