His new gas strategy is hoped to stimulate building of a new generation of gas-fired power stations needed to make up projected generating shortfalls ahead of the delayed nuclear power station programme coming on stream.
Osborne will unveil a new tax regime to encourage building alongside the autumn statement.
He will also announce a new body to oversee the development of shale gas to reduce of the country’s reliance on imports.
The programme would be greater than the dash for gas of the early nineties, which saw several big gas fired power stations built, creating a boom in industrial construction.
The Government hopes to boost confidence in the investment community to bring forward quickly up to 15 schemes, which have been waiting in the wings.
Already 15GW of gas-fired capacity has been given consent.
Centrica has permission to build a 1,000MW CCGT plant at Kings Lynn, and independent generator Intergen has planning consent for two CCGT plants with a combined output of 1.8GW in Lincolnshire and Essex.
Spain’s Iberdrola, which owns Scottish Power, is planning three gas turbine plants
- Acorn Power / GE – Thorpe Marsh, 1.5GW – Online 2015
- Centrica – Kings Lynn 2, 0.9GW – Online 2014/16
- ESBi /Carlton – Partington, 0.9GW – Online 2013 /14
- Intergen – Gateway, 0.9GW – Online 2014/15
- Intergen – South Holland 0.9GW – Extension of existing plant – online 2014
- SSE – Keadby 2 , 0.9GW – Online 2016/17
- Scottish Power – Cockenzie 1.2GW – Online 2016
- Scottish Power – Damhead Creek 2 1.0GW – Online 2016
- Carlton – Trafford Peaking Power 0.2GW – Online 2012
- Wainstones Energy – Carrington 2a / 2b 1.3GW – Online 2015
- Welsh Power – Cale 0.05GW – Online 2013
Approved, but on hold
- Conoco – Norsea Seal Sands 0.8GW – Could be online 2016
- Eon – Seal Sands/Brine Field 1.0GW – Could be online 2018
- 2Co Energy/Shell – Don Valley 0.9GW – Could be online 2015
- SSE / Atco / EDF – Barking Power 0.5GW – Could be online 2014