An investment worth £63 million will be made to upgrade a 1.2GW gas-fired power plant in North East Lincolnshire.
Centrica will spend the cash on an overhaul of the gas turbines and the installation of new blades at the South Humber Bank power station.
The plant is currently capable of meeting the needs of more than one million homes.
The improvements will increase the facility’s capacity by a further 14MW, according to the company.
It claims the works will help secure the life of the site up to 2027.
The part of the site which is inactive will return to full service in 2017, it added.
Jorge Pikunic, Managing Director of Centrica’s Distributed Energy and Power business said: “We were pleased to see the government’s announcements last week signalling the important role that power stations like South Humber Bank will continue to play for UK security of supply and look forward to hearing more about their plans to support investment in the sector. The market for gas-fired generation continues to be challenging but with the right policy landscape, we are confident it can improve.”