E.On will put its plans to build a new coal-fired power station at Kingsnorth on hold for as long as three years.
The energy giant told Construction News electricity demand had fallen due to the recession and a new plant was now not needed in the UK until around 2016.
However the company has reiterated that it does not yet have planning permission for the site, and discussions are still ongoing in relation to the necessary carbon capture and storage technology.
An E.on spokeswoman said: “We can confirm that we expect to defer an investment decision on the Kingsnorth proposals for up to two to three years.
“This is based on the global recession, which has pushed back the need for new plant in the UK to around 2016 because of the reduction in demand for electricity.
“As a group, we remain committed to the development of cleaner coal and carbon capture and storage, which we believe have a key role to play alongside renewables, gas and nuclear, in tackling the global threat of climate change while ensuring affordability and security of energy supplies.”
Laing O’Rourke, Morgan Est, Balfour Beatty, Kier, Bam Nuttall and a Costain/Hochtief joint venture had all been in discussions with E.On over the Kingsnorth work, which has been divided into four packages – piling, enabling works, cooling water system civils works and the ‘power island’ (main building).