Scottish and Southern Energy (SSE) will scale back the production capacity of its proposed Abernedd power station, citing uncertain demand in the electricity market.
SSE has reduced the proposed capacity of the combined cycle gas turbine (CCGT) plant from 870MW to 450MW, a 48% decrease, and plans to delay the project to next year.
Though SSE received consent for the construction and operation of a two-unit power station of up to 870MW in February this year, the firm plans to go ahead with the development on only one unit.
According to the firm, an investment decision on the project will be based on factors including the emerging status of the electricity market.
SSE generation and supply director Alistair Phillips-Davies said that the medium-term outlook for the market is challenging, and has led the company to scale back the Abernedd development.
“Amongst other things, this will allow us to assess the likely impact of electricity market reform as it emerges over the next year and to further analyse the economics of any investment before taking a decision to go ahead with a CCGT unit,” Davies said.
As per the revised plans, the power station, if built, will be operational in late 2015.