Ember analysis of Drax’s 2025 financial reporting shows that public subsidies reached £999 million in 2025. This marks a record level for payments to Drax, attributable to high-emitting power generation at the Drax biomass power station.
Drax power station is the UK’s largest emitter. However, because it burns woody biomass, Drax’s emissions are ‘zero-rated’ in carbon accounting, making the company eligible for public payments. Subsidies are distributed through two schemes: the Renewables Obligation (RO), which covers three of the four generating units at Drax power station (£728 million in 2025), and Contracts for Difference (CfD) payments for the remaining units (£271 million).
Public subsidies in 2025 were £130 million higher compared with 2024 (+15%). This was partly due to a 2% increase in generation, but largely due to the rising value of payments under the Renewables Obligation subsidy scheme, which have increased by 10% for two consecutive years.
Building on this upward trend, the daily value of Drax’s subsidy payments climbed in 2025 to £2.7 million per day – costing every British household over £13 per year. This value is set to fall by around half as some subsidies are planned to be phased out, but will still cost households around £6 per year from early 2027.