Drax has agreed to acquire Flexitricity in a£36 million deal as it accelerates its push into battery storage and flexible power.

The transaction values the Edinburgh based optimiser at£36 million and is expected to complete in Q1 2026 subject to regulatory approvals.

Founded in 2004,Flexitricity provides optimisation and route to market services for flexible energy assets using its proprietary controls platform.

It enables assets to participate in wholesale balancing and ancillary services markets.

The business manages more than 900MW of operational assets including battery storage gas peakers renewables and demand side response.

Drax says the deal will support returns significantly above its weighted average cost of capital.

Flexitricity’s platform is expected to underpin Drax’s ambition to build a GW scale battery storage pipeline.

That will combine physical assets with the ability to optimise third party assets using route to market floor and tolling structures.

Drax already provides a route to market for around 2,000 embedded renewable assets with a combined capacity of about 800MW.

Flexitricity employs around 85 people who will join Drax as part of the acquisition.