Peterhead Power Station has missed out as energy supplier SSE were unable to secure funding in a national auction for a contract.
The provisional results of the GB Capacity Market Auction was published on Friday, December 11.
Losing out to other competition, the energy company were unsuccessful in their bid to provide 2972MW of de-rated energy for the Blue Toon.
However, SSE plc was able to provisionally agree on providing a total of 3150MWof de-rated electricity generation capacity from October 2019 to September 2020 at a price of £18/kW.
The final outcome of the auction is subject to confirmation by the Secretary of State for Energy and Climate Change.
SSE have made reassurances that the results of the auction will not have an impact on existing operations at any of SSE’s stations.
Paul Smith, SSE’s managing director of generation, said: “Whilst Peterhead was unsuccessful in securing a capacity agreement this time round, it doesn’t affect existing operations at the plant, as the Capacity Market Auction is just one of multiple options available to the station.
“In addition to its ability to operate in the market, Peterhead has secured a number of contracts to provide support services to National Grid.
“These include a contract to provide up to 750MW of capacity to National Grid’s Supplement Balancing Reserve service this winter and next.
“Against this background, SSE will consider the options for the future of operation of all its power generating plants, including Peterhead.”