LONDON (Reuters) - British utility Centrica Plc (L:CNA) announced plans on Thursday to return its South Humber Bank gas-fired power station in Lincolnshire to full service in 2017 and overhaul gas turbines ahead of the start of its capacity market contract.
Two of Centrica's gas plants were successful in Britain's first capacity market auction, where each was awarded a one year contract starting in October 2018.
Under the capacity market system, introduced by the government to help drive investment in its electricity sector and ensure the country has enough power during times of high demand, the owners of power plants will be paid to provide electricity at short notice.
Centrica said that the 63 million pound overhaul of the 1,285 megawatt power station would secure its future up to 2027, with the site returning to full service in 2017.
The station's capacity will increase by a further 14 megawatts as a result of the turbine upgrade, Centrica said.