The UK’s Severn Power has awarded Siemens a turnkey contract to design, build, operate and manage a new 850 MW combined cycle power plant in South Wales.
The Severn power plant will be the ninth turnkey power plant to be built by Siemens in the UK and the first in Wales. The plant is scheduled to be commissioned in 2010 and is expected to play a key role in meeting future electricity demand in the face of plant retirements.
Severn Power’s owners, Welsh Power, has mandated three banks – Calyon, ING and The Royal Bank of Scotland – to lead and underwrite up to £550 million of debt financing for the project. Planning permission has already been granted and site works have commenced, says Severn.
“There have been concerns raised that the UK will be unable to build new plant, to meet the generation shortfall resulting from older plant retiring, due to the global demand for turbines,” said Alex Lambie, CEO of Welsh Power, which also owns Uskmouth Power. “The Severn Power project will play an important role in delivering efficient and competitive energy for GB customers in the coming years.”
The Severn power plant will be built on the site of the former Uskmouth A coal fired power plant, next to the existing Uskmouth plant, a 360 MW facility, also coal fired. Gas for the new plant will be delivered by extending the local distribution network.
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