A decision by the National Grid to award a contract generating back-up power to Peterhead's SSE-owned power station ahead of the Kincardine plant was confirmed this afternoon (Monday) and means the lights will go out at the West Fife facility early next year.

The facility's future had been in doubt following the breakdown in talks between its owner ScottishPower and the National Grid over connection costs.

Longannet - Scotland's only coal-fired power station - went head-to-head with Peterhead’s SSE-owned power station in a bid to win a deal to secure generating back-up power and its future.

But the decision to award the £15 million contract, to run from April 2016 to September 2017, to the north east facility means Scotland's largest power station will shut by next March.

The Scottish Government's energy minister Fergus Ewing said, “First and foremost my thoughts are with the hundreds of direct employees at Longannet power station, and the many more who are dependent on the plant. Of course I welcome the news that Peterhead power station has secured a contract from National Grid, given its huge strategic importance to Scotland.

“However the news that Longannet is now likely to close prematurely is very concerning for the Scottish Government. I will speak to the leader of Fife Council, Cllr David Ross, this afternoon to discuss a co-ordinated response.

“We will look to engage all relevant authorities and agencies alongside Scottish Power to secure the best possible outcomes for those affected throughout the local economy and further afield. This activity will require cross-party support and close working between all of the relevant authorities.

“Of course there has been broad consensus that the electricity system in Scotland will be less resilient if Longannet closes prematurely. It is vital therefore that these discussions also explore all possible options for averting the premature closure of the site, such as possible action to address discriminatory transmission charges, whether additional National Grid contracts could be available and whether the restoration coal proposal - mentioned in the UK Budget - could help the station’s economics.” Neil Clitheroe, ScottishPower's retail and generation CEO, said, “We are extremely disappointed with National Grid’s decision as ScottishPower 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 issue regarding punitive Transmission Charges has not changed, and this still negatively impacts the future of the station. Beyond that, the current Transmission Charging regime is a major barrier to any future investment in flexible thermal power generation in Scotland. In any future scenario for Scotland, it is vital that the network here is supported by flexible generation to compliment renewables.” Longannet opened in 1973 and currently employs around 260 workers.

We will have more on this story in this Thursday's Press.