2016 Closure Likely For Longannet
Longannet power station is likely to close early next year after failing to secure a crucial contract with the National Grid, operator Scottish Power has confirmed.
The troubled coal-fired plant in Fife was bidding for a short-term contract to help maintain voltage levels in the electricity supply from April 2016 to September 2017.
MSPs heard earlier this month that the station would close by the end of March next year unless it was successful in its bid.
National Grid has announced that SSE's gas-fired Peterhead power station has been chosen for the £15 million contract over Longannet and a third bidder.
Neil Clitheroe, chief executive of Scottish Power retail and generation, said: "We are extremely disappointed with National Grid's decision as Scottish Power submitted a competitive bid that reflected our commitment to protecting the immediate future of Longannet power station.
"As we have said previously, today's decision by National Grid means that, in all likelihood, we will be forced to announce the closure of Longannet by March 2016.
"Everyone will appreciate that it is a concerning time for all our people and we will do everything in our power to manage the outcome of this process as best we can.''
The plant has been under pressure from new European Union (EU) environmental legislation and carbon taxation combined with higher transmission charges to connect to the grid due to its location in Scotland.