Plans to close Rugeley coal-fired power station in Staffordshire have been announced.
The 1GW plant is expected to cease operations this summer “due to the deterioration in market conditions” for coal generation in the UK as a result of increases in carbon costs and continued fall in power prices, operator ENGIE said.
The power station can provide enough electricity to power one million homes.
ENGIE added the closure could potentially lead to 150 job losses, subject to the outcome of an employee consultation and any further discussions with government bodies.
The news follows the government’s plans to shut all unabated coal-fired power plants by 2025.
David Alcock, CEO of ENGIE’s Energy Infrastructure division in the UK, said: “It is with deep regret that we have had to make this decision at Rugeley. Our priority now is to support the employees and help them through this period.
“We implemented a number of changes at Rugeley a year ago in order to help maintain operations at the site but a combination of falling prices and the impact of various market changes has now made this unviable.”
The power station is jointly owned by ENGIE (75%) and Mitsui & Co Limited (25%).
Last week SSE announced it is most likely to close three of the four units at its 1,995MW coal-fired power plant in Cheshire.