Energy company SSE has confirmed it will close its coal-fired power plant in West Yorkshire by March next year.

It said costs at the 48-year old Ferrybridge power station have been rising due to its age and the UK’s environmental policies – and is forecast to lose £100 million in the next five years.

The “difficult decision” to shut down the 1,014MW plant will affect around 172 jobs.

Paul Smith, SSE Managing Director, and Generation said: “It’s been known for many years the UK would have to phase out coal as it moves towards a more sustainable energy mix. We’ve sought to protect jobs and invest in the site to keep it running for as long as we possibly could but ultimately we’ve had to make this regrettable decision today.”

However, SSE said it will work closely with its employees to redeploy them to other sites where possible – including at its Keadby Gas Fired Power Station – and retrain staff if needed.

Ferrybridge first fed electricity to the National Grid in February 1966.

The supplier’s remaining capacity of 1,995MW at Fiddler’s Ferry coal plant will be entered into the 2015 Capacity Market auction.