As part of this plan, SSE has partnered with Siemens to introduce the new first-of-a-kind, high efficiency gas-fired generation technology to the UK.

Siemens will be responsible for supplying of its 9000HL technology for the Keadby 2 power plant. The firm will also manage technical, construction risk until the plant is handed over to SSE.

Siemens power and gas division CEO Willi Meixner said: “Siemens has invested significantly in the development and deployment of this new engine, which is a combination of proven and new technologies to offer leading efficiencies to global power plant operators.”

Work on the project is planned to commence in spring 2018. The plant will be built next to the existing 740MW plant at Keadby.

SSE wholesale director Martin Pibworth said: “SSE is very pleased to have this unique opportunity now to be partner with Siemens to build a new state-of-the-art gas-fired power station at Keadby 2.

“Its highly efficient technology, not previously seen in the UK, will provide firm, reliable power from the early 2020s at half the carbon emissions of the coal generation it is replacing.

“New CCGT complements SSE’s ambitions to develop more offshore and onshore wind as CCGTs remain well-placed to provide flexible, grid-scale back up to complement the large volumes of renewables the UK needs to meet its low carbon targets.”

SSE said that the CCGT plant will also contribute to UK’s plan to move away from coal in the 2020s, and allows integration of more renewables into the power grid.

The investment in the power plant is part of a wider £6bn three-year investment plan announced by the firm, focusing on regulated electricity networks and renewable energy sources, in the UK and Ireland.

Of the total investment, around £4bn is planned to be invested in upgrading electricity networks in the north of Scotland and central southern England as well as for developing new sources of renewable energy, including offshore wind in the UK.