Plans to double the size of Spalding’s power station have been delayed again – with summer 2017 being the earliest work is now likely to start.
Last spring, InterGen, which owns the town’s existing power station, had said it hoped work to construct the new station – bringing hundreds of construction jobs to the town – could begin early this year.
But the start date hinged on InterGen being successful in the latest Capacity Market Award auctions held in December.
This is where energy companies take part in a reverse auction to secure retainer-style payments to ensure their power plants are available – even if they don’t actually end up generating.
A spokesman for Intergen said the proposed power station bid in the auction, but was unsuccesful.
He said: “The auction cleared at £18/kw per annum, which is materially below the clearance price needed for large scale gas plant to be successful.
“No large new gas plants cleared the auction, meaning InterGen’s competitors were also unsuccessful.
“We are now hoping this year’s auction will be better with the UK Government seeking large scale gas plant.”
The next auction is not until December and, if successful, InterGen hopes construction could then start in the third quarter of 2017.
InterGen is set to invest up to £500million in the project to generate much-needed power for the country.
Around 1,500 jobs would be created during the construction phase, including apprenticeships.
It would also mean new s106 funding for the area and up to 20 permanent skilled jobs once it was operational.
The expansion is planned on around 20 acres of land designated for industrial development and will generate enough electricity for about one million homes.
Clean-burning natural gas will be the fuel for the new plant and modern equipment and technology will be employed to control emissions, which will largely consist of water vapour and carbon dioxide.
In October 2013, InterGen signed a £1billion deal with engineering giant Siemens to build and maintain the new plant, as well as one in Essex.
InterGen is the UK’s largest independent gas-fired power producer and three of its plants, including Spalding, provide six per cent of the country’s average electricity demand.
