A gas-fired power station with a capacity of 735MW will re-open in North Lincolnshire.
The Keadby power plant will start operating in again November following its closure in 2013.
It was part of the first Capacity Market auction in December last year and will be used to cover peak demand in 2018/19.
The facility, owned by SSE, employs around 53 people.
The company has transferred 21 workers to Keadby from its Ferrybridge coal-fired power station which is closing in March 2016.
The firm stated the plant will provide an “important” contribution to maintaining security of supply this winter.
Paul Smith, SSE Managing Director Generation said: “Today’s news means government and the National Grid have more capacity with which to power people’s homes this winter. The station has undergone extensive upgrades meaning it can operate with improved flexibility in the market.”
According to National Grid, electricity margins in the UK will continue to be “tight but manageable” this winter.