Spalding Energy Expansion Secures 15-Year Capacity Contract in Government’s T-4 UK Capacity Market Auction

Published on: Dec 21, 2016

EDINBURGH, Scotland, December 21, 2016 – InterGen announced today that its 300 megawatt Spalding open cycle gas turbine (OCGT) development project in Lincolnshire, England, was successful in the T-4 Capacity Market auction and has won a 15-year contract. The auction was conducted by National Grid on behalf of the Government for delivery of power from 1 October 2020. The clearing price is £22.50/kW per annum.

InterGen’s Gateway Energy Centre in Essex and Spalding combined cycle gas turbine (CCGT) projects did not secure Capacity Market contracts.

“Overall, InterGen is disappointed with the outcome of the 2016 Capacity Market auction. While our new 300 megawatt Spalding peaker project in Lincolnshire secured a 15-year contract, our proposed new Gateway and Spalding combined cycle gas turbine (CCGT) projects did not win awards,” said Mark Somerset, InterGen’s vice president of development for the EMEA region. “We urge the Government to set out the steps it is going to take to ensure that new large scale, efficient gas plants can be delivered to promote security of supply and lower carbon emissions. Such clarity will give InterGen, our shareholders and partners the required signal whether to invest in the UK or elsewhere.”


InterGen is a global power generation firm with 11 power plants in operation, representing a total generation capacity of 6,331 megawatts (5,378 net equity MW) and including a wind farm. In addition, InterGen operates three compression facilities and a 65-km gas pipeline. These facilities are located in the United Kingdom, The Netherlands, Mexico and Australia. InterGen is jointly owned by the Ontario Teachers’ Pension Plan and China Huaneng Group/Guangdong Yudean Group. For more information, visit


InterGen is planning to expand its existing gas fired power station in Spalding by constructing and operating a new open cycle gas turbine unit of less than 300MW. The expansion is on land adjacent to the existing power station and will generate enough electricity for approximately one million homes.

InterGen received its Section 36 planning consent for the project from the Department of Energy and Climate Change in November 2010 and a revised consent in October 2015. The expansion project is carbon capture ready and targeted to be operational by 2020.