These investments will increase the company’s UK generation capacity by up to 2,100MW, which improves npower’s generating portfolio by 23%.

The company has identified two potential sites for the new gas-fired power station; Staythorpe, near Newark in Nottinghamshire, and Pembroke in West Wales, the site of now demolished coal and oil-fired power stations.

Planning consent has already been obtained for a 1,500MW combined cycle gas turbine (CCGT) at the Staythorpe site and initial groundworks carried out. At Pembroke, RWE npower is working with local authorities and regulatory bodies to seek consent for a 2,000MW CCGT.

The power firm aims to begin construction of the new gas plant in 2007, with generation commencing in 2009. Meanwhile, the new wind farms, to be located at Little Cheyne Court in Kent and Knabs Ridge in Yorkshire, are slated to begin generating in 2008.

RWE npower CEO Andrew Duff said: It is vital that the UK’s power generation mix reflects the need to reduce carbon dioxide emissions. The time is now right to begin construction of new large-scale, cleaner power stations and our first step will be a state-of-the-art modern CCGT at one of our two most suitable locations. Meanwhile we are committed to continuing our ambitious wind development program with a further GBP100 million investment in more than 100MW of new capacity including Knabs Ridge and Little Cheyne Court.