Drax Group

1. Regulatory Risk: due to the increasing focus on reducing carbon emissions, the Drax Group is required to invest heavily in renewable and sustainable energy sources. If regulations change in the future, this could have a significant impact on the Group’s operations and bottom line.

2. Competitive Risk: the Drax Group is faced with intense competition from other renewable energy companies, as well as traditional energy generation companies. This competition can lead to price wars, which can have an adverse effect on the Group’s profitability.

3. Economic Risk: from falling electricity demand due to energy efficiency gains, movements in fuel and energy prices, and other economic pressures, the Drax Group’s operations and profitability may be affected.

4. Financial Risk: borrowing money to finance investments may increase the Group’s exposure to capital markets fluctuations and to interest rate and currency risks.

5. Environmental Risk: Compliance with environmental regulations, and potential climate change regulation, may increase costs for the Drax Group. Additionally, investments in renewable energy could be affected by weather patterns and extreme weather events.