Drax signs 10-year PPA with Global Switch, attempts $755m Bluefield Solar purchase
Drax Energy Solutions has signed a 10-year cPPA with Global Switch that is expected to deliver 55 GWh of solar each year from an undisclosed generator, starting Jan. 1, 2027.
The commercial and industrial (C&I) arm of Drax said the PPA would deliver “baseload power” to Global Switch equivalent to 30% of the data center developer’s total electricity use.
Under the agreement, Drax will “sleeve” power offered by the solar generator, and then sell this to Global Switch. pv magazine understands the deal is constructed on an annual matching basis with Renewable Energy Guarantees of Origin (REGOs) – the UK certificate for indicating electricity was generated from renewable sources.
What is sleeving?
Sleeving is the process by which a licensed electricity supplier facilitates the contractual delivery of power from a generator (often a specific asset like a wind or solar farm) to a consumer, handling grid access, balancing, and market settlement on their behalf.
The 10-year deal is the second cPPA between Drax and Global Switch, and both agreements combined should reportedly cover over 70% of the data center developer’s total electricity demand.
Callum O’Reilly, renewables origination and deal structuring manager at Drax Energy Solutions, said cPPAs are becoming a “key risk mitigation strategy” for corporates.
“These transactions protect businesses, stabilize costs, strengthen resilience and provide greater confidence in long-term energy decisions.”
BSIF acquisition
The cPPA announcement quickly followed Drax making a GBP 561 million ($755 million) offer to acquire the Bluefield Solar Income Fund. Established in 2013, the Bluefield Solar Income Fund (BSIF) focuses on the acquisition and long-term management of renewable assets in the United Kingdom.
BSIF has a renewables portfolio of around 900 MW comprising operating and under construction solar and wind assets, plus a development pipeline of more than 1 GW.
The boards of directors for both parties have reached an agreement on an all cash acquisition that values BSIF at approximately GBP 1 billion.
In a press release, Drax said it believes the acquisition will offer an opportunity to grow its UK renewables business while complementing its flexible generation portfolio.
Drax’s attempt to acquire BSIF is part of a wider expansion strategy in the UK solar and energy storage sectors in 2026. The energy company recently deployed PV installations at its Scottish hydropower stations, completed its acquisition of battery optimization Flextricity, and signed multiple tolling agreements for BESS projects including a 15-year deal with developer Zenobe for an 800 MWh project in Scotland.
Ash Hein, FlexGen business development director at Drax, told pv magazine in April that the company’s offtake agreement activity involves leveraging existing capabilities.
“Drax has a 24/7 trading desk in Yorkshire, we’ve been trading power in the GB market for 20-plus years. We operate in all the markets and we’re very aware of how peaking assets like our pumped storage assets play a valuable role in the market,” he said.
“The 15-year agreement does not include price indexation, meaning the inflation risk stays with Zenobe – but the developer will benefit from long-term guaranteed revenue for a BESS project.
“For Drax, the deal offers increased exposure to the BESS market at a time when flexibility is becoming a strategic focus for the business. At the same time, Drax does not pay any upfront capital costs: construction, maintenance and availability risk still rest with Zenobe.”
For more on the Drax 15-year deal and the wider European tolling agreement market, Tolling takes off in Europe available on pv+
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