Refusal of state support for renewable energy generation quashed by the Administrative Court

14 Jul 2014

The Administrative Court has granted an application for judicial review brought by Drax Power Ltd against the Department for Energy and Climate Change (“DECC”).  The case concerned the rejection by DECC of Drax’s application for state support in the form of an Investment Contract for conversion of one of the coal-fired units of Drax Power Station to the sole use of biomass fuel.   DECC had concluded that Drax had failed to demonstrate that without the grant of an Investment Contract, there was a significant risk that that the electricity generation to which the contract related, would not occur or would be significantly delayed. Mrs Justice Andrews concluded that DECC’s decision was Wednesbury unreasonable and made a declaration that Drax had satisfied this criterion. The learned Judge has remitted the matter for further consideration.

Tim Ward QC acted for Drax Power Ltd, instructed by Herbert Smith Freehills.

Please click to view the judgment in R (on the application of Drax Power Limited) v Secretary of State for Energy and Climate Change