The Aberdeenshire gas-fired power station will offer services from April 2016 to September 2017.

As part of the deal, National Grid will use 385MW of Peterhead’s 1,180MW capacity to provide voltage support for its consumers.

National Grid transmission network services director Mike Calviou said: "We recognised a need for voltage support in Scotland due to a gap between the potential closure of thermal plant and the completion of upgrades to the high-voltage transmission network."

Under voltage control method, National Grid uses equipment such as power stations, overhead lines, underground cables and compensation equipment to keep voltage within statutory limits, both in day-to-day operation and after any faults.

SSE energy portfolio management managing director Jim Smith said: "SSE has continually invested in the site since it opened in 1980 and we’re pleased Peterhead will continue to play an important role in ensuring National Grid can provide system stability and resilience going forward."

The company, in partnership with Shell is developing the facility into the world’s first commercial-scale demonstration of CCS at a gas-fired power station.

Image: National Grid will use 385MW of Peterhead’s 1,180MW capacity. Photo: courtesy of SSE.