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Drax Group plc ( (GB:DRX) ) has shared an announcement.
Drax Group has signed its first tolling agreement for 250MW (500MWh) of battery energy storage capacity with Fidra Energy’s West Burton C project in England, further expanding its FlexGen portfolio. The 10-year, capital-light deal gives Drax full operational control and dispatch rights over the new BESS asset, with Fidra retaining construction and maintenance responsibilities, and is expected to generate returns significantly above Drax’s weighted average cost of capital. The arrangement, which depends on Fidra’s final investment decision by the third quarter of 2026 and targeted commercial operations in the second half of 2029, complements Drax’s recent acquisitions of Flexitricity and three BESS developments, reinforcing its positioning in flexible, low-carbon power and aligning with UK objectives on energy security and decarbonisation.
The most recent analyst rating on (GB:DRX) stock is a Buy with a £1006.00 price target. To see the full list of analyst forecasts on Drax Group plc stock, see the GB:DRX Stock Forecast page.
Spark’s Take on GB:DRX Stock
According to Spark, TipRanks’ AI Analyst, GB:DRX is a Outperform.
Drax Group plc’s strong financial performance, particularly in cash generation and profitability, along with positive technical indicators and a favorable valuation, contribute significantly to its overall score. The company’s strategic initiatives, including share buybacks and government agreements, further bolster its market position. However, challenges in revenue growth and market dynamics in the pellet sector pose risks that need careful management.
To see Spark’s full report on GB:DRX stock, click here.
More about Drax Group plc
Drax Group plc is a UK-based energy company focused on flexible generation and decarbonisation, with a growing portfolio in Battery Energy Storage Systems (BESS) and asset optimisation. Through its FlexGen business, Drax is building a gigawatt-scale pipeline of short-duration, fast-response storage assets and services that support UK energy security and the transition to a low-carbon power system.
Average Trading Volume: 1,284,834
Technical Sentiment Signal: Buy
Current Market Cap: £3.09B
Learn more about DRX stock on TipRanks’ Stock Analysis page.