Siemens will construct and maintain up to 2.1GW of generation capacity at Spalding, Lincolnshire and Gateway, Essex, if Intergen decides the projects are bankable.
The sites border on existing plants owned by Intergen and are supplied by gas and electricity transmission networks.
Intergen stressed the importance of the government’s proposed Capacity Market, through which generators will be paid to make sure there is a comfortable margin of spare capacity. It forms part of the Electricity Market Reform programme that is expected to get parliamentary approval by the end of 2013.
Mark Somerset, who heads up Intergen’s European business, said: “My message to government is to design a Capacity Mechanism which enables independent generators such as Intergen to finance projects such as these. We are at the front of the queue: a bankable design for the Capacity Mechanism will see these projects built, and prove that Electricity Market Reform really does make the difference in attracting new investment.”
The first capacity auctions are due to be held in the second half of 2014, which will see projects like Intergen’s come online in 2018.
Intergen is also looking to secure a long term buyer for power generated at the plants.