Posted on: 03/01/2017
Carlton Power, the company that plans to build the 2GW Trafford gas-fired power station in Manchester, has given up its £450 million Capacity Market contract.
The developer said it will still proceed with the project, but added that it had failed to secure the investment it needed to build the power station before the 2019 deadline.
The company had been awarded the subsidy during the 2014 Capacity Market auction.
The contract was worth £30m a year over 15 years.
Talks with BEIS
Carlton Power said: “We did not have sufficient certainty that our Trafford combined-cycle gas turbine project (CCGT) would be completed in the time required.
“The current arrangements for supporting the development of new generation capacity do not give sufficient comfort for this to be brought forward without substantial and unacceptable risk to investors.”
The company added that it would enter into talks with the Department for Business, Energy & Industrial Strategy (BEIS) over ways to encourage investors to back gas projects.
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