US-based electric and gas utility company Entergy New Orleans (Entergy) has received approval for building a 128MW gas-fired power plant in New Orleans with an investment of approximately $210m.

Entergy has secured an approval from the New Orleans City Council for building the gas-fired power plant called New Orleans Power Station.

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Scheduled to commence its operations from January 2020, the new power station is expected to support the grid facility and also provide a reliable service.

Entergy president and CEO Charles Rice said: “Two years ago, the council charged us with finding a solution to provide reliable, safe and affordable power generation following the deactivation of the former Michoud units.

“The city needs local, reliable power generation that is affordable for all of our customers, and this facility will provide just that.”

The electricity utility company is also planning to issue a full notice-to-proceed to the engineering, procurement and construction contractor this month.

“We appreciate the council members and advisors looking at all of the facts before making a decision, and are glad they came to a reasonable conclusion regarding the need for this unit.”

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For the new power station, Entergy New Orleans will be using engines that are predominantly used in cars and trucks.

The engines will have a self-start feature that will allow the utility to start the power unit even if there is no power available on the electric grid.

Upon completion, the plant will reach full power within a quick time period and will support grid stability.

Additionally, the new power unit would facilitate the inclusion of renewable resources, and is expected to create nearly 20 new employment opportunities in the region.

Rice added: “The city needs local, reliable power generation that is affordable for all of our customers, and this facility will provide just that.

“There has been quite a bit of misinformation circulated over the last 18 months by opponents to the plant.

“However, as demonstrated by independent, third-party experts who testified during the council’s December evidentiary hearing, the unit is sound from economic, safety and environmental perspectives.”