Power station plan faces funding crisis (From Echo)

Power station plan faces funding crisis

8:30am Tuesday 17th July 2012 in Basildon By Mat Abbott

PLANS for a £600million gas-fired power station in Stanford-le-Hope could be dead in the water due to a lack of money.

The plans for the 900 mega-watt power station on the London Gateway site were given the go-ahead by Energy Minister Charles Hendry last year.

But a change in Government energy policy means no subsidy is available for non-renewable power stations.

It’s also emerged there is a shortfall in funding from banks and building societies for the build, making it unlikely to happen.

InterGen, the firm behind the plans, remain hopeful the Government will support gas-fired power stations as they look to fill a potential 2015 power shortage, although this is not guaranteed.

Melissa McKerrow, public affairs manager at InterGen, said: “The Government isreforming the energy market and that will involve giving renewable energy stations a subsidy, but not gas-fired power stations.

“In order for us to complete the project, we have to get financing from banks and building societies, but there is currently no market support for gas-fired power stations.

“It’s a timing issue. The Government knows we will need new gas-fired power stations so if it does at it says it’s currently going to do, we’ll be able to build the station without delay.”

Corringham and Fobbing ward councillor Mark Coxshall said: “I have been working with InterGen throughout. It’s an ideal place for a new power station, and I’m working with both MPs to ensure security of energy supply in this country.”

Planning permission has already been granted for the plant, which would be the cleanest and most technologically advanced in the world, creating 600 jobs during construction and 60 full-time skilled roles once it is operational.

It would be able to power the Gateway port next door and around one million homes in the area.

A public exhibition was held last week at Corringham Hall in Springhouse Road, Corringham, to gauge public support for the plans.

One viewer, Derek Parker, 74, of Monks Haven in Stanford-Le-Hope, welcomed the plans.

He said: “I think the outcome is excellent. We’re getting the extra power supply the whole country needs and I fully support the idea.

“I had had concerns about the overhead lines because we’ve got a lot around here, but these consultations have been excellent and it’s not now an issue.”