DRX, US OFFSHORE, RED, ENGI: EU Energy Sector Specialist Commentary

Research evidence excerpt

DRX, US OFFSHORE, RED, ENGI: EU Energy Sector Specialist Commentary

arency Rules. The FCA has confirmed that it has no concerns warranting further investigation.

- Commenting on the closure of the investigation, Will Gardiner, CEO of Drax said, "We recognise the importance of compliance

with our regulatoryobligations and have worked constructively with the FCA throughout thisinvestigation.We are pleased to see

the investigation closed with no action being taken."

J. P. Morgan View

- Good news, though as we argued at the time the investigation was announced in August 2025 it seemed clear that the FCA was

going to examine the same ground that Ofgem’s previous 13 month investigation had already covered, so we think there was

limited concern that the FCA would come to a different conclusion. Nevertheless, helpful to remove this risk

US Offshore Wind - Invenergy to Receive $765mn to Cancel US Offshore Wind Power Leases

- Bloomberg has reported that Invenergy will receive $765mn to cancel four offshore wind leases under a settlement with the

Interior Department, using the proceeds to invest in natural gas and geothermal projects in the western USA.

- Interior Secretary, Doug Burgum, said in a statement that “the offshore wind leases were sold under the assumptions that

taxpayers would indefinitely subsidize costly, unreliable projects and that no national security concerns were implicated.” The

cancelled leases include one that covers ~84,000 acres in the New York Bight (purchased for $645mn in 2022) as well as off the

Gulf of Maine and the central coast of California.

- This follows c$900mn being released to TotalEnergies in return for the cancellation of two offshore wind leases, a deal that has

caused New York and several other states to sue the Trump administration.