SSE and the National Grid have signed a one-year deal for SSE's Peterhead Power Station to provide ancillary support services to the electricity system in the north of Scotland.

The agreement will allow the National Grid to use up to 780MW of Peterhead's 1180MW capacity in order to provide these support services, but prevents the station from business-as-usual participation in the electricity market, SSE has said.

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The provider added that the awarding of the contract will not impact its £15m investment to improve the station's flexibility and efficiency and will continue as planned in 2014/15. It also will not impact on a proposed Carbon Capture and Storage scheme at Peterhead, which Shell UK is developing with SSE's support.

(JP/CD)