In a strategic move to strengthen its flexible generation capabilities, Drax announced on October 30, 2025, that it has agreed to acquire a 260 MW battery energy storage system (BESS) portfolio from Apatura Energy. The £157.2 million (~$207.85 million) deal marks Drax’s first investment in short-duration storage, a key milestone in its mission to support the UK’s energy transition through reliable, dispatchable, and low-carbon power solutions.
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The acquisition represents a major leap forward for Drax’s FlexGen portfolio, which integrates flexible generation and renewable energy assets to stabilize the grid and enhance energy security. The three-project portfolio—Marfleet BESS in Hull, the 150 MW Neilston BESS in East Renfrewshire, and East Kilbride BESS in Lanarkshire—will collectively add 260 MW (520 MWh) of short-duration, fast-response capacity. Once operational, these assets will play a critical role in complementing Drax’s long-duration hydro storage and renewable biomass generation, collectively providing 4.4 GW of dispatchable capacity. This strategic expansion positions Drax as a leading force in balancing the UK’s intermittent renewable output with dependable flexibility solutions.
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The £157.2 million transaction will be funded through Drax’s existing cash and facilities, structured in staged payments between 2025 and 2028. Notably, the deal is expected to deliver returns significantly above Drax’s weighted average cost of capital, underscoring the company’s disciplined investment strategy. Apatura Energy will advance the projects from ready-to-build to operational status under a construction services agreement, ensuring accountability with contractual protections for cost overruns and delays. In addition to the current acquisition, Drax has secured an option over eight additional sites totaling 289 MW under development by Apatura—providing a clear pathway for future FlexGen growth and portfolio diversification.
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Construction across the three BESS projects is scheduled to begin in 2026, with Marfleet and Neilston expected to be operational by 2027, followed by East Kilbride in 2028 upon planning approval. Once completed, the portfolio will allow Drax to provide a broader range of system support services, increasing access to wholesale and balancing markets. These assets will help the UK grid manage variability in renewable output, ensuring reliability as the nation progresses toward its 2035 decarbonization targets. PwC and CMS advised Apatura Energy on the transaction, further reflecting the depth of collaboration behind one of the UK’s most notable energy storage deals in 2025.
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Drax’s acquisition of Apatura Energy’s BESS portfolio represents a forward-looking investment that solidifies its position at the forefront of the UK’s energy transformation. By combining flexible, short-duration battery assets with its existing renewable and long-duration capabilities, Drax is building a powerful foundation for a resilient and sustainable energy future.

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