MPs question value of billions in subsidies granted to Drax power plant

A government spending watchdog has questioned the value of the multi-billion pound subsidies granted to the Drax power plant in North Yorkshire – and said that plans to hand over billions more may not represent value for money. The government has provided about £22bn of public money to businesses and households that burn biomass pellets as fuel over the past three years, including £6.5bn for the owner of the Drax plant. The power plant, which generates about 5% of the UK’s electricity, is expected receive more than £10bn in renewable energy subsidies between 2015 and the end of 2026 – despite ongoing concerns that wood pellets are not always sustainably sourced. The committee added it was not convinced by the government’s plan to heap a further £2.5bn in subsidies on the Drax plant by extending its support beyond the 2026 deadline for a further five years while it invests in carbon capture technology. Sir Geoffrey Clifton-Brown, MP and chair of the committee, said: “Billions upon billions of government support has been provided to the biomass sector over the past two decades.