Drax turns energy efficiency into a practical investor theme

Drax Group plc

Energy efficiency is a direct way to cut costs, reduce emissions and improve energy resilience.

Drax is applying this approach through community projects and its own operations. Through the Drax Foundation, the company invested more than £1.2 million last year in programmes focused on energy efficiency and fuel poverty. In 2025, 22 schools received LED lighting and/or solar installations, cutting electricity bills by an average of more than 60%.

Lower energy bills can release money for teaching, facilities and pupil support. It also strengthens Drax’s local relationships in communities linked to its business. More than 1,000 households experiencing fuel poverty also received direct financial and practical support, showing how efficiency measures can reduce pressure on vulnerable consumers.

The work fits with the UK’s wider push to put more solar panels on public buildings, including schools and colleges. Drax’s projects show how relatively simple upgrades can deliver fast savings while improving awareness of energy use among pupils and staff.

Drax is also using the same logic inside its own asset base. In February 2025, the company approved an £850,000 investment to install solar panels across its Lanark and Galloway hydro sites. Once complete, the panels are expected to generate around 480MWh of renewable electricity. Most of that power will be used on site, reducing electricity drawn from the grid, with surplus power exported.

The project is expected to cut annual Scope 2 emissions across eight hydro facilities by around 500 tonnes of CO₂e. It also shows how solar and hydro can work together. Solar generation is strongest when hydro output may be lower, which can support a more balanced renewable energy mix.

Drax Group plc (LON:DRX), trading as Drax, is a power generation business. The principal downstream enterprises are based in the UK and include Drax Power Limited, which runs the biomass fuelled Drax power station, near Selby in North Yorkshire.

Share on:
Find more news, interviews, share price & company profile here for:

Latest Company News

Britain’s battery storage market faces a global test for capital

Britain’s battery capacity is growing rapidly, but securing the next wave of projects will depend on competitive market signals and a stable investment environment.

Britain’s battery storage market faces a critical investment test

Britain’s battery storage market is growing quickly, but future investment will depend on revenue clarity, regulation and competition from other European markets.

Drax takes control of Aldi’s UK EV charging network

Drax will operate and expand around 1,200 electric vehicle chargers across Aldi’s UK store network.

Why grid optimisation is becoming central to Drax’s energy strategy

Drax says the next phase of the energy transition will depend increasingly on optimisation, with smarter management of generation, storage and flexible assets helping to keep electricity systems reliable as renewable capacity grows.

Drax sets out the case for smarter grid management as renewable power expands

Drax highlights grid optimisation as renewable growth increases the need for flexible, reliable and better-managed electricity systems.

Drax highlights battery storage as a practical answer to grid pressure

Drax highlights battery storage as a practical way to reduce renewable energy waste, support grid stability and improve the efficiency of the UK power system.

Search