SSE is to build a new combined cycle gas turbine (CCGT) power station in North Lincolnshire.
The company says it will bid for a capacity market agreement for the proposed 840MW plant, which will be built next to the existing 740MW plant at Keadby. SSE intends to start work on Keadby 2 in the coming weeks and commission in the early 2020s.
New build generators qualify for 15-year contracts within the capacity market (CM) and SSE said the CM would be “an important aspect of the economics of Keadby 2”.
Siemens will build the plant with SSE investing around £350m in its development and construction.
The announcement came as SSE posted results for the financial year to 31 March.
Adjusted pre-tax profits fell to £1.45bn.
The company lost 430,000 domestic accounts but gained around 4,000 business accounts. However, business energy supply adjusted operating profit fell 28% to £64.2m.
The company installed around 350,000 smart meters over the year, taking total installed smart meters to over 850,000.
See SSE’s full results here.