Energy giant E.on will close its Killingholme gas-fired power station in North Lincolnshire, saying market conditions are too challenging to continue operations.
The decision follows a review that was prompted after a move in March to stop “normal” generation at the site, which meant releasing Killingholme's 900MW of Transmission Entry Capacity.
National Grid later said the site would not be included in its Supplemental Balancing Reserve service (SBR), which E.on had tendered for. It also unsuccessfully entered into the recent UK Capacity Market Auction.
Around 50 people are employed at the site, though it had employed hundreds previously. E.on said it would “support colleagues affected by today’s announcement”.
Tony Cocker, chief executive of E.on UK, added: “My main priority is our colleagues at Killingholme and we will continue to do all we can to help them through this difficult and uncertain time.
“I would also like to thank everyone who has made a contribution to Killingholme throughout its lifetime – from the time the power station was a plan on a drawing board through to the team that will continue at the site in the months ahead to ensure it remains safe and secure.
“Ultimately, the decision to close the power station is not one we have taken lightly and, as our actions have shown, we have exhausted every possible option to try to keep the plant viable.
“The reality, however, is that market conditions for both gas-fired electricity generation and coal-fired are very challenging and in this particular case too big to overcome which has resulted in 900MW of generation capacity being permanently removed from the UK’s power network.”