Drax Group (LSE:DRX) has seen its shares power up after a postive trading update and news it has been asked by the UK government to delay closure of two coal plants to help keep the lights on amid rising energy prices.
The two plants, which are set to close in September this year, were called in to help in January for limited operations to support security of supply.
It said: "These short-term measures helped to stabilise the power system during periods of system stress and did not result in any material increase in the group's total carbon emissions...
"Drax continues to expect to formally close these two legacy coal units... but remains committed to supporting security of supply in the UK.
"Drax has recently been asked by the UK government to consider options for a limited extension of its coal operations and this remains under review."
With strong trading in the first quarter - despite an increase in costs after it removed Russian biomass from its supply chain - the company expects full year earnings to be at the top end of analysts expectations.
The current City forecast is for 2022 earnings of £571mln, with a range of £540mln to £606mln.
Drax chief executive Will Gardiner said: "In the first quarter of 2022 we delivered a strong system support performance as our reliable, renewable electricity continued to support UK energy security and helped to keep the lights on for millions of British homes and businesses."
Its shares are up over 5% to 844.5p, making it the biggest riser in the FTSE 250.
Analysts at JP Morgan have put an overweight rating on the shares and lifted their price target to 950p from 700p.