Scottish and Southern Energy and ESBI are prepared to initiate construction of their new GBP400 million power plant joint venture early in 2007, having dealt with all of the financial and legal issues.

The companies have entered a 50:50 joint venture to build the Marchwood Power plant in Southampton, UK. Construction of the 840MW combined cycle gas turbine (CCGT) power facility is now expected to start in early 2007. The plant is then scheduled to be commercial operation in time for the winter of 2009/10.

Under the agreements, the plant will be operated by Marchwood Power Ltd, which will be responsible for ensuring it is available to generate electricity as required by its customer, SSE. SSE will supply the gas for conversion into electricity at the plant, and the net carbon emissions allowances, and will sell the resulting output into the UK electricity market.