Share tip of the week: efficient electricity generator

Around 15% of the UK's less-efficient power stations are to be closed by 2015. That can only be good news for this electricity generating company, says Paul Hill.

Energy security and global warming are two of the biggest issues facing mankind. Not only will demand for power rise over the next 40 years, but there will also be a much greater need to wean our transport and heating systems off oil onto zero-emission electricity. So where does this leave Drax Group, the owner of the largest, cleanest and most efficient coal-fired power station in western Europe?

The firm's generation site is located in Yorkshire and produces around 7% of the nation's electricity. The majority is fed directly into the national grid. The remainder is taken by its distribution business, Haven Power, which serves 24,000 customers. Given its scale, Drax is vital to the UK meeting its energy requirements. And its importance will increase as the North Sea's oil and gas output steadily dwindles, nuclear sites are decommissioned, and 15% of the country's less-efficient fossil-fuel power stations are closed by 2015.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.