Scottish and Southern Energy has confirmed that the future of Peterhead Power Station is ‘under review’ placing around 90 jobs in jeopardy.
The move comes after the gas-fired plant missed out in an auction to supply emergency energy to the National Grid.
Around 90 staff work at the Boddam-based station, while a number of contractor jobs also depend on it.
The news is a further blow to the plant which had hoped to become a base for a pioneering carbon capture and storage project. The plug was pulled on the deal along with the prospect of the creation of hundreds of jobs.
The latest development could prove economically disastrous for the Buchan area.
Banff and Buchan MP, Eilidh Whiteford, said that she would be seeking urgent talks with SSE, stating the move could have ‘serious implications’ for the station.
And local MSP Peter Chapman also planned to write to the firm.
Cllr Norman Smith, co-ordinator of the Alligned Independent Group, said it would be very sad to see the station go.
“It’s an employer and it could be a disaster,” he said.
Peterhead Power Station first began producing electricty in 1980. Today it has the capacity to produce more than 1,000 mega-watts of electricity.
However, SSE said it had now failed to win the bid to supply the National Grid with emergency energy for the third time in a row.
It also cited its remote location as a factor stating it was therefore required to pay significantly higher Transmission Entry Capacity (TEC) costs than other power stations on the electricity system, putting it at a disadvantage in the Capacity Market auction.
In a statement, SSE said that it would be engaging with all stakeholders during the review of the station. This would not impact current operations.