Under the plans, the UK’s 10 remaining coal-fired power stations will be forced to convert to alternative fuels, such as woodchips to fit carbon capture and storage equipment, or else shut down completely.
The Times said it expects energy secretary Amber Rudd to announce the proposal ahead of the United Nations climate change conference in Paris in December.
According to trade association Energy UK, coal generated about 30 per cent of UK electricity last year, more than nuclear and renewables.
A Decc spokesperson said: “While fossil fuels have a role to play in meeting our energy demands, evidence shows that coal as a percentage of total generation has fallen from 40 per cent in 2012 to 29 per cent in 2014. This reflects the fact that a number of coal power stations have closed in recent years and we expect this trend to continue.
They insisted the government is “focusing on stimulating investment” in lower-carbon alternatives, “keeping bills as low as possible for both hardworking families and businesses and ensuring our energy supplies are secure and reliable”.
The announcement is likely to reignite fears that new renewables will not come on to the system quickly enough to replace the lost coal-fired generation capacity.
National Grid has predicted a de-rated electricity capacity margin of 5.1 per cent for the coming winter, even with additional balancing measures in place, the tightest in a decade.