Britain’s Drax has been given government approval to build a 90 million pound ($118 million) gas plant in the east of England, the company said on Tuesday.
The 299 megawatt (MW) plant will be a so-called peaking plant which means it only fires up for operation during times of peak demand.
Drax said it could be generating electricity by 2022 but this would be subject to it securing a capacity market subsidy from the government.
Britain’s capacity market — which pays generators to be available at times of high demand to ward off electricity shortages — has been suspended since last November pending a further investigation by European Union regulators.
Britain’s government has said it expects the market to ultimately be reinstated by the European Commission.